Reverse Mortgages Home What are Reverse Mortgages? Who is eligible for them? Types of Reverse Mortgages Why choose Reverse Mortgages Paying back Reverse Mortgages Questions to ask lenders Their disadvantages Reverse Mortgage requirements Origination and MIP Fees Dealing with closing costs The process of getting one What is the HECM? Appraisal Fees Servicing Set-Aside Dealing with Closing Costs   There are a variety of potential closing costs required for reverse mortgages. We want to make you aware of some of the things you can expect. However, many, if not all, of these costs can be financed into your loan.   Credit Report & Flood Certification Fee First, you will be required to get a credit report, costing around $20, to verify any federal tax liens or other judgements against the borrower. Additionally, you will have to pay a flood certification fee that will help determine whether the property is located on a federally-designated flood plane area; this will also cost around $20.   Closing Fee, Document Preparation Fee, & Recording Fee You will also have an escrow, settlement, or closing fee that includes a title search and a variety of other closing services required by the lender. This is the largest part of your closing costs, ranging from $150-$450. There is also a document preparation fee of $75-$150 required to prepare all of the final closing documents such as the mortgage note and any other items that need to be recorded. In addition, a recording fee is charged to record the mortgage lien with the County Recorder’s Office; this cost ranges from $50-$100.   Courier Fee & Title Insurance A courier fee may be charged to cover the cost of mailing any documents overnight between the lender and the title company or the title company and the loan investor; this is a common practice with costs generally remaining under $50. Title insurance must also be paid to help protect the lender or the buyer against any loss that comes from a dispute over who owns the property. This cost will vary from loan to loan, depending on the size of the loan, with higher costs correlating with larger loans..   Pest Inspection & Land Survey Finally, you will have a pest inspection costing around $100 to verify whether the home is infested with termites or other wood-destroying pests. A survey is also required to determine the official boundaries of the property. The cost is usually around $250, and the survey is used to assure that any adjoining properties have not somehow ended up on the reverse mortgage borrower’s property.   The closing costs may seem overwhelming at first, but this can all be financed into your loan. Most of these requirements are not only for the lender’s protection but yours as well.