Definition of "Acquisition cost"
Scott Ricamore, Real Estate Agent
Keller Williams Park Cities
Total price of purchasing property, including the amount of the property, cost of appraisal fees, attorney's fee, commission, credit report, hazard insurance, document preparation fee, loan application fee, mortgage insurance application fee, mortgage insurance premium, mortgage taxes, pest inspection, property survey, tax stamps. And title insurance.
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Comments for Acquisition Cost
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Aug 22, 2018 10:42:38As a homeowner or real estate agent?
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suppose I borrow money ,as an investor,to buy a house .Explain to me how I could take an acquisition fee and how the overall sum would be payed back to my private lender
Aug 04, 2018 09:38:13Hello Oya
Aug 06, 2018 09:31:25Thank you for reaching out!
An acquisition fee is a sort of administrative fee that lenders set up for their work arranging the loan. It can be paid as a one-time thing that you pay upfront if you negotiate so - the values typically aren't that big, so it's doable. But it's more common to water down the acquisition fee inside the monthly installments. For instance: instead of paying $800 in one shot, you will include $20 on your monthly payment of $1000, leading to a mortgage of $1020 a month. for 40 months.
Hope we cleared that one for you! Good luck!