Reverse Mortgage Glossary
Third Party Closing Costs
The closing costs for a HECM reverse mortgage usually come in three categories: IMIP, origination, and 3rd party closing costs. The third party closing costs are the services the lender has to hire out to get your reverse mortgage completed. Such costs can include appraisal, credit report, flood certification, tax certification, notary, document preparation, attorneys fees, notary, escrow, survey, foundation inspection, and title insurance, etc.
Not all of these costs will apply to every loan scenario, and there may even be added costs that would apply to your particular situation. Note that lenders are not allowed by law to markup these costs. They have to be legitimate expenses to get your loan done and the cost incurred is what’s passed on to you.
Depending on your situation, the lender may be able to cover all or part of your 3rd party closing costs with a lender credit. There’s no guarantees here, but it doesn’t hurt to ask.