Welcome to the Rand CRE show commercial real estate with no stone left unturned.

What's up, everyone? This is Will Coleman bringing to you the Rand CRE show. Normally I would be

joined by my host, Mike Terravella. However, he is working hard on a due diligence assignment, getting all the

docs in order for closing we have coming up soon. So shout out to Mike for working hard.

And normally we would have a guest on the show, but what we thought about doing is doing

some shorter quick segment in podcast, just covering a topic that we get asked a lot about.

And so today I wanted to touch on the topic that I probably get asked the most, which is,

what are my closing costs when closing a loan?

So today we're going to cover your typical loan closing costs. And I guess I would

say there's really three frameworks to think about of closing costs. There's your day one kind of

upfront costs. There's the origination fee that the lender will charge. And then there's kind of a bucket

of miscellaneous costs.

So day one, most lenders will take what we'll call an application deposit.

So this application deposit is going to cover your third-party reports, your lender's underwriting fees and expenses,

as well as your lender legal. So appraisal, the third-party reports, your appraisal, your

phase one, so your environmental reports, and the physical inspection of the property,

the cost associated with that. The lender underwriting, which is, there's a lot of, like,

random $300, $400 fees that they charge in order to coop themselves for the cost to, to underwrite

the loan, you know, processing, underwriting, things like that.

And then the last thing is they're lender legal because they will use a third party legal team

as to draft the loan docs and things like that. So each lender is going to have different costs

for exactly what this will be.

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