COMMERCIAL MORTGAGE CLOSING COSTS

Costs Can Vary

Closing costs between lenders can vary greatly and at times can be confusing to compare. At CapitalMAC we invite you to look at our rates and fees, and compare them to other lenders. With over 600 lending sources in our database to shop from, we can offer the best rates in the country and we encourage you to find out for yourself. The key to getting the lowest closing costs is to break down the closing costs into three separate categories of charges:

Overview Of The Three Major Closing Cost Categories

• Lenders fees
• Settlement Agent - Title company fees
• Prepaid Items

Lender Fees

These are the closing costs that are paid to the actual Lender. These fees vary widely from one lender to another and can affect rates dramatically. Lenders often advertise low rates but have high costs associated with lender fees, be sure to check when shopping. Lender fees can be broken down into categories:

1. Appraisal fee - $750 - $20,000
   Appraisals are done by independent fee appraisers, but are ordered by CapitalMAC. Although costs of appraisals vary depending on state and property type, CapitalMAC has negotiated some of the lowest appraisal fees in the nation and passes them on to our customers. Call us at (310) 430-1441 for the most accurate quote for an appraisal in your area.
2. Credit Report
   $15 per borrowing entity
3. Third party fees
   Depending on the type of loan and location of the real estate, there may be a fee for an environmental report, a fee for a seismic report and possibly legal reports.
4. Misc. Lender Charges - Commitment Fee
   A commitment deposit fee is required upon signing of a Letter Of Interest. This is a deposit and will be applied to your closing costs and third party report fees. In addition, this deposit demonstrates to the Lender that you are serious about pursuing the commercial loan.

Settlement Agent - Title Company Fees

The lender does not charge these fees. These services are actually performed by separate companies. CapitalMAC has established working relationships with several Nationally based Title Companies. Because we close loans all over the country every week, it is important to us to work with a title company with a demonstrated ability to do the necessary title work and loan closings in a competent and timely manner. Our Title Companies are both industry leaders and companies that we know we can work with to close your loan well within your time parameters. Because we order the title work for you, you don't have to spend time looking for a closing company or mediating between the lender and title company. We coordinate everything for you. Settlement agent and title company fees can vary greatly by City, County, and State. CapitalMAC encourages you to consult with a CapitalMAC loan consultant to get the most accurate assessment of these closing costs. The fees paid to the Settlement - Title company often include the following items:

Prepaid Items

Borrowers are required to prepay the following. These fees are usually industry standard practices and do not vary greatly between lenders.

• Two - six months pro-rated real estate taxes
• Possibly real estate tax and insurance impounds (Depends on lender and Loan-To-Value)
• 12 months property fire/hazard insurance
• Interim/Prorated interest