What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a house. Sellers and buyers negotiate the payment of these costs.
As you'll see below, many of the costs result from getting your mortgage loan. Since Financial Edge Mortgage Corp. is highly experienced with mortgages & closings, we can help you understand your closing costs.
The Loan Estimate (Also known as the LE)
Soon after you apply for a loan, we'll provide you with a "Loan Estimate" of your closing costs. The closing costs specified in the Loan Estimate are estimated based on our experience with mortgage loans, but costs often change a little bit between the LE and closing. We review Loan Estimates with buyers every day, so we'd be glad to answer your questions about closing costs.
Below is a fairly generic list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we give you a Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Credit Report
- Up-front Interest Payment
- Escrow Fees
- Taxes
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Fee
Property Taxes
- Transfer Taxes & Recording Fees
- Insurance
Homeowners Insurance
- Title Insurance
- Flood / Quake Insurance
- Private Mortgage Insurance (PMI)
At Financial Edge Mortgage Corp., we answer questions about closing costs every day. Call us: 425-508-9988.