How do Closing Costs Work?
Certain standard costs are associated with closing the sale of a home. Buyers and sellers customarily share these closing costs, as specified in the sales contract.
Many of the costs associated with buying residential real estate are associated with getting the mortgage loan. At Financial Edge Mortgage Corp., we are highly experienced in residential mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Loan Estimate".
Loan Estimate (Also known as the LE)
Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This closing cost estimate is based on the loan officer's past experience. Please note that while our LEs are very accurate, we can't always estimate your closing costs to the penny. We explain Loan Estimates with buyers every day, so we are happy to answer your questions about closing costs.
We've provided a general list of closing costs below, but we'll give you a specific list of closing costs, with amounts, soon after you complete your application. At Financial Edge Mortgage Corp., we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
Loan-Related Costs
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Costs
- Obtaining Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Taxes
- Loan Origination Fee
Property Taxes
- Recording Fees and Transfer Taxes
- Insurance
Homeowners Insurance
- Flood / Earthquake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
At Financial Edge Mortgage Corp., we answer questions about closing costs every day. Call us: 425-508-9988.