How do Closing Costs Work?
All residential real estate sales incurs certain costs. Sellers and buyers usually share these closing costs, as specified in the real estate sales contract.
As you'll see below, many of the costs result from getting your mortgage. At Financial Edge Mortgage Corp., we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on costs related to your mortgage in your "Loan Estimate".
The Loan Estimate (LE)
Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. This cost estimate comes out of our past experience. It's important to note that while our LEs are very accurate, we cannot always predict your costs to the penny. We review LEs with buyers every day, so we'd be glad to answer your questions about closing costs.
We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you have completed your loan application. At Financial Edge Mortgage Corp., we don't believe in surprises, so if your costs change, we will 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 Fee
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Taxes
- Loan-related costs
Property Taxes
- Insurance
- Recording Fees & Transfer Taxes
Homeowners Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance if applicable
Financial Edge Mortgage Corp. can help you understand closing costs. Give us a call at 425-508-9988.