How do Closing Costs Work?

"Closing Costs" are the fees that pay for various services involved when you sell or buy a house. Buyers and sellers often negotiate to determine who will pay different portions of these costs.

As indicated below, many of the buyer's costs cover the costs of originating the mortgage loan. Since Financial Edge Mortgage Corp. is highly experienced with closings & mortgages, we can help you understand your closing costs.

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. We base this cost estimate on our many years of past experience. It's important to note that while our LEs are very accurate, we cannot always estimate costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that sometimes change slightly at closing.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, 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
  • Interest Payment
  • Escrow Account
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Getting YourCredit Report
Property Taxes
  • Insurance
  • Transfer Taxes and Recording Fees
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood / Earthquake Insurance

At Financial Edge Mortgage Corp., we answer questions about closing costs every day. Give us a call at 425-508-9988.

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