How do Closing Costs Work?
Certain standard costs are associated with closing the sale of a home. Buyers and sellers almost always split these costs, as the sales contract specifies.
Many of the costs associated with buying a house are associated with getting a mortgage loan. At Financial Edge Mortgage Corp., we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".
Loan Estimate (Also known as the LE)
Soon after you submit your application, we will provide you with a "Loan Estimate" of your closing costs. We base this closing cost estimate on our extensive past experience. It's important to note that while our LEs are very precise, we can't always predict closing costs to the penny. We go over Loan Estimates with buyers every day, so we'd be glad to answer any questions you have about closing costs.
We've provided a general list of closing costs below, but we will give 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
- Appraisal Fee
- Credit Report
- Up-front Interest Payment
- Escrow Fees
- Various Taxes
- Loan-related costs
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Recording Fees and Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Earthquake Insurance
At Financial Edge Mortgage Corp., we answer questions about closing costs every day. Call us at 425-508-9988.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.