How do Closing Costs Work?
"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Buyers & sellers negotiate these costs.
As indicated below, many of the buyer's closing costs are related to the costs of originating the loan. At Home Pointe Mortgage Company, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Loan Estimate".
Loan Estimates (LEs)
Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the Loan Estimate are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We explain LEs with buyers every day, so we are happy to answer your questions about closing costs.
Below you'll find a generic list of costs for buying a home. We will always provide a specific list of your closing costs when we provide your Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Various Taxes
- Costs associated with "originating" your loan
- Points — lower your interest rate (optional)
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Escrow Fees
Property Taxes
- Recording Fees and Transfer Taxes
- Insurance
Homeowners Insurance
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
At Home Pointe Mortgage Company, we answer questions about closing costs every day. Call us at 7702202800.