How do Closing Costs Work?
"Closing Costs" are the fees which cover the various services involved when you sell or buy a home. Sellers and buyers often negotiate the payment of these closing costs.
Many of the costs associated with buying residential real estate are associated with getting a mortgage. Since American Mortgage Advisers, Inc has extensive experience with closings and mortgages, we can help you understand your closing costs.
The Loan Estimate (LE)
Soon after you apply for a loan, we'll give you a "Loan Estimate" of your closing costs. The cost estimate is based on the loan officer's past experience. Please note that while our LEs are very precise, we can't always predict closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that can vary a little bit at closing.
Below is a generic list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we deliver your Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Appraisal Costs
- Credit Report
- Interest Payment
- Escrow Fees
- Various Taxes
- Loan Origination Fee
- Points — A fee paid to lower your mortgage interest rate (optional)
Property Taxes
- Insurance
- Transfer Taxes and Recording Fees
Homeowners Insurance
- Title Insurance
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
At American Mortgage Advisers, Inc, we answer questions about closing costs every day. Give us a call at 2148657442.