What are Closing Costs?

"Closing Costs" are the fees which pay for the various services involved when you sell or buy residential real estate. Sellers & buyers often negotiate these closing costs.

As the list below indicates, many of the closing costs result from getting your mortgage. Since American Mortgage Advisers, Inc has extensive experience with mortgages & closings, we often explain the details of closing costs.

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between delivery of the LE and closing. We answer questions about these costs every day at American Mortgage Advisers, Inc, so please be sure to ask if you have questions.

Below is a general list of closing costs. We will provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs

• Credit Report
• Interest Payment
• Escrow Fees
• Taxes
• Loan Origination Fee
• Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
• Appraisal Fee

Property Taxes

• Recording Fees and Transfer Taxes
• Insurance

Homeowners Insurance

• Flood or Earthquake Insurance if applicable
• Private Mortgage Insurance (PMI)
• Title Insurance

American Mortgage Advisers, Inc can answer questions about these closing costs. Call us at 2147390569.