What are Closing Costs?

"Closing Costs" are the fees that cover the various services involved when you sell or buy residential real estate. Buyers and sellers almost always negotiate to decide how to split these costs.

Many of the costs associated with buying a home are associated with getting a mortgage loan. Since American Mortgage Advisers, Inc is highly experienced with mortgages and closings, we often explain the details of closing costs.

Loan Estimate (LE)

Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This closing cost estimate is based on the loan officer's past experience. It's important to note that while our LEs are very precise, we cannot always predict your costs to the penny. We explain Loan Estimates with buyers almost every day, so we will be happy to answer your questions about closing costs.

Below you'll find a fairly general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we provide your Loan Estimate.

Standard Closing Costs

Loan-Related Costs

• Appraisal Fee
• Pulling Your Credit Report
• Interest Payment
• Escrow Fees
• Taxes
• Loan Origination Fee
• Points — lower your mortgage interest rate (optional)

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

• Title Insurance
• Flood / Quake Insurance if applicable
• Private Mortgage Insurance (PMI)

At American Mortgage Advisers, Inc, we answer questions about closing costs every day. Give us a call at 2147390569.