How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved in the sale of residential real estate. Buyers and sellers negotiate these costs.

As the list below indicates, many of the costs result from getting your mortgage loan. Since American Mortgage Advisers, Inc has extensive experience with mortgages and closings, we are closing cost experts.

Loan Estimate (Also known as the LE)

Very soon after you apply for a loan, we'll give you the "Loan Estimate" of your costs. The cost estimate is based on our past experience. Please note that while our LEs are very precise, we can't always estimate costs to the penny. We go over LEs with buyers every day, so we'd be glad to answer any questions you have about closing costs.

Below is a fairly generic 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

• Credit Report
• Up-front Interest Payment
• Escrow Account
• Various Taxes
• Loan-related costs
• Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
• Appraisal Costs

Property Taxes

• Insurance
• Transfer Taxes and Recording Fees

Homeowners Insurance

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

American Mortgage Advisers, Inc can help you understand closing costs. Give us a call: 2147390569.