How do Closing Costs Work?

Every home sale incurs fixed costs. Sellers and buyers usually share these closing costs, as the sales contract specifies.

As indicated below, many of the buyer's closing costs are related to the costs of originating the mortgage loan. At American Mortgage Advisers, Inc, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This cost estimate is based on our past experience. It's important to note that while our LEs are very precise, we can't always predict your costs to the penny. We handle questions about closing costs every day at American Mortgage Advisers, Inc, so don't hesitate to ask if you have questions.

Below is a generic list of closing costs. We will always provide you with a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs

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

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

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

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