How do Closing Costs Work?

"Closing Costs" are the fees that pay for the various services involved in the sale of a home. Buyers & sellers usually negotiate to decide how to split these costs.

As indicated below, many of the closing costs result from getting your mortgage loan. At American Mortgage Advisers, Inc, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".

Loan Estimate (Also known as the LE)

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 vary by small amounts between the Loan Estimate (LE) and closing. We field buyers' questions about closing costs every day at American Mortgage Advisers, Inc, so please feel free to contact us if we can help answer your questions.

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

Standard Closing Costs

Loan-Related Costs

• Costs associated with "originating" your loan
• Points — These are costs you pay up-front to lower your interest rate (optional)
• Appraisal Fee
• Obtaining Your Credit Report
• Up-front Interest Payment
• Escrow Fees
• Taxes

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

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

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