How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved when you sell or buy a house. Buyers and sellers often negotiate the payment of these costs.

As you'll see below, many of the buyer's closing costs are related to the costs of getting the mortgage loan. Since My Mortgage Option has extensive experience with mortgages and closings, we are closing cost experts.

The 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. This cost estimate comes out of our past experience. Please note that while our LEs are very precise, we can't always estimate closing costs to the penny. We go over LEs with buyers every day, so we'd be glad to answer the you have about closing costs.

Below you'll find a generic list of closing costs. We will always provide you with a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Getting YourCredit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

My Mortgage Option can help you understand closing costs. Give us a call: 4693224391.

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