How do Closing Costs Work?

Certain standard costs are related to closing the sale of a home. Sellers and buyers almost always split these costs, as the sales contract specifies.

As indicated below, many of the buyer's closing costs cover the costs of getting the loan. At Professional Choice Mortgage, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Loan Estimate".

Loan Estimate (Also known as the LE)

Very shortly after you apply for a loan, we will give you a "Loan Estimate" of your closing costs. The closing costs spelled out in the Loan Estimate are estimated based on Professional Choice Mortgage's experience with mortgage loans, but costs usually vary a little bit between the LE and closing. We field questions about these costs every day at Professional Choice Mortgage, so don't hesitate to ask if we can help answer your questions.

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

Standard Closing Costs

Loan-Related Costs
  • Loan Origination Fee
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Various Taxes
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

Professional Choice Mortgage can help you understand closing costs. Call us at 814-861-3310.