How do Closing Costs Work?
All residential real estate transactions involves costs. Sellers and buyers usually split these closing costs, as the sales contract specifies.
Many of the costs associated with buying a home are associated with getting the mortgage. At Professional Choice Mortgage, we have extensive experience in mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Loan Estimate".
The Loan Estimate (LE)
Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This cost estimate comes out of the loan officer's past experience. Please note that while our LEs are very precise, we can't always predict closing costs to the penny. We explain Loan Estimates with buyers every day, so we are happy to answer any questions you have about closing costs.
We've provided a general list of closing costs below, but we'll give you a specific list of closing costs, with amounts, soon after you have completed your application. At Professional Choice Mortgage, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
- Escrow Fees
- Costs related to "originating" your loan
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Costs
- Pulling Your Credit Report
- Interest Payment
- Recording Fees & Transfer Taxes
- Title Insurance
- Flood / Earthquake Insurance
- Private Mortgage Insurance (PMI)
At Professional Choice Mortgage, we answer questions about closing costs every day. Call us at 814-861-3310.