How do Closing Costs Work?

All residential real estate sales incurs certain costs. Sellers and buyers usually split 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 loan. Since Professional Choice Mortgage has extensive experience with mortgages & closings, we are closing cost experts.

Loan Estimates (LEs)

Very soon after you submit your application, we will provide you with a "Loan Estimate" of your closing costs. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs often vary by small amounts between the Loan Estimate (LE) and closing. We field buyers' questions about closing costs every day at Professional Choice Mortgage, so please feel free to contact us if we can help answer your questions.

Below you'll find a generic list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs

• Up-front Interest Payment
• Escrow Fees
• Taxes
• Costs related to "originating" your loan
• Points — A fee paid to lower your interest rate (optional)
• Appraisal Fee
• Credit Report

Property Taxes

• Insurance
• Transfer Taxes & Recording Fees

Homeowners Insurance

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

Professional Choice Mortgage can help you understand closing costs. Give us a call at 8148613310.