How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of a house. Buyers and sellers negotiate these costs.

As indicated below, many of the buyer's closing costs cover the costs of originating the loan. At Test, we are highly experienced in mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Loan Estimate".

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. This closing cost estimate comes out of our past experience. It's important to note that while our LEs are very precise, we cannot always estimate your closing costs to the penny. We field buyers' questions about closing costs every day at Test, so don't hesitate to contact us if you have questions.

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

Standard Closing Costs

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

At Test, we answer questions about closing costs every day. Give us a call: 4054206125.

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