How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of a home. Buyers and sellers almost always negotiate to determine who will pay different portions of these closing costs.

Many of the closing costs associated with buying a house are associated with getting a loan. At ADVISORY MORTGAGE, we are highly experienced in mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Very shortly after you submit your application, we will give you a "Loan Estimate" of your costs. The closing costs spelled out in the LE are estimated based on ADVISORY MORTGAGE's experience with mortgage loans, but costs usually vary a little bit between the LE and closing. We handle buyers' questions about these costs every day at ADVISORY MORTGAGE, so please feel free to ask if you have questions.

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

Standard Closing Costs

Loan-Related Costs

• Escrow Account
• Various Taxes
• Loan-related costs
• Points — These are costs you pay up-front to lower your interest rate (optional)
• Appraisal Fee
• Credit Report
• Up-front Interest Payment

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

• Private Mortgage Insurance (PMI)
• Title Insurance
• Flood or Quake Insurance if applicable

At ADVISORY MORTGAGE, we answer questions about closing costs every day. Call us at 8102292820.