How do Closing Costs Work?

All residential real estate transactions involves fixed costs. Sellers and buyers usually split these costs, as the real estate sales contract specifies.

Many of the costs associated with buying a house are associated with getting a loan. At 1st Credential Mortgage Inc, we are highly experienced in mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Loan Estimate".

Loan Estimates (LEs)

Soon after you submit your application, we'll give you a "Loan Estimate" of your closing costs. The cost estimate is based on our past experience. It's important to note that while our LEs are very accurate, we can't always predict your closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that sometimes vary a little bit at the closing table.

Below you'll find a general list of closing costs. We will always provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs

• Various Taxes
• Loan-related costs
• Points — lower your mortgage interest rate (optional)
• Appraisal Costs
• Credit Report
• Interest Payment
• Escrow Account

Property Taxes

• Transfer Taxes & Recording Fees
• Insurance

Homeowners Insurance

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

At 1st Credential Mortgage Inc, we answer questions about closing costs every day. Call us: (281) 778-0805.