What are Closing Costs?

"Closing Costs" are the fees which pay for the various services involved when you sell or buy residential real estate. Sellers & buyers negotiate to decide how to share these costs.

As you'll see below, many of the buyer's closing costs cover the costs of getting the loan. At 1st Credential Mortgage Inc, we have extensive experience in mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Loan Estimate".

Loan Estimate (Also known as the LE)

Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. We base this cost estimate on our extensive past experience. Please note that while our LEs are very accurate, we can't always estimate your closing costs to the penny. We field buyers' questions about these costs every day at 1st Credential Mortgage Inc, so please feel free to contact us if you have questions.

We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you have completed your loan application. At 1st Credential Mortgage Inc, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

• Appraisal Fee
• Credit Report
• Interest Payment
• Escrow Fees
• Taxes
• Costs related to "originating" your loan
• Points — lower your mortgage interest rate (optional)

Property Taxes

• Insurance
• Transfer Taxes and Recording Fees

Homeowners Insurance

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

1st Credential Mortgage Inc can help you understand closing costs. Call us: (281) 778-0805.