How do Closing Costs Work?

There are certain standard costs associated with closing the sale of a home. Sellers and buyers customarily share these costs, as specified in the real estate sales contract.

As the list below indicates, many of the closing costs result from getting your loan. Since 1st Credential Mortgage Inc has extensive experience with closings and mortgages, we are closing cost experts.

The Loan Estimate (LE)

Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs spelled out in the LE are estimated based on 1st Credential Mortgage Inc's experience with mortgage loans, but costs usually vary a little bit between the LE and closing. We go over LEs with buyers almost every day, so we will be happy to answer any questions you have about closing costs.

Below you'll find a 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

• Taxes
• Costs associated with "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Costs
• Pulling Your Credit Report
• Interest Payment
• Escrow Account

Property Taxes

• Insurance
• Transfer Taxes & Recording Fees

Homeowners Insurance

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

1st Credential Mortgage Inc can answer questions about these closing costs. Call us: 2817780805.