About Closing Costs

"Closing Costs" are the fees which cover the various services involved in the sale of a home. Sellers and buyers usually negotiate to determine who will pay different portions of these costs.

Many of the costs associated with buying residential real estate are associated with getting the mortgage loan. Since 1st Credential Mortgage Inc has extensive experience with closings and mortgages, we often explain the details of closing costs.

The Loan Estimate (LE)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs specified in the Loan Estimate are estimated based on our experience with mortgage loans, but costs usually change by small amounts between the LE and closing. We explain LEs with buyers every day, so we will be happy to answer your questions about closing costs.

We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, soon after you complete 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

• Costs associated with "originating" your loan
• Points — A fee paid to lower your interest rate (optional)
• Appraisal Fee
• Credit Report
• Interest Payment
• Escrow Account
• Various Taxes

Property Taxes

• Transfer Taxes & Recording Fees
• Insurance

Homeowners Insurance

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

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