What are Closing Costs?
There are certain standard costs associated with closing the sale of a house. Sellers and buyers usually share these closing costs, as specified in the real estate sales contract.
Many of the closing costs associated with buying a house are associated with getting a mortgage loan. Since Tenby J. Dahman is highly experienced with mortgages & closings, we often explain the details of closing costs.
Loan Estimate (Also known as the LE)
Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs usually change a little bit between delivery of the Loan Estimate (LE) and closing. We answer questions about these costs every day at Tenby J. Dahman, so don't hesitate to contact us if you have questions.
We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, soon after you complete your application. At Tenby J. Dahman, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Credit Report
- Interest Payment
- Escrow Account
- Costs related to "originating" your loan
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Costs
- Transfer Taxes and Recording Fees
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance
Tenby J. Dahman can help you understand closing costs. Give us a call: 3038627760.