What are Closing Costs?

All residential real estate transactions involves certain costs. Buyers and sellers almost always split these costs, as the sales contract specifies.

As indicated below, many of the closing costs result from getting your loan. Since Tenby J. Dahman has extensive experience with mortgages and closings, we often explain the details of closing costs.

Loan Estimate (LE)

Buyers will receive 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 Tenby J. Dahman's experience with mortgage loans, but costs often change a little bit between the LE and closing. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that can change slightly at closing.

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

Standard Closing Costs

Loan-Related Costs

• Up-front Interest Payment
• Escrow Account
• Various Taxes
• Loan-related costs
• Points — A fee paid to lower your mortgage interest rate (optional)
• Appraisal Fee
• Credit Report

Property Taxes

• Insurance
• Recording Fees & Transfer Taxes

Homeowners Insurance

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

Tenby J. Dahman can answer questions about these closing costs. Call us: 3038627760.