About Closing Costs

Every home sale involves costs. Buyers usually incur these closing costs, as the real estate sales contract specifies, however, depending on the contract the seller will have to cover a portion of the closing costs. "Closing Costs" are the fees which pay for the various services involved in the sale of residential real estate. These fees are either paid out of pocket or indirectly by increasing the loan amount or charging a higher interest rate.

As the list below indicates, many of the closing costs result from getting your mortgage loan. At Patricia Kotz, we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your estimate.

Getting The Loan Estimate

Three days after you apply for a loan, we'll give you a Loan Estimate. The Loan Estimate gives you information like closing costs, taxes, insurance, estimated interest rate monthly payment and more. This estimate is not an approval, but it's the first step toward getting your loan.

We review estimates with buyers every day, so we'd be glad to answer your questions about closing costs.

Below is a fairly general list of closing costs. We will provide a specific list of your closing costs when we deliver your estimate.

Standard Closing Costs

• Points — lower your interest rate (optional)
• Appraisal Costs
• Obtaining Your Credit Report
• Up-front Interest Payment
• Escrow Account
• Costs related to "originating" your loan

• Recording Fees & Transfer Taxes
• Insurance

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