How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved when you sell or buy a home. Sellers & buyers usually negotiate to decide how to share these closing costs.

Many of the costs associated with buying residential real estate are associated with getting a mortgage loan. At Coastal Mortgage Corp., we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of costs related to your mortgage in your "Loan Estimate".

The Loan Estimate (LE)

Soon after you submit your application, we'll provide you with the "Loan Estimate" of your closing costs. We base this cost estimate on our extensive past experience. It's important to note that while our LEs are very accurate, we can't always estimate your costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that sometimes vary a little bit at closing.

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 have completed your loan application. At Coastal Mortgage Corp., 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
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan Origination Fee
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Fee
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance if applicable

At Coastal Mortgage Corp., we answer questions about closing costs every day. Call us at 504-866-5626.

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