How do Closing Costs Work?
Every home sale incurs fixed costs. Buyers and sellers almost always split these closing costs, as the real estate sales contract specifies.
Many of the closing costs associated with buying a house are associated with getting a mortgage loan. Since Coastal Mortgage Corp. is highly experienced with closings and mortgages, we often explain the details of closing costs.
The Loan Estimate (LE)
Buyers will 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 Coastal Mortgage Corp.'s experience with mortgage loans, but costs usually change by small amounts between delivery of the LE and closing. We field buyers' questions about closing costs every day at Coastal Mortgage Corp., so please be sure to ask if we can help answer your questions.
We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you complete your loan application. At Coastal Mortgage Corp., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Getting YourCredit Report
- Interest Payment
- Escrow Account
- Various Taxes
- Loan-related costs
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Costs
- Recording Fees and Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance
Coastal Mortgage Corp. can help you understand closing costs. Give us a call at 504-866-5626.
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