How do Closing Costs Work?
Every home sale incurs certain fixed costs. Sellers and buyers almost always share these closing costs, as specified in the real estate sales contract.
As you'll see below, many of the costs result from getting your loan. At Coastal Mortgage Corp., we have extensive experience in mortgage lending, so we can provide you with a comprehensive list of closing costs related to your mortgage in your "Loan Estimate".
The Loan Estimate (Also known as the LE)
Soon after you submit your application, we'll give you the "Loan Estimate" of your costs. The closing cost estimate is based on our past experience. It's important to note that while our LEs are very accurate, we cannot always estimate your closing costs to the penny. We go over LEs with buyers every day, so we are happy to answer any questions you have about closing costs.
Below is a fairly generic list of costs for buying a home. We will always provide you with a specific list of your closing costs when we deliver your Loan Estimate.
Standard Closing Costs
- Interest Payment
- Escrow Account
- Various Taxes
- Costs related to "originating" your loan
- Points — lower your mortgage interest rate (optional)
- Appraisal Fee
- Getting YourCredit Report
- Recording Fees & Transfer Taxes
- Flood or Earthquake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
Coastal Mortgage Corp. can help you understand closing costs. Give us a call: 504-866-5626.
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