What are Closing Costs?

"Closing Costs" are the fees which cover the various services involved when you sell or buy residential real estate. Sellers and buyers usually negotiate the payment of these closing costs.

As you'll see below, many of the buyer's closing costs are related to the costs of originating the loan. At 1st Credential Mortgage Inc, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Loan Estimate".

Loan Estimate (LE)

Buyers will receive a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. We base this cost estimate on our many years of past experience. It's important to note that while our LEs are very accurate, we cannot always estimate your costs to the penny. We explain Loan Estimates with buyers almost every day, so we'd be glad to answer any questions you have about closing costs.

Below is a generic list of closing costs. We will always provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Taxes
  • Loan Origination Fee
  • Points — lower your interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

1st Credential Mortgage Inc can answer questions about these closing costs. Call us at (281) 778-0805.

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