How do Closing Costs Work?

All residential real estate sales involves fixed costs. Sellers and buyers usually split these costs, as specified in the real estate sales contract.

As indicated below, many of the costs result from getting your mortgage loan. Since 1st Credential Mortgage Inc is highly experienced with closings and mortgages, we often explain the details of closing costs.

Loan Estimate (Also known as the LE)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The cost estimate is based on our past experience. It's important to note that while our LEs are very accurate, we cannot always predict your closing costs to the penny. We go over LEs with buyers every day, so we'd be glad to answer your questions about closing costs.

We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, very soon after you have completed your application. At 1st Credential Mortgage Inc, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

• Costs related to "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Fee
• Credit Report
• Interest Payment
• Escrow Account
• Various Taxes

Property Taxes

• Insurance
• Recording Fees & Transfer Taxes

Homeowners Insurance

• Flood / Earthquake Insurance if applicable
• Private Mortgage Insurance (PMI)
• Title Insurance

1st Credential Mortgage Inc can answer questions about these closing costs. Give us a call: (281) 778-0805.