What are Closing Costs?
"Closing Costs" are the fees which cover the various services involved when you sell or buy a home. Buyers & sellers negotiate to determine who will pay different portions of these costs.
As indicated below, many of the buyer's costs cover the costs of originating the mortgage loan. At American Residential Real Estate Financial, Inc., we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of closing costs related to your mortgage in your "Loan Estimate".
Loan Estimates (LEs)
Soon after you apply for a loan, we will give you the "Loan Estimate" of your closing costs. The closing costs enumerated in the LE are estimated based on American Residential Real Estate Financial, Inc.'s experience with mortgage loans, but costs often change by small amounts between the LE and closing. We will be glad to review the "Loan Estimate," answering questions and pointing out costs that can vary a little bit at closing.
We've provided a general list of these costs below, but we'll give you a specific list of closing costs, with amounts, very soon after you have completed your application. At American Residential Real Estate Financial, Inc., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing CostsLoan-Related Costs
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Loan-related costs
- Points — A fee paid to lower your interest rate (optional)
- Recording Fees and Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance