What are Closing Costs?

There are certain standard costs related to closing the sale of a house. Buyers and sellers usually split these closing costs, as the real estate sales contract specifies.

As you'll see below, many of the closing costs result from getting your loan. Since Custom Lending Group has extensive experience with closings & mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Very soon after you apply for a loan, we will provide you with a "Loan Estimate" of your costs. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs often change a little bit between delivery of the Loan Estimate (LE) and closing. We will be glad to review the "Loan Estimate," answering questions and pointing out costs that sometimes vary a little bit at closing.

Below is a fairly general list of closing costs. We will always provide you with a specific list of your closing costs when we provide your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Various Taxes
  • Loan Origination Fee
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Obtaining Your Credit Report
  • Up-front Interest Payment
  • Escrow Fees
Property Taxes
  • Recording Fees & Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance

At Custom Lending Group, we answer questions about closing costs every day. Give us a call: 7072522700.

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Custom Lending Group

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