As your Realtor negotiates the sales contract for you, they should not only work to get the sales price you want, they should also work to limit the number of closing costs for which you will be responsible. This is especially true for the costs associated with an Owners Title Policy and the transfer taxes imposed by the state and county.
Here are some of the typical closing costs incurred.
Loan Estimate There new forms that went into use on October 1, 2015. It is now a multi page form that is very detailed. You may find it needs more explanation than the old form, and I will be happy to help you with that. Borrowers will receive a "Loan Estimate" of closing costs shortly after the loan application is completed. Most of your fees cannot not INCREASE from application to closing. The fees that can increase can only increase for the exact amount of the service incurred. An example of this would be an additional appraisal fee charged by the appraiser for a service that the underwriter might require, such as a final inspection after some repairs have been made. If updates to the credit report are required, those would also incur an additional fee. Also if you choose to you a different title company for the closing than we have used in the estimate, those fees will be adjusted to exactly what that title company charges. The estimate is based on the lender that we propose to use at the time of application, which may change before we close, but your costs will not. We charge you only whatever costs we are charged from the various vendors used for processing the loan. We are continually looking for the vendors that offer the best service and best rates, so we can pass on any savings to you. Several of the required services are no longer ordered by any loan officer at any mortgage business or bank. They are offered and chosen by the lenders and therefore we do not have control of those costs. We do strive to use the lenders with the lowest fees, when they have the best programs and rates for your needs. I will be glad to review the "Loan Estimate," answering questions and highlighting and costs you don't understand.
Closing Disclosure Another new form is the "Closing Disclosure". You will receive this when the loan is ready to close. These will be exact fees for the closing. After you receive and acknowledge this form there is now a 3 day waiting period before the loan is able to close.
Standard Closing Costs
Loan Origination Fee (optional)
Underwriting or Administration Fee from the Lender
Transfer Taxes and Recording Fees
Flood Insurance (where required)
Private Mortgage Insurance (PMI)
Closing Fee from the Title Company
Pest Inspection Fee
Closing a mortgage will incur some fees. On a purchase these fees are split between the buyer and the seller, as negotiated in the sales contract. For a refinance transaction, the fees are paid by the borrower and often included in the loan amount or the interest rate.