How do Closing Costs Work?

"Closing Costs" are the fees that pay for the various services involved when you sell or buy a house. Sellers & buyers negotiate to decide how to split these costs.

As the list below indicates, many of the costs result from getting your loan. Since Power Purchase Mortgage is highly experienced with closings & mortgages, we are closing cost experts.

Loan Estimate (LE)

Very soon after you submit your application, we'll give you the "Loan Estimate" of your costs. The closing costs enumerated in the Loan Estimate are estimated based on Power Purchase Mortgage's experience with mortgage loans, but costs often change a little bit between the Loan Estimate (LE) and closing. We review LEs with buyers every day, so we'd be glad to answer your questions about closing costs.

Below you'll find a general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Up-front Interest Payment
  • Escrow Account
  • Taxes
  • Costs related to "originating" your loan
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)

Power Purchase Mortgage can help you understand closing costs. Give us a call: (800)593-0143.

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