How do Closing Costs Work?

Certain standard costs are related to closing the sale of a home. Buyers and sellers almost always share these costs, as specified in the sales contract.

As you'll see below, many of the costs result from getting your loan. Since Power Purchase Mortgage has extensive experience with closings & mortgages, we can help you understand your closing costs.

Loan Estimates (LEs)

Soon after you submit your application, we will provide you with the "Loan Estimate" of your closing costs. The closing costs specified in the Loan Estimate are estimated based on Power Purchase Mortgage's experience with mortgage loans, but costs usually change a little bit between delivery of the Loan Estimate (LE) and closing. We answer questions about closing costs every day at Power Purchase Mortgage, so please feel free to ask if we can help answer your questions.

Below is a generic list of costs for buying a home. We will provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Power Purchase Mortgage can help you understand closing costs. Call us at (877) 226-8191.

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