About Closing Costs

All residential real estate transactions incurs certain fixed costs. Sellers and buyers customarily split these costs, as the real estate sales contract specifies.

Many of the closing costs associated with buying a home are associated with getting a mortgage loan. Since Power Purchase Mortgage is highly experienced with closings & mortgages, we often explain the details of closing costs.

The Loan Estimate (Also known as the LE)

Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs usually vary by small amounts 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 can change slightly at closing.

Below you'll find a generic list of costs for buying a home. We will provide you with a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Loan Origination Fee
  • Points — lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Various Taxes
Property Taxes
  • Insurance
  • Transfer Taxes and Recording Fees
Homeowners Insurance
  • Flood / Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Power Purchase Mortgage can help you understand closing costs. Call us at (800)593-0143.

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