What are Closing Costs?

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

As you'll see below, many of the costs result from getting your loan. At Power Purchase Mortgage, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you submit your application, we will give you the "Loan Estimate" of your costs. The closing costs enumerated in the Loan Estimate are estimated based on our experience with mortgage loans, but costs often change by small amounts between delivery of the Loan Estimate (LE) and closing. We explain Loan Estimates with buyers almost every day, so we will be happy to answer your questions about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Appraisal Fee
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — lower your interest rate (optional)
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)

Power Purchase Mortgage can help you understand closing costs. Call us: 8005930143.

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