What are Closing Costs?
Every home sale incurs certain fixed costs. Buyers and sellers almost always split these closing costs, as specified in the real estate sales contract.
As the list below indicates, many of the costs result from getting your mortgage loan. At Power Purchase Mortgage, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive report on costs related to your mortgage in your "Loan Estimate".
Loan Estimates (LEs)
Very soon after you apply for a loan, we will provide you with a "Loan Estimate" of your costs. The closing costs specified in the LE are estimated based on Power Purchase Mortgage's experience with mortgage loans, but costs usually change by small amounts between delivery of the LE and closing. We go over LEs with buyers almost every day, so we will be happy to answer your questions about closing costs.
We've provided a general list of these costs below, but we will give you a specific list of closing costs, with amounts, soon after you have completed your loan application. At Power Purchase Mortgage, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
Loan-Related Costs
- Appraisal Costs
- Obtaining Your Credit Report
- Up-front Interest Payment
- Escrow Fees
- Taxes
- Loan Origination Fee
- Points — lower your mortgage interest rate (optional)
Property Taxes
- Insurance
- Recording Fees & Transfer Taxes
Homeowners Insurance
- Title Insurance
- Flood or Earthquake Insurance
- Private Mortgage Insurance (PMI)
Power Purchase Mortgage can answer questions about these closing costs. Give us a call: (800)593-0143.