A Quick Guide to Closing Costs
Closing costs are a common part of pretty much every real estate transaction. It's important to factor in all costs into your budget when buying a home to ensure there are no financial surprises at the closing table. However, many new home buyers often find out too late that they're expected to show up to closing with money in hand for such fees. Unfortunately, this happens more often than it should. So, in order to ensure you're prepared upfront for all possible costs related to buying a home, we're sharing with you what standard closing costs there typically are so you're prepared to cover them at your closing.
What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. This could be the cost to pay for the inspection or appraisal if it wasn't agreed in the contract that the seller would cover those expenses, or it could be any title service fees that weren't included in the loan amount. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs. Many of the closing costs result from getting your mortgage. Since Mortgage Headquarters of Missouri, Inc is highly experienced with closings and mortgages, we often explain the details of closing costs.
Loan Estimates (LEs)
Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We answer buyers' questions about closing costs every day at Mortgage Headquarters of Missouri, Inc, so please be sure to ask if we can help answer your questions.
Below is a fairly generic list of closing costs. Your lender should provide a more specific list of your closing costs when you receive the Loan Estimate.
Standard Closing Costs
Loan-Related Costs
Various Taxes
Loan-related costs
Points — A fee paid to lower your interest rate (optional)
Appraisal Costs
Credit Report
Up-front Interest Payment
Escrow Account
Homeowners Insurance
Private Mortgage Insurance (PMI)
Title Insurance
Flood or Earthquake Insurance if applicable
Property Taxes
Transfer Taxes and Recording Fees
Insurance
Trust MHQ Mortgage Headquarters to Guide You
By knowing the typical closing costs to expect upfront, you'll be less likely to show up to your closing empty handed and shocked. Keep in mind that special circumstances may require additional costs, but your lender should provide you with a list of any other costs to expect. If you have questions pertaining to mortgage lending and closing costs, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have the answers you need to be prepared. We've been in the mortgage industry for more than 20 years and can help guide you through the mortgage lending and closing process!
What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. This could be the cost to pay for the inspection or appraisal if it wasn't agreed in the contract that the seller would cover those expenses, or it could be any title service fees that weren't included in the loan amount. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs. Many of the closing costs result from getting your mortgage. Since Mortgage Headquarters of Missouri, Inc is highly experienced with closings and mortgages, we often explain the details of closing costs.
Loan Estimates (LEs)
Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We answer buyers' questions about closing costs every day at Mortgage Headquarters of Missouri, Inc, so please be sure to ask if we can help answer your questions.
Below is a fairly generic list of closing costs. Your lender should provide a more specific list of your closing costs when you receive the Loan Estimate.
Standard Closing Costs
Loan-Related Costs
Various Taxes
Loan-related costsPoints — A fee paid to lower your interest rate (optional)
Appraisal Costs
Credit Report
Up-front Interest Payment
Escrow Account
Homeowners Insurance
Private Mortgage Insurance (PMI)
Title Insurance
Flood or Earthquake Insurance if applicable
Property Taxes
Transfer Taxes and Recording Fees
Insurance
Trust MHQ Mortgage Headquarters to Guide You
By knowing the typical closing costs to expect upfront, you'll be less likely to show up to your closing empty handed and shocked. Keep in mind that special circumstances may require additional costs, but your lender should provide you with a list of any other costs to expect. If you have questions pertaining to mortgage lending and closing costs, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have the answers you need to be prepared. We've been in the mortgage industry for more than 20 years and can help guide you through the mortgage lending and closing process!
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