How do Closing Costs Work?
"Closing Costs" are the fees which cover various services involved in the sale of a home. Sellers & buyers often negotiate to determine who will pay different portions of these costs.
As indicated below, many of the buyer's closing costs cover the costs of originating the loan. At Glendale Mortgage, we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on mortgage-related closing costs in your "Loan Estimate".
Loan Estimate (LE)
Very soon after you submit your application, we will give you a "Loan Estimate" of your closing costs. We base this cost estimate on our extensive past experience. Please note that while our LEs are very precise, we can't always predict closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that can change slightly at closing.
We've provided a general list of these costs below, but we will give you a specific list of closing costs, with amounts, very soon after you complete your application. At Glendale Mortgage, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Loan Origination Fee
- Points — lower your mortgage interest rate (optional)
- Transfer Taxes and Recording Fees
- Title Insurance
- Flood / Earthquake Insurance
- Private Mortgage Insurance (PMI)
At Glendale Mortgage, we answer questions about closing costs every day. Give us a call: 610-853-6500.