How do Closing Costs Work?

"Closing Costs" are the fees which pay for various services involved when you sell or buy a home. Buyers and sellers negotiate to decide how to share these costs.

As indicated below, many of the costs result from getting your loan. Since New Millennium Mortgage Co. NMLS: 331173 has extensive experience with mortgages and closings, we often explain the details of closing costs.

Loan Estimates (LEs)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs spelled out in the Loan Estimate are estimated based on our experience with mortgage loans, but costs often vary a little bit between the LE and closing. We go over Loan Estimates with buyers every day, so we will be happy to answer the you have about closing costs.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you complete your application. At New Millennium Mortgage Co. NMLS: 331173, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

• Appraisal Costs
• Getting Your Credit Report
• Interest Payment
• Escrow Account
• Taxes
• Loan-related costs
• Points — lower your interest rate (optional)

Property Taxes

• Transfer Taxes and Recording Fees
• Insurance

Homeowners Insurance

• Title Insurance
• Flood / Earthquake Insurance if applicable
• Private Mortgage Insurance (PMI)

New Millennium Mortgage Co. NMLS: 331173 can answer questions about these closing costs. Give us a call: (941) 366-5800.