How do Closing Costs Work?
Certain standard costs are related to closing the sale of a home. Sellers and buyers customarily share these closing costs, as specified in the real estate sales contract.
As indicated below, many of the buyer's closing costs are related to the costs of originating the loan. At New Millennium Mortgage Co. NMLS: 331173, we have extensive experience in mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your "Loan Estimate".
The Loan Estimate (LE)
Very soon after you apply for a loan, we'll provide you with the "Loan Estimate" of your costs. This closing cost estimate comes out of our past experience. It's important to note that while our LEs are very accurate, we cannot always estimate your closing costs to the penny. We will be glad to review the "Loan Estimate," answering questions and highlighting costs that sometimes vary a little bit at closing.
Below is a fairly generic list of costs for buying a home. We will always provide a specific list of your closing costs when we provide your Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Escrow Account
- Various Taxes
- Costs associated with "originating" your loan
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Costs
- Obtaining Your Credit Report
- Up-front Interest Payment
Property Taxes
- Insurance
- Recording Fees and Transfer Taxes
Homeowners Insurance
- Title Insurance
- Flood or Earthquake Insurance
- Private Mortgage Insurance (PMI)
At New Millennium Mortgage Co. NMLS: 331173, we answer questions about closing costs every day. Give us a call at (941) 366-5800.