How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of a house. Sellers & buyers negotiate the payment of these costs.

As indicated below, many of the closing costs result from getting your mortgage. Since The Lending Source has extensive experience with mortgages and closings, we are closing cost experts.

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 specified in the LE are estimated based on our experience with mortgage loans, but costs often change by small amounts between the Loan Estimate (LE) and closing. We answer questions about closing costs every day at The Lending Source, so please be sure to ask if you have questions.

We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, soon after you have completed your loan application. At The Lending Source, 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
  • Interest Payment
  • Escrow Account
  • Taxes
  • Loan Origination Fee
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)

The Lending Source can answer questions about these closing costs. Give us a call at 9736012122.

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