How do Closing Costs Work?

Every home sale incurs fixed costs. Buyers customarily incur these costs, as specified in the real estate sales contract, however, depending on the contract the seller may have to split a portion of the closing costs. "Closing Costs" are the fees which pay for various services involved when you sell or buy a house. These fees might be paid directly or indirectly by crediting the loan.

As you'll see below, many of the buyer's closing costs are related to the costs of getting the mortgage loan. At Metro Mortgage, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your estimate.

Obtaining The Loan Estimate

Buyers will receive a Loan Estimate within three days from when the loan application is submitted to the lender. The Loan Estimate details information like estimated interest rates, payments and fees, closing costs and more. This estimate is not an approval, rather it's the first step toward obtaining your loan.

We go over estimates with buyers almost every day, so we'd be glad to answer your questions about closing costs.

Below you'll find a fairly general list of closing costs. We will always provide a specific list of your closing costs when we deliver your estimate.

Standard Closing Costs

• Points — A fee paid to lower your mortgage interest rate (optional)
• Appraisal Fee
• Getting Your Credit Report
• Up-front Interest Payment
• Escrow Fees
• Loan-related costs

• Recording Fees and Transfer Taxes
• Insurance

• Flood or Earthquake Insurance
• Private Mortgage Insurance (PMI)
• Title Insurance