How do Closing Costs Work?
"Closing Costs" are the fees that pay for various services involved when you sell or buy a house. Sellers & buyers negotiate to determine who will pay different portions of these closing costs.
As you'll see below, many of the buyer's closing costs cover the costs of originating the mortgage loan. Since Sky Apply Mortgage, Inc has extensive experience with mortgages & closings, we can help you understand your closing costs.
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 spelled out in the Loan Estimate are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that sometimes vary a little bit at the closing table.
We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, very soon after you complete your loan application. At Sky Apply Mortgage, Inc, 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
- Escrow Account
- Various Taxes
- Loan-related costs
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Pulling Your Credit Report
- Up-front Interest Payment
Property Taxes
- Transfer Taxes and Recording Fees
- Insurance
Homeowners Insurance
- Title Insurance
- Flood / Quake Insurance
- Private Mortgage Insurance (PMI)
At Sky Apply Mortgage, Inc, we answer questions about closing costs every day. Call us at (813) 200-7931.