How do Closing Costs Work?

“Closing Costs” are the fees which pay for various services involved in the sale of a home. Buyers & sellers almost always negotiate to decide how to split these costs.

As you’ll see below, many of the buyer’s costs cover the costs of getting the mortgage loan. Since The Mortgage Exchange Service LLC is highly experienced with closings and mortgages, we are closing cost experts.

Loan Estimates (LEs)

Buyers get a “Loan Estimate” of closing costs at the time the loan application is submitted to the lender. We base this cost estimate on our many years of past experience. It’s important to note that while our LEs are very precise, we cannot always estimate your costs to the penny. We explain LEs with buyers every day, so we’d be glad to answer the you have about closing costs.

Below is a general list of costs for buying a home. We will always provide a specific list of your closing costs when we deliver your Loan Estimate.

Loan-Related Costs

• Appraisal Costs
• Credit Report
• Interest Payment
• Escrow Fees
• Taxes
• Loan-related costs
• Points — These are costs you pay up-front to lower your interest rate (optional)

Property Taxes

• Insurance
• Recording Fees & Transfer Taxes

Homeowners Insurance

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

Mortgage Questions?

The Mortgage Exchange Service LLC can walk you through the pitfalls of getting a reverse mortgage.