Understanding Closing Costs

There are certain standard costs associated with the purchase of a home or a refinance loan.

I will fully explain all of the closing costs, answering any questions you may have and explain what the costs are and discuss possible ways to reduce or defer any costs.

Good Faith Estimate

My Clients will receive a "Good Faith Estimate" of closing costs at the time the loan application is taken. This estimate is based on industry cost standards and the loan officer's past experience. I do my very best to include each and every cost, and to be conservative, I usually estimate high. In the case of a new purchase loan, the seller decides who the escrow and title companies are, so I may not have the most accurate cost data from those companies, but I will verify and update as soon as possible.

Standard Closing Costs

Loan Related Closing Costs (As Applicable)

• Loan Origination Fee (Optional)
• Discount Points (Optional)
• Appraisal Fee
• Credit Report
• Lender / Bank Administration Fees

Escrow / Title Insurance / Recording / Misc.

• Escrow Fees (Various)
• Title Insurance
• Recording Fees
• Transfer Taxes
• HOA Transfer Fees
• Reconveyance / Statement Fees

Prepaids / Prorations

• Prepaid Interest
• Prorated Property Taxes
• Impounds
• Hazard (Fire) Insurance Premium
• Private Mortgage Insurance (PMI)

NOTE: Prepaids/prorations are not a "cost" per se, but a cash requirement that must be taken into consideration.