How do Closing Costs Work?

Every home sale incurs fixed costs. Sellers and buyers almost always share these closing costs, as the sales contract specifies.

Many of the costs associated with buying a home are associated with getting the mortgage. At Selectplus Lending, we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. We base this cost estimate on our extensive past experience. It's important to note that while our LEs are very precise, we can't always predict your closing costs to the penny. We explain LEs with buyers every day, so we'd be glad to answer any questions you have about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Taxes
  • Loan-related costs
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At Selectplus Lending, we answer questions about closing costs every day. Give us a call: (818)645-7035.

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