How do Closing Costs Work?
Certain standard costs are related to closing the sale of a home. Buyers and sellers customarily split these costs, as specified in the sales contract.
As you'll see below, many of the buyer's closing costs are related to the costs of originating the loan. At Mortgage Headquarters of Missouri, Inc, we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of 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. The closing costs enumerated in the Loan Estimate are estimated based on Mortgage Headquarters of Missouri, Inc's experience with mortgage loans, but costs usually vary a little bit between the LE and closing. We answer buyers' questions about closing costs every day at Mortgage Headquarters of Missouri, Inc, so don't hesitate to contact us if we can help answer your questions.
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 have completed your application. At Mortgage Headquarters of Missouri, Inc, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
Loan-Related Costs
- Escrow Fees
- Taxes
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Fee
- Pulling Your Credit Report
- Up-front Interest Payment
Property Taxes
- Insurance
- Recording Fees and Transfer Taxes
Homeowners Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance if applicable
Mortgage Headquarters of Missouri, Inc can answer questions about these closing costs. Give us a call at 5733029990.