Closing Costs

There are certain standard costs associated with a new mortgage. For purchase transactions, these fees are split between the buyer and the seller, as spelled out in the sales contract.

I will walk you through the closing costs, answering any questions you may have explaining which costs are decreed by law to be yours and which are negotiable.

Fees Worksheet

Borrowers will receive a "Fees Worksheet" of closing costs shortly after the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience.  I will be glad to review the "Fees Worksheet" with you and answer any questions you might have.

Good Faith Estimate

Buyers will also receive a "Good Faith Estimate" of the abbreviated final costs shortly after the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and will include summary and detailed information regarding your mortgage loans final costs.  As we will be unaware who your attorney is, what the tax and insurance information is on the property, and how many months of the tax and insurance will be required for the escrow account, estimates will be provided as required by law.     

Typical Final Costs

There are certain standard costs associated with closing all of the mortgages we support.  As closing costs can very from lender to lender, your greatest savings will be with a lower interest rate on your new mortgage.  A 0.125% lower interest rate can save you thousands of dollars during the lifetime of the mortgage which is dependant on your total loan amount.  Your closing costs may be slightly different than these depending on whom the lender with the lowest interest rate is for your required mortgage program. 

There are 4 parts to your final costs:

Government Appraisal/Appraisal Management Company Fee: $285 - $660 (Dependiong on the value of the house and the appraisal type required).

Escrow Account Funding: Approximately 7 months of taxes and insurance. (You do not lose these funds. The lender uses these funds to pay your taxes and insurance when they become due. If you qualify and choose to waive the escrow account, all of our lenders charge a one time fee of approximately 0.25% of the loan amount). 

Attorney and Title Work: This is dependent on the value of your house and the amount of the mortgage (You may select your own attorney and these costs are negotiated between you and them).

Remaining Actual Closing Costs (Underwriting, Processing, Credit Report, DU Findings, etc.): Approximately $1,815 (Depending on which lender has the lowest rates at the time we submit your mortgage application.  Origination and discount points/fees are normally not charged to you unless you are requiring a special mortgage program or you are buying down the interest rate.  The origination and discount points/fees is usually a percentage of your loan amount.  Not having to pay these can save you thousands of dollars in closing costs!).