How do Closing Costs Work?

"Closing Costs" are the fees that cover the various services involved when you sell or buy a house. Sellers & buyers usually negotiate to determine who will pay different portions of these closing costs.

Many of the closing costs associated with buying a house are associated with getting a loan. At Yamini Patel, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive list of mortgage-related costs in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you submit your application, we will give you a "Loan Estimate" of your closing costs. This closing cost estimate is based on the loan officer's past experience. It's important to note that while our LEs are very accurate, we cannot always estimate your closing costs to the penny. We handle buyers' questions about these costs every day at Yamini Patel, so please feel free to ask if you have questions.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you have completed your loan application. At Yamini Patel, 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
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
  • Costs related to "originating" your loan
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At Yamini Patel, we answer questions about closing costs every day. Call us: (832) 730-2000.

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