How do Closing Costs Work?

All residential real estate sales incurs certain fixed costs. Sellers and buyers almost always share these closing costs, as the real estate sales contract specifies.

As you'll see below, many of the costs result from getting your loan. At Yamini Patel, we have extensive experience in mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Loan Estimate".

Loan Estimates (LEs)

Very shortly after you submit your application, we'll provide you with a "Loan Estimate" of your costs. The closing costs specified in the LE are estimated based on Yamini Patel's experience with mortgage loans, but costs usually change a little bit between the LE and closing. We will be glad to review the "Loan Estimate," answering questions and pointing out costs that can change slightly at the closing table.

Below you'll find a fairly general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Obtaining Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

Yamini Patel can answer questions about these closing costs. Give us a call: (832) 730-2000.

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