Closing Costs for Residential Real Estate Transactions
"Closing Costs" are the fees which pay for various services involved when you sell or buy residential real estate. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs.
As indicated below, many of the buyer's closing costs cover the costs of originating the mortgage loan. At Greystone Loans, Inc., we are highly experienced in mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".
The Loan Estimate (Also known as the LE)
Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between delivery of the Loan Estimate (LE) and closing. We explain LEs with buyers almost every day, so we'd be glad to answer any questions you have about closing costs.
We've provided a general list of closing costs below, but we'll give you a specific list of closing costs, with amounts, soon after you complete your loan application. At Greystone Loans, Inc., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing CostsLoan-Related Costs
- Appraisal Fee
- Getting Your Credit Report
- Up-front Interest Payment
- Escrow Fees
- Costs related to "originating" your loan
- Points — A fee paid to lower your mortgage interest rate (optional)
- Recording Fees and Transfer Taxes
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance