How do Closing Costs Work?

Certain standard costs are related to closing the sale of a house. Buyers customarily pay these closing costs, as the real estate sales contract specifies, however, depending on State law the seller will have to cover some of the closing costs. "Closing Costs" are the fees that pay for the various services involved in the sale of a house. These fees might be paid directly or indirectly by increasing the loan amount or charging a higher interest rate.

Many of the closing costs associated with buying a house are associated with getting the mortgage loan. Since Metro Mortgage Lending has extensive experience with closings & mortgages, we often explain the details of closing costs.

Getting The Loan Estimate

Buyers will receive a Loan Estimate by three days from when the loan application is submitted to the lender. The Loan Estimate provides you with information like estimated interest rates, payments and fees, closing costs and more. This estimate is not an approval, rather it's the first step toward getting your loan.

We will be glad to review the estimate, answering questions and pointing out costs that can change slightly at the closing table.

We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, soon after you have completed your application. At Metro Mortgage Lending, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

• Points — lower your mortgage interest rate (optional)
• Appraisal Costs
• Getting Your Credit Report
• Interest Payment
• Escrow Fees
• Loan-related costs

• Recording Fees & Transfer Taxes
• Insurance

• Private Mortgage Insurance (PMI)
• Title Insurance
• Flood / Earthquake Insurance if applicable