How do Closing Costs Work?

Every home sale incurs certain fixed costs. Buyers almost always pay these costs, as the real estate sales contract specifies, however, depending on the contract the seller may be required to pay some of the closing costs. "Closing Costs" are the fees which cover the various services involved in the sale of residential real estate. These fees might be paid directly or indirectly by increasing the loan amount or charging a higher interest rate.

As indicated below, many of the buyer's closing costs cover the costs of originating the mortgage loan. Since Affordable Lending LLC has extensive experience with closings and mortgages, we can help you understand your closing costs.

Obtaining The Loan Estimate

Within three days after you apply for a loan, we will give you a Loan Estimate. The Loan Estimate details information like insurance and taxes, closing costs, monthly payments and more. Getting an estimate doesn't mean you've been approved, but it's the first step toward securing your loan.

We will be glad to review the estimate, answering questions and highlighting costs that can vary a little bit at closing.

Below you'll find a general list of closing costs. We will always provide a specific list of your closing costs when we give you an estimate.

Standard Closing Costs

• Costs associated with "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Fee
• Getting Your Credit Report
• Up-front Interest Payment
• Escrow Account

• Transfer Taxes and Recording Fees
• Insurance

• Flood or Quake Insurance
• Private Mortgage Insurance (PMI)
• Title Insurance