Closing Costs for Residential Real Estate Transactions

Certain standard costs are associated with closing the sale of a house. Buyers customarily pay these closing costs, as the real estate sales contract specifies, however, depending on the contract the seller will have to cover a portion of the closing costs. "Closing Costs" are the fees that pay for the various services involved when you sell or buy residential real estate. These fees are either paid directly or indirectly by crediting the loan.

As indicated below, many of the buyer's costs cover the costs of getting the loan. At Strategic Mortgage, LLC, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your estimate.

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 gives you information like insurance and taxes, closing costs, monthly payments 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 your questions and pointing out costs that can change slightly at the closing table.

Below is a fairly general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we provide your estimate.

Standard Closing Costs

• Appraisal Costs
• Getting Your Credit Report
• Up-front Interest Payment
• Escrow Fees
• Loan-related costs
• Points — These are costs you pay up-front to lower your interest rate (optional)

• Recording Fees & Transfer Taxes
• Insurance

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