How do Closing Costs Work?

Every home sale incurs fixed costs. Buyers and sellers customarily split these costs, as specified in the real estate sales contract.

Many of the costs associated with buying a house are associated with getting a mortgage loan. Since Americn Hero Mortgage is highly experienced with mortgages & closings, we often explain the details of closing costs.

Loan Estimates (LEs)

Very shortly after you submit your application, we'll give you the "Loan Estimate" of your closing costs. This closing cost estimate comes out of our past experience. Please note that while our LEs are very accurate, we can't always estimate your closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that can change slightly at closing.

Below you'll find a generic list of costs for buying residential real estate. We will always provide you with a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

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

At Americn Hero Mortgage, we answer questions about closing costs every day. Call us: 754-202-4376.

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