Don't Forget Closing Costs

Every home sale incurs certain fixed costs. Buyers usually pay these closing costs, as specified in the real estate sales contract, however, depending on State law the seller will have to cover a portion of the closing costs. "Closing Costs" are the fees which pay for 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 you'll see below, many of the buyer's costs cover the costs of originating the loan. Since Metro Mortgage has extensive experience with closings & mortgages, we can help you understand your closing costs.

The Loan Estimate

Buyers will receive a Loan Estimate within three days from when the loan application is submitted to the lender. The Loan Estimate provides you with information like insurance and taxes, closing costs, monthly payments and more. Getting an estimate doesn't mean you've been approved, rather it's the first step toward obtaining your loan.

We will be glad to review the estimate, answering your questions and highlighting costs that sometimes change slightly at closing.

Below you'll find a fairly general list of costs for buying a home. We will always provide a specific list of your closing costs when we provide your estimate.

Standard Closing Costs

• Loan Origination Fee
• Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
• Appraisal Fee
• Credit Report
• Up-front Interest Payment
• Escrow Account

• Insurance
• Transfer Taxes & Recording Fees

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