What are Closing Costs?

Certain standard costs are associated with closing the sale of a house. Buyers almost always incur these costs, as specified in the sales contract, however, depending on State law the seller may be required to pay some of the closing costs. "Closing Costs" are the fees that pay for the various services involved in the sale of residential real estate. These fees can be paid out of pocket or indirectly by increasing the loan amount or charging a higher interest rate.

As you'll see below, many of the buyer's costs are related to the costs of originating the mortgage loan. Since Professional Mortgage Processing is highly experienced with closings & mortgages, we are closing cost experts.

Obtaining 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 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 securing your loan.

We handle questions about these costs every day at Professional Mortgage Processing, so please be sure to contact us if we can help answer your questions.

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

Standard Closing Costs

• Up-front Interest Payment
• Escrow Fees
• Costs related to "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Costs
• Credit Report

• Transfer Taxes and Recording Fees
• Insurance

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