What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved in the sale of a home. Sellers & buyers almost always negotiate the payment of these closing costs.
Many of the closing costs associated with buying a home are associated with getting a loan. Since AA Mortgage LLC is highly experienced with closings & mortgages, we often explain the details of closing costs.
Loan Estimates (LEs)
Buyers will receive a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on AA Mortgage LLC's experience with mortgage loans, but costs often change a little bit between the LE and closing. We answer questions about these costs every day at AA Mortgage LLC, so don't hesitate to contact us if you have questions.
We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, very soon after you complete your loan application. At AA Mortgage LLC, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing CostsLoan-Related Costs
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Costs
- Getting Your Credit Report
- Interest Payment
- Escrow Fees
- Various Taxes
- Loan-related costs
- Recording Fees & Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance if applicable