How do Closing Costs Work?

All residential real estate sales involves certain fixed costs. Sellers and buyers customarily share these closing costs, as specified in the real estate sales contract.

Many of the closing costs associated with buying a home are associated with getting the mortgage loan. Since Affinity Mortgage Brokers is highly experienced with closings & mortgages, we are closing cost experts.

The Loan Estimate (LE)

Very soon after you submit your application, we will give you the "Loan Estimate" of your costs. The cost estimate is based on the loan officer's past experience. Please note that while our LEs are very precise, we can't always predict your closing costs to the penny. We handle questions about closing costs every day at Affinity Mortgage Brokers, so please feel free to ask if you have questions.

Below is a fairly generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Various Taxes
  • Loan Origination Fee
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Getting Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance
  • Private Mortgage Insurance (PMI)

Affinity Mortgage Brokers can answer questions about these closing costs. Give us a call: 719-425-2226.


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