How do Closing Costs Work?

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

As indicated below, many of the buyer's costs are related to the costs of originating the mortgage loan. Since Affinity Mortgage Brokers is highly experienced with closings & mortgages, we are closing cost experts.

Loan Estimate (LE)

Very soon after you apply for a loan, we'll give you a "Loan Estimate" of your costs. We base this closing cost estimate on our many years of past experience. Please note that while our LEs are very precise, we can't always estimate costs to the penny. We go over Loan Estimates with buyers every day, so we'd be glad to answer any questions you have about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Getting Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Costs associated with "originating" your loan
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance
  • Private Mortgage Insurance (PMI)

Affinity Mortgage Brokers can help you understand closing costs. Call us: 719-425-2226.


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