What are Closing Costs?
"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Buyers & sellers often negotiate the payment of these costs.
As you'll see below, many of the buyer's closing costs are related to the costs of originating the loan. At Chris Caggiano - Grand Oaks Funding, LLC, we have extensive experience in mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Loan Estimate".
The Loan Estimate (LE)
Very shortly after you apply for a loan, we'll give you a "Loan Estimate" of your costs. The closing costs enumerated in the Loan Estimate are estimated based on our experience with mortgage loans, but costs often change by small amounts between delivery of the LE and closing. We explain Loan Estimates with buyers every day, so we are happy to answer any questions you have about closing costs.
We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, very soon after you have completed your application. At Chris Caggiano - Grand Oaks Funding, LLC, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
- Pulling YourCredit Report
- Up-front Interest Payment
- Escrow Fees
- Various Taxes
- Costs related to "originating" your loan
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Fee
- Transfer Taxes and Recording Fees
- Flood / Earthquake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
At Chris Caggiano - Grand Oaks Funding, LLC, we answer questions about closing costs every day. Give us a call: (718) 477-4405.