How do Closing Costs Work?
Every home sale incurs certain costs. Sellers and buyers usually share these closing costs, as the real estate sales contract specifies.
As indicated below, many of the costs result from getting your loan. Since Chris Caggiano - Grand Oaks Funding, LLC is highly experienced with mortgages & closings, we often explain the details of closing costs.
The Loan Estimate (Also known as the LE)
Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs specified in the LE are estimated based on Chris Caggiano - Grand Oaks Funding, LLC's experience with mortgage loans, but costs often change a little bit between delivery of the LE and closing. We handle buyers' questions about closing costs every day at Chris Caggiano - Grand Oaks Funding, LLC, so please feel free to ask 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 application. At Chris Caggiano - Grand Oaks Funding, LLC, 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
- Various Taxes
- Costs associated with "originating" your loan
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Fee
- Credit Report
- Recording Fees and Transfer Taxes
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance
At Chris Caggiano - Grand Oaks Funding, LLC, we answer questions about closing costs every day. Call us: (718) 477-4405.