Understanding Closing Costs

Understanding Closing Costs

When it comes to closing the sale of a house, there are certain standard costs that are split between the buyer and seller which are specified in the purchase contract. The allocation of these fees is, to an extent, negotiable. As I negotiate the purchase contract on your behalf, I will strive to achieve the result that you desire, as well as reviewing the closing costs for which you are responsible.


Buyers will receive a “Loan Estimate” with closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer’s past experience and may not include all the closing costs. I am happy to review the Loan Estimate with and provide analysis based on my experience.


Prior to the closing, you will receive a “Closing Disclosure” that will include all of the final closing costs for your loan. The Closing Disclosure should match the Loan Estimate very closely.


Loan-Related Costs:

  • Loan origination fee
  • Points (if applicable)
  • Appraisal fee
  • Credit report
  • Interest payment
  • Escrow fee
Tax-Related Costs:

  • Prorated property taxes
  • Transfer taxes
  • Recording fees
Insurance-Related Costs:

  • Homeowners insurance
  • Flood or earthquake insurance
  • Private mortgage insurance (“PMI”)
  • Title insurance
Real Estate Sales Commissions

  • Sellers’ Broker/Agent
  • Buyer’s Broker/Agent