What are Closing Costs?

"Closing Costs" are the fees that cover the various services involved in the sale of residential real estate. Buyers & sellers usually negotiate to determine who will pay different portions of these costs.

Many of the costs associated with buying a home are associated with getting a loan. At Southwest Funding #841, we have extensive experience in mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Loan Estimate".

The Loan Estimate (Also known as the LE)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs specified in the LE are estimated based on our experience with mortgage loans, but costs often change a little bit between the LE and closing. We will be glad to review the "Loan Estimate," answering questions and pointing out costs that can change slightly at the closing table.

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

Standard Closing Costs

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

Southwest Funding #841 can answer questions about these closing costs. Call us at (512) 291-6100.

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