How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of a house. Sellers and buyers negotiate to determine who will pay different portions of these closing costs.

As you'll see below, many of the buyer's costs are related to the costs of originating the loan. At Metro Mortgage, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Soon after you submit your application, we will give you the "Loan Estimate" of your costs. The closing costs spelled out in the LE are estimated based on Metro Mortgage's experience with mortgage loans, but costs often vary a little bit between delivery of the Loan Estimate (LE) and closing. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that can change slightly at closing.

Below is a general list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance

Metro Mortgage can help you understand closing costs. Give us a call: 866-300-1550.

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