How do Closing Costs Work?

Every home sale involves costs. Buyers almost always pay these closing costs, as specified in the sales contract, however, depending on the contract the seller will have to cover some of the closing costs. "Closing Costs" are the fees that pay for various services involved in the sale of a home. These fees can be paid out of pocket or indirectly by increasing the loan amount or charging a higher interest rate.

As indicated below, many of the costs result from getting your loan. Since Mountain Equity Mortgage, Inc. is highly experienced with closings and mortgages, we are closing cost experts.

Getting The Loan Estimate

Buyers will get a Loan Estimate within three days from when the loan application is submitted to the lender. The Loan Estimate details information like estimated interest rates, payments and fees, closing costs and more. This estimate is not an approval, rather it's the first step toward securing your loan.

We field questions about closing costs every day at Mountain Equity Mortgage, Inc., so please be sure to contact us if you have questions.

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 loan application. At Mountain Equity Mortgage, Inc., we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

• Costs associated with "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Fee
• Credit Report
• Interest Payment
• Escrow Fees

• Transfer Taxes & Recording Fees
• Insurance

• Flood or Earthquake Insurance
• Private Mortgage Insurance (PMI)
• Title Insurance