How do Closing Costs Work?

All residential real estate transactions involves certain fixed costs. Buyers almost always pay these closing costs, as specified in the real estate sales contract, however, depending on the contract the seller will have to cover a portion 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 directly or indirectly by crediting the loan.

As indicated below, many of the closing costs result from getting your loan. Since Graves Owens Lending is highly experienced with mortgages and closings, we often explain the details of closing costs.

The Loan Estimate

Within three days after you submit your application, we will provide you with a Loan Estimate. The Loan Estimate lays out information like estimated interest rates, payments and fees, closing costs and more. This estimate is not an approval, but it's the first step toward obtaining your loan.

We handle questions about closing costs every day at Graves Owens Lending, so don't hesitate to ask if we can help answer your questions.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you complete your application. At Graves Owens Lending, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

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

• Transfer Taxes & Recording Fees
• Insurance

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