How do Closing Costs Work?

"Closing Costs" are the fees which pay for various services involved when you sell or buy a home. Sellers and buyers negotiate to determine who will pay different portions of these costs.

As indicated below, many of the closing costs result from getting your mortgage. Since Savers Home Loans has extensive experience with closings and mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Very shortly after you submit your application, we'll give you a "Loan Estimate" of your closing costs. We base this closing cost estimate on our many years of past experience. It's important to note that while our LEs are very precise, we cannot always predict your closing costs to the penny. We field questions about these costs every day at Savers Home Loans, so don't hesitate to contact us if we can help answer your questions.

Below is a fairly generic list of costs for buying residential real estate. We will always provide you with a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

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

At Savers Home Loans, we answer questions about closing costs every day. Call us: (800) 974-0509.