How do Closing Costs Work?

Certain standard costs are associated with closing the sale of a house. Sellers and buyers customarily share these closing costs, as the sales contract specifies.

As indicated below, many of the closing costs result from getting your mortgage. Since Diamond Mortgage, LLC has extensive experience with closings & mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Very shortly after you apply for a loan, we'll give you a "Loan Estimate" of your closing costs. The closing costs specified in the Loan Estimate are estimated based on our experience with mortgage loans, but costs often change by small amounts between delivery of the LE and closing. We handle buyers' questions about closing costs every day at Diamond Mortgage, LLC, so please be sure to contact us if we can help answer your questions.

We've provided a general list of closing costs below, but we'll give you a specific list of closing costs, with amounts, very soon after you have completed your application. At Diamond Mortgage, LLC, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

• Taxes
• Costs associated with "originating" your loan
• Points — A fee paid to lower your mortgage interest rate (optional)
• Appraisal Fee
• Obtaining Your Credit Report
• Interest Payment
• Escrow Account

Property Taxes

• Insurance
• Transfer Taxes and Recording Fees

Homeowners Insurance

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

Diamond Mortgage, LLC can answer questions about these closing costs. Give us a call at 3178427744.