How do Closing Costs Work?

"Closing Costs" are the fees that cover the various services involved in the sale of a home. Sellers & buyers almost always negotiate to decide how to share these closing costs.

As you'll see below, many of the buyer's costs are related to the costs of originating the loan. Since Diamond Mortgage, LLC is highly experienced with closings and mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Soon after you submit your application, we'll provide you with the "Loan Estimate" of your costs. We base this cost estimate on our extensive past experience. It's important to note that while our LEs are very accurate, we can't always estimate closing costs to the penny. We will be glad to review the "Loan Estimate," answering questions and highlighting costs that sometimes vary a little bit at closing.

Below is a fairly general list of closing costs. We will provide you with a specific list of your closing costs when we provide your Loan Estimate.

Standard Closing Costs

Loan-Related Costs

• Escrow Account
• Taxes
• Loan-related costs
• Points — These are costs you pay up-front to lower your interest rate (optional)
• Appraisal Costs
• Obtaining Your Credit Report
• Interest Payment

Property Taxes

• Insurance
• Transfer Taxes and Recording Fees

Homeowners Insurance

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

Diamond Mortgage, LLC can help you understand closing costs. Give us a call at 3178427744.