How do Closing Costs Work?

Every home sale incurs costs. Sellers and buyers usually split these closing costs, as the sales contract specifies.

As you'll see below, many of the buyer's costs are related to the costs of originating the mortgage loan. At Diamond Mortgage, LLC, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".

Loan Estimate (Also known as the LE)

Very soon after you submit your application, we will provide you with a "Loan Estimate" of your closing costs. The cost estimate is based on our past experience. Please note that while our LEs are very accurate, we cannot always predict your closing costs to the penny. We go over LEs with buyers almost every day, so we'd be glad to answer your questions about closing costs.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, 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

• Various Taxes
• Loan Origination Fee
• Points — A fee paid to lower your interest rate (optional)
• Appraisal Costs
• Credit Report
• Up-front Interest Payment
• Escrow Account

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

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

At Diamond Mortgage, LLC, we answer questions about closing costs every day. Give us a call at 3178427744.