How do Closing Costs Work?
Certain standard costs are associated with closing the sale of a home. Buyers and sellers usually share these costs, as the sales contract specifies.
As indicated below, many of the closing costs result from getting your mortgage loan. At Dayspring Bank, we have extensive experience in mortgage lending, so we can provide you with a comprehensive report on mortgage-related closing costs in your "Loan Estimate".
Loan Estimates (LEs)
Soon after you apply for a loan, we will give you a "Loan Estimate" of your closing costs. The closing costs enumerated in the LE are estimated based on Dayspring Bank's experience with mortgage loans, but costs often change by small amounts between delivery of the Loan Estimate (LE) and closing. We go over Loan Estimates with buyers almost every day, so we will be happy to answer your questions about closing costs.
We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you complete your loan application. At Dayspring Bank, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
Loan-Related Costs
- Escrow Fees
- Taxes
- Loan Origination Fee
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Fee
- Obtaining Your Credit Report
- Interest Payment
Property Taxes
- Insurance
- Transfer Taxes & Recording Fees
Homeowners Insurance
- Title Insurance
- Flood or Quake Insurance if applicable
- Private Mortgage Insurance (PMI)
Dayspring Bank can help you understand closing costs. Call us: 4025970500.