How do Closing Costs Work?

Every home sale involves certain costs. Sellers and buyers usually split these closing costs, as specified in the sales contract.

As indicated below, many of the costs result from getting your loan. At Abundance Home Mortgage, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive report on mortgage-related closing costs in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you apply for a loan, we'll provide you with a "Loan Estimate" of your closing costs. The closing costs specified in the LE are estimated based on our experience with mortgage loans, but costs often change a little bit between delivery of the LE and closing. We handle buyers' questions about closing costs every day at Abundance Home Mortgage, so don't hesitate to contact us if you have questions.

Below you'll find a fairly general list of closing costs. We will provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Fee
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
  • Points — lower your interest rate (optional)
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Abundance Home Mortgage can answer questions about these closing costs. Call us: (512) 335-7800.

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