How do Closing Costs Work?

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

As you'll see below, many of the costs result from getting your loan. At Saab Mortgage, we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of mortgage-related costs in your "Loan Estimate".

The Loan Estimate (LE)

Soon after you apply for a loan, we'll give you the "Loan Estimate" of your costs. The closing costs specified in the LE are estimated based on Saab Mortgage's experience with mortgage loans, but costs often vary by small amounts between the LE and closing. We field questions about these costs every day at Saab Mortgage, so please feel free to ask if we can help answer your questions.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, soon after you complete your loan application. At Saab Mortgage, 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
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Obtaining Your Credit Report
  • Interest Payment
  • Escrow Fees
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance if applicable

Saab Mortgage can help you understand closing costs. Call us at 703-288-0777.

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