How do Closing Costs Work?

All residential real estate transactions involves certain costs. Sellers and buyers customarily split these closing costs, as specified in the real estate sales contract.

Many of the costs associated with buying a house are associated with getting the mortgage loan. At BancZone, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your "Loan Estimate".

The Loan Estimate (Also known as the LE)

Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs spelled out in the Loan Estimate are estimated based on our experience with mortgage loans, but costs usually vary by small amounts between the LE and closing. We field questions about these costs every day at BancZone, so please feel free to contact us if we can help answer your questions.

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

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Taxes
  • Loan-related costs
  • Points — lower your interest rate (optional)
  • Appraisal Fee
  • Getting Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At BancZone, we answer questions about closing costs every day. Call us at 407-583-6250.

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