How do Closing Costs Work?

"Closing Costs" are the fees which pay for various services involved in the sale of a house. Sellers and buyers negotiate to determine who will pay different portions of these costs.

Many of the costs associated with buying residential real estate are associated with getting a mortgage loan. Since Affinity Mortgage Brokers is highly experienced with closings and mortgages, we often explain the details of closing costs.

The Loan Estimate (LE)

Soon after you apply for a loan, we will give you the "Loan Estimate" of your costs. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs often change by small amounts between the LE and closing. We go over Loan Estimates with buyers almost every day, so we'd be glad to answer your questions about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Taxes
  • Loan Origination Fee
  • Points — lower your mortgage 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

Affinity Mortgage Brokers can answer questions about these closing costs. Give us a call at 719-331-6278.

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