How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of residential real estate. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs.

Many of the costs associated with buying a home are associated with getting a loan. At Alternative Mortgage Group, we are highly experienced in mortgage lending, so we can compile a comprehensive list of closing costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you submit your application, we will provide you with a "Loan Estimate" of your costs. The closing cost estimate comes out of our past experience. Please note that while our LEs are very accurate, we can't always predict your closing costs to the penny. We review LEs with buyers almost every day, so we will be happy to answer any questions you have about closing costs.

We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, very soon after you have completed your application. At Alternative Mortgage Group, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

• Appraisal Fee
• Pulling Your Credit Report
• Interest Payment
• Escrow Fees
• Various Taxes
• Loan Origination Fee
• Points — lower your interest rate (optional)

Property Taxes

• Recording Fees & Transfer Taxes
• Insurance

Homeowners Insurance

• Flood / Earthquake Insurance if applicable
• Private Mortgage Insurance (PMI)
• Title Insurance

At Alternative Mortgage Group, we answer questions about closing costs every day. Call us at 561-395-4264.