Closing Costs for Residential Real Estate Transactions

There are certain standard costs associated with closing the sale of a house. Buyers customarily incur these costs, as the real estate sales contract specifies, however, depending on State law the seller may have to split some of the closing costs. "Closing Costs" are the fees which cover the various services involved when you sell or buy residential real estate. These fees can be paid directly or indirectly by increasing the loan amount or charging a higher interest rate.

As you'll see below, many of the buyer's closing costs cover the costs of originating the mortgage loan. Since WS Financial has extensive experience with closings and mortgages, we often explain the details of closing costs.

The Loan Estimate

Three days after you apply for a loan, we'll give you a Loan Estimate. The Loan Estimate lays out information like insurance and taxes, closing costs, monthly payments and more. This estimate is not an approval, rather it's the first step toward securing your loan.

We review estimates with buyers almost every day, so we will be happy to answer your questions about closing costs.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you complete your application. At WS Financial, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

• Credit Report
• Interest Payment
• Escrow Account
• Loan Origination Fee
• Points — A fee paid to lower your interest rate (optional)
• Appraisal Fee

• Transfer Taxes & Recording Fees
• Insurance

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