Closing Costs for Residential Real Estate Transactions

Every home sale involves fixed costs. Buyers customarily pay these costs, as specified in the sales contract, however, depending on the contract the seller may have to split some of the closing costs. "Closing Costs" are the fees which pay for various services involved when you sell or buy a house. These fees might be paid out of pocket or indirectly by increasing the loan amount or charging a higher interest rate.

As indicated below, many of the buyer's closing costs cover the costs of originating the mortgage loan. Since North Star Mortgage Realty has extensive experience with closings and mortgages, we are closing cost experts.

The Loan Estimate

Buyers will receive a Loan Estimate by three days from when the loan application is submitted to the lender. The Loan Estimate lays out information like insurance and taxes, closing costs, monthly payments and more. Getting an estimate doesn't mean you've been approved, but it's the first step toward securing your loan.

We answer buyers' questions about these costs every day at North Star Mortgage Realty, so please be sure to ask if you have questions.

We've provided a general list of closing costs below, but we'll give you a specific list of closing costs, with amounts, soon after you complete your application. At North Star Mortgage Realty, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

• Loan Origination Fee
• Points — These are costs you pay up-front to lower your interest rate (optional)
• Appraisal Costs
• Credit Report
• Interest Payment
• Escrow Fees

• Transfer Taxes & Recording Fees
• Insurance

• Title Insurance
• Flood or Quake Insurance
• Private Mortgage Insurance (PMI)