How do Closing Costs Work?

There are certain standard costs associated with closing the sale of a home. Sellers and buyers customarily share these closing costs, as the sales contract specifies.

Many of the costs associated with buying a home are associated with getting a mortgage. At American Commerce Mortgage, we are highly experienced in residential mortgage lending, so we can compile a comprehensive list of 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. We base this cost estimate on our extensive past experience. Please note that while our LEs are very accurate, we cannot always estimate closing costs to the penny. We field questions about these costs every day at American Commerce Mortgage, so please be sure to ask if you have questions.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, soon after you have completed your application. At American Commerce Mortgage, 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
  • Escrow Account
  • Taxes
  • Costs related to "originating" your loan
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At American Commerce Mortgage, we answer questions about closing costs every day. Give us a call at 714-970-9700.

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