How do Closing Costs Work?

Certain standard costs are associated with closing the sale of a house. Sellers and buyers customarily share these costs, as specified in the real estate sales contract.

Many of the closing costs associated with buying a home are associated with getting a loan. Since American Commerce Mortgage has extensive experience with closings and mortgages, we are closing cost experts.

Loan Estimate (LE)

Very soon after you submit your application, we will provide you with the "Loan Estimate" of your closing costs. We base this cost estimate on our extensive past experience. It's important to note that while our LEs are very precise, we cannot always estimate your costs to the penny. We go over LEs with buyers almost every day, so we will be happy to answer the you have about closing costs.

We've provided a general list of these costs below, but we will give you a specific list of closing costs, with amounts, very 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
  • Loan-related costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Obtaining Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

At American Commerce Mortgage, we answer questions about closing costs every day. Call us: 714-970-9700.

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