How do Closing Costs Work?

There are certain standard costs related to closing the sale of a home. Buyers usually incur these costs, as the sales contract specifies, however, depending on the contract the seller may be required to pay a portion of the closing costs. "Closing Costs" are the fees which pay for various services involved in the sale of a home. These fees might be paid directly or indirectly by crediting the loan.

As the list below indicates, many of the costs result from getting your mortgage. At Arizona Wholesale Mortgage Inc., we have extensive experience in mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your estimate.

Obtaining The Loan Estimate

Shortly after you submit your application, we'll give you a Loan Estimate. The Loan Estimate gives you information like closing costs, taxes, insurance, estimated interest rate monthly payment and more. Getting an estimate doesn't mean you've been approved, but it's the first step toward getting your loan.

We answer buyers' questions about these costs every day at Arizona Wholesale Mortgage Inc., so please feel free to contact us if we can help answer your 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 loan application. At Arizona Wholesale Mortgage Inc., 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 — A fee paid to lower your mortgage interest rate (optional)
• Appraisal Fee
• Credit Report
• Up-front Interest Payment
• Escrow Account

• Insurance
• Recording Fees and Transfer Taxes

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