How do Closing Costs Work?

"Closing Costs" are the fees which pay for the various services involved when you sell or buy a house. Buyers and sellers usually negotiate these costs.

Many of the closing costs associated with buying a house are associated with getting a mortgage. At Team USA Mortgage, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Loan Estimate".

The Loan Estimate (Also known as the LE)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on Team USA Mortgage's experience with mortgage loans, but costs usually vary by small amounts between delivery of the LE and closing. We field buyers' questions about these costs every day at Team USA Mortgage, so don't hesitate to ask if we can help answer your questions.

Below is a general list of costs for buying a home. We will always provide a specific list of your closing costs when we provide your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Pulling Your Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Taxes
  • Loan-related costs
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Team USA Mortgage can help you understand closing costs. Give us a call: 218-237-5128.

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