How do Closing Costs Work?

"Closing Costs" are the fees that cover the various services involved in the sale of a home. Sellers and buyers usually negotiate to determine who will pay different portions of these closing costs.

As indicated below, many of the buyer's costs cover the costs of originating the loan. Since Affirm Home Loans has extensive experience with closings and mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the Loan Estimate are estimated based on Affirm Home Loans's experience with mortgage loans, but costs often change a little bit between the Loan Estimate (LE) and closing. We handle buyers' questions about closing costs every day at Affirm Home Loans, so don't hesitate to contact us if you have questions.

Below is a fairly general list of closing costs. We will always provide you with a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance if applicable

Affirm Home Loans can answer questions about these closing costs. Give us a call at (972) 292-0448.

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