Understanding Closing Costs
Closing costs are an important part of the home buying process, but they don’t have to be a mystery. Whether you’re a first-time homebuyer or an experienced homeowner, knowing what to expect and understanding each cost can help you plan and avoid surprises.
What Are Closing Costs?
Closing costs refer to the fees incurred during the finalization of a home sale and mortgage loan. These costs are typically paid on closing day, but many buyers aren’t sure exactly what they cover. Some are related to the property itself, while others are tied to the mortgage loan process. We ensure that you understand all costs upfront so you can be fully prepared.
Soon after you submit your completed application, we will provide you with the “Loan Estimate” of your costs. The closing costs outlined in the Loan Estimate are estimated based on our experience with mortgage loans; however, costs often vary by small amounts between the Loan Estimate and the actual closing. We will be glad to review the “Loan Estimate” with you, answering your questions and pointing out costs that may vary slightly at the closing table.
Key Closing Costs to Expect
Closing costs can vary, but here are the most common fees you’ll likely encounter when finalizing your mortgage:
Loan-Related Costs
- Upfront interest payment
- Escrow fees
- Taxes
- Appraisal costs
- Credit report fees
- Recording fees
- Points (optional) to lower your interest rate
Insurance Costs
- Homeowners insurance
- Title insurance
- Private mortgage insurance (PMI)
- Flood or earthquake insurance (if applicable)
Ready to Get Started?
Understanding your closing costs is a key step in the home buying process. At Croghan Colonial Bank, we’re here to make sure you’re fully informed and ready for closing. Ready to move forward? Start the mortgage process today.
Important Legal Disclosures
*All loans are subject to credit approval.