Understand your closing costs.
Know what you’re paying, what you can compare, and how much cash you’ll need to close.
Your costs depend on your loan, property, location, and closing date. Your mortgage broker will help you understand the details for your situation.
Where does the money go?
Not every charge applies to every loan. Your disclosures show the items specific to your financing.
Loan charges
Origination and other lender charges, plus optional discount points. Compare the total rather than individual fee names.
Third-party services
Appraisal, credit report, title, and settlement services. Your Loan Estimate identifies services you may shop for.
Government charges
Recording fees and applicable transfer or mortgage taxes. Costs and who pays vary by location and agreement.
Prepaids & escrow deposits
Prepaid interest, insurance premiums, and initial deposits for future tax and insurance bills. These are different from lender fees.
What do I actually bring to closing?
Your disclosure’s cash-to-close calculation brings the pieces together. Earnest money already paid generally reduces the amount remaining.
Some expenses, such as inspections or appraisal charges, may be paid earlier. Avoid counting the same expense twice.
For a refinance, the calculation can include an existing loan payoff, financed costs, or cash back. Review the transaction-specific figures with your broker.
A purchase example
Educational example only—not a quote or typical-cost estimate. Assumes all listed costs are due at closing, the credit is permitted and fully usable, and no other adjustments apply.
Compare the full picture.
Look beyond the rate
Compare loan terms, upfront loan charges, points, lender credits, and monthly payment using comparable loan scenarios.
Understand credits
Seller credits depend on your agreement and program limits. Lender credits can reduce upfront costs but may involve a higher rate.
Ask what you can shop for
Use the services list on your Loan Estimate and confirm acceptable providers with your lender.
Review both disclosures
For most closed-end home mortgages, compare your Closing Disclosure with your latest Loan Estimate. Ask your broker to explain changes.
A few common questions.
When will I receive my cost disclosures?
For most closed-end home mortgages, a Loan Estimate is provided within three business days of receiving your application and a Closing Disclosure at least three business days before closing. HELOCs, reverse mortgages, and certain other loans use different disclosures.
Can closing costs be financed?
Some costs may be financed when the loan program and transaction allow it, particularly with refinancing. Financing costs increases your loan balance and can increase total interest. Purchase financing has different limitations; ask your broker what applies.
Are points required?
Discount points are optional upfront charges for a lower interest rate. One point equals 1% of the loan amount. Compare the upfront cost and potential monthly savings before choosing.
How do mortgage insurance and VA fees fit in?
Conventional PMI, FHA mortgage insurance, and the VA funding fee follow different rules. Some charges may be upfront or financed, and some borrowers qualify for exemptions. Your broker will explain the costs for your program.
What should I do before sending funds?
Review your final cash-to-close figure and accepted payment method. Verify payment instructions with your Loan Officer before sending funds, especially if instructions change unexpectedly.
Let’s put your numbers in context.
Buying or refinancing? We’ll help you understand your payment, upfront costs, and next steps.
General educational information. Your mortgage broker will provide details based on your individual profile. Budget separately for moving, repairs, utility deposits, and a cash cushion.