How do Closing Costs Work?

"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers & buyers often negotiate to decide how to split these closing costs.
Many of the costs associated with buying a house are associated with getting the mortgage. Since Greystone Loans, Inc. has extensive experience with closings & mortgages, we are closing cost experts.
Loan Estimates (LEs)
Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This cost estimate comes out of the loan officer's past experience. It's important to note that while our LEs are very accurate, we can't always estimate costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that can vary a little bit at the closing table.
Below is a fairly generic list of closing costs. We will always provide you with a specific list of your closing costs when we give you a Loan Estimate.
Standard Closing Costs
Loan-Related CostsProperty Taxes
- Obtaining YourCredit Report
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Costs associated with "originating" your loan
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Fee
Homeowners Insurance
- Recording Fees and Transfer Taxes
- Insurance
- Flood or Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance