What are Closing Costs?
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"Closing Costs" are the fees that pay for various services involved in the sale of a house. Sellers and buyers usually negotiate these costs.
As you'll see below, many of the costs result from getting your mortgage. Since Primebank has extensive experience with mortgages & closings, we often explain the details of closing costs.
Loan Estimates (LEs)
Buyers get a good faith estimate of closing costs, in the form of a "Loan Estimate", around the time the loan application is submitted to the lender. This closing cost estimate comes out of the loan officer's past experience. It's important to note that while our LEs are very precise, we cannot always estimate costs to the penny. We will be glad to review the Loan Estimate with you, answering questions and pointing out costs that can change slightly at the closing table.
We've provided a general list of these costs below, but we'll give you a specific list of closing costs, with amounts, very soon after you have completed your application. At Primebank, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Costs associated with "originating" your loan
- Points - A fee paid to lower your mortgage interest rate (optional)
- Property appraisal
- Credit report
- Flood determination
- Title services
- Settlement services, if applicable
- Recording fees & other taxes
- Homeowner's insurance
- Flood Insurance, if applicable
- Mortgage insurance, if applicable
- Prepaid interest
- Property taxes
- Escrow account deposits, if applicable
At Primebank, we answer questions about closing costs every day. Call us in Le Mars at 712-546-4175, in Sioux Center at 712-722-4545, or in Sioux City, call our office on Sunnybrook Drive at 712-224-5400 or our office on Hamilton Boulevard at 712-224-4777.