How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved when you sell or buy residential real estate. Buyers and sellers usually negotiate the payment of these costs.

Many of the closing costs associated with buying a house are associated with getting the loan. At Ward Kilduff Mortgage, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive list of closing costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs specified in the LE are estimated based on Ward Kilduff Mortgage's experience with mortgage loans, but costs often change a little bit between delivery of the LE and closing. We review Loan Estimates with buyers almost every day, so we will be happy to answer any questions you have about closing costs.

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 Ward Kilduff Mortgage, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

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

Ward Kilduff Mortgage can help you understand closing costs. Give us a call at (860) 658-7100.

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