How do Closing Costs Work?

"Closing Costs" are the fees which pay for the various services involved in the sale of residential real estate. Buyers & sellers usually negotiate to decide how to split these costs.

As indicated below, many of the buyer's costs are related to the costs of originating the mortgage loan. At Foxfield Financial, we are highly experienced in mortgage lending, so we can compile a comprehensive report on mortgage-related closing costs in your "Loan Estimate".

The Loan Estimate (LE)

Soon after you submit your application, we will provide you with the "Loan Estimate" of your costs. The closing costs spelled out in the LE are estimated based on Foxfield Financial's experience with mortgage loans, but costs often vary a little bit between the LE and closing. We field buyers' questions about closing costs every day at Foxfield Financial, so don't hesitate to ask if you have questions.

We've provided a general list of these costs below, but we will give you a specific list of closing costs, with amounts, very soon after you complete your loan application. At Foxfield Financial, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Taxes
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Foxfield Financial can answer questions about these closing costs. Call us: 720-598-8300.

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