Closing Costs

Y&L Mortgage LLC is here to guide you through every phase of the process, including closing costs – those essential fees associated with finalizing your real estate transaction.

What are Closing Costs?

Closing costs encompass various standard charges incurred when finalizing the sale of a property. These fees are typically divided between buyer and seller as outlined in the real estate sales contract. Many closing costs stem from obtaining your mortgage, and as seasoned closing and mortgage specialists, Y&L Mortgage LLC is here to ensure you understand every expense involved.

Loan Estimates: A Transparent Look at Your Costs

As soon as you submit your loan application, we'll provide a Loan Estimate (LE) detailing your projected closing costs. This estimate leverages our extensive experience to provide an accurate picture of your closing expenses. While we strive for pinpoint precision, unforeseen circumstances may cause slight variations. Our team regularly walks buyers through LEs, so please don't hesitate to ask any questions you may have.

Beyond Estimates: Specific Costs Tailored to You

The following is a general list of common closing costs. Shortly after completing your application, Y&L Mortgage LLC will provide a detailed breakdown of your specific closing costs, including precise amounts. We believe in transparency, and you'll be promptly notified if any adjustments arise.

Breakdown of Standard Closing Costs

• Loan-Related Costs
  • Escrow Fees: These cover the secure handling of funds throughout the closing process.
  • Taxes: Prorated property taxes from the seller may be included.
  • Loan Origination Costs: Fees associated with processing and underwriting your mortgage.
• Optional Points: Pay these upfront charges to potentially reduce your mortgage interest rate.
• Appraisal Fee: An independent professional assesses the property's value to ensure the loan amount aligns with market value.
• Credit Report Fee: The cost of obtaining your credit report, used to determine your creditworthiness.
• Up-front Interest Payment: Covers interest accrued on your loan between closing and your first official mortgage payment.
• Property Taxes: A prorated amount of property taxes from the seller may be included.
• Insurance
  • Homeowners Insurance: Protects your property from damage or loss.
  • Flood or Earthquake Insurance (if applicable): Required in certain areas.
• Transfer Taxes & Recording Fees: Government fees associated with transferring ownership of the property.
• Title Insurance: Protects both buyer and lender from ownership or title defects.
• Private Mortgage Insurance (PMI): Required if your down payment is less than 20% of the purchase price.

Understanding closing costs empowers you to effectively budget for your new home. Our mortgage specialists at Y&L Mortgage LLC are committed to clear communication and will ensure you enter the closing process fully informed. Let's work together to make your homeownership dreams a reality!