How do Closing Costs Work?

All residential real estate sales incurs fixed costs. Buyers and sellers almost always split these closing costs, as the sales contract specifies.

As indicated below, many of the buyer's closing costs are related to the costs of getting the loan. At Alerus Mortgage, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Soon after you apply for a loan, we'll provide you with the "Loan Estimate" of your closing costs. The closing costs specified in the LE are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We handle buyers' questions about closing costs every day at Alerus Mortgage, so please feel free to ask if we can help answer your questions.

Below is a general list of closing costs. We will provide you with a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Taxes
  • Loan-related costs
  • Points — lower your mortgage interest rate (optional)
Property Taxes
  • Recording Fees & Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood or Quake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At Alerus Mortgage, we answer questions about closing costs every day. Give us a call at 952 417 8481.

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