What are Closing Costs?

There are certain standard costs associated with closing the sale of a home. Buyers and sellers almost always share these closing costs, as the sales contract specifies.

As you'll see below, many of the buyer's costs cover the costs of originating the loan. At Alerus Mortgage, we have extensive experience in mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the GFE are estimated based on Alerus Mortgage's experience with mortgage loans, but costs often change by small amounts between delivery of the GFE and closing. We answer questions about these costs every day at Alerus Mortgage, so please be sure to contact us if you have questions.

Below you'll find a general list of costs for buying residential real estate. We will provide you with a specific list of your closing costs when we give you a Good Faith Estimate.

Standard Closing Costs

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

Alerus Mortgage can help you understand closing costs. Give us a call at 952 417 8481.

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