How do Closing Costs Work?

Leatherstocking Group, Inc. can answer questions about these closing costs. Give us a call at 607-547-5007.

Certain standard costs are associated with closing the sale of a house. Buyers usually incur these costs, as specified in the real estate sales contract, however, depending on the contract the seller may be required to pay some of the closing costs. "Closing Costs" are the fees which pay for various services involved when you sell or buy residential real estate. These fees are either paid out of pocket or indirectly by increasing the loan amount or charging a higher interest rate.

Many of the closing costs associated with buying a home are associated with getting a mortgage. Since Leatherstocking Group, Inc. is highly experienced with closings and mortgages, we often explain the details of closing costs.

Obtaining The Loan Estimate

Buyers will receive a Loan Estimate by three days from when the loan application is submitted to the lender. The Loan Estimate gives you information like closing costs, taxes, insurance, estimated interest rate monthly payment and more. This estimate is not an approval, but it's the first step toward getting your loan.

We will be glad to review the estimate, answering your questions and highlighting costs that sometimes vary a little bit at the closing table.

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 application. At Leatherstocking Group, Inc., 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
  • Obtaining YourCredit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Fee
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)
Are you looking for a mortgage loan? We will be glad to assist you! Give us a call today at 607-547-5007. Want to get started? Apply Here.