Loan Closing Costs

What will it cost to close your transaction?

We will provide you with a Loan Estimate of closing costs when you submit your loan application. Our estimates are very accurate, however, we cannot always predict your closing costs to the penny. We will review the estimate with you, answering questions and pointing out costs that may vary slightly from your actual costs at closing.  You can also refer to the  Home Loan Toolkit for additional explanation.

Your actual costs will be itemized on your closing settlement statement, also called a Closing Disclosure.  

You will receive your Closing Disclosure at least three days prior to closing.

Paying for your closing costs

You have several options when it comes to paying your closing costs and pre-paid items:

• bring cash to closing
• increase your loan amount by the amount of closing costs and pre-paid items
• negotiate with the seller to cover some of your costs as part of your purchase contract
• lender may cover some of your costs.  Ask us how.

Points and lender fees

Discount points vary based on loan product, loan amount and interest rate. We don't charge discount points unless you want to lower your interest rate.  Once your rate is locked in, it is guaranteed not to go up during the rate lock period.

• discount points
• lender fees (processing, underwriting, loan document preparation)

Third party fees

Title company fees are determined by the state of Texas and the title company you use. Typically, the seller pays for the owner's title policy. In many cases, the seller can provide an existing survey.

• credit report
• appraisal
• flood certification
• tax service fee
• survey
• title company closing/escrow fee
• title company fees (copies, courier)
• title insurance
• recording fee

Prepaid items

Prepaid interest varies depending on which day of the month you close. It covers the interest that accrues on your loan from the day it funds until the last day of the month. Once your closing date has been selected, we will be able to provide you with the exact amount of prepaid interest required for your loan.

You will also need to provide the initial annual premium for your homeowners insurance policy. 
If your property is in a flood zone, this will include flood insurance coverage as well.

• prepaid interest
• homeowners insurance

Escrow account funds

An escrow account may be required to cover the future payments for items like homeowners insurance and property taxes. They do not represent fees; instead, they establish the funds needed to properly service your loan. These costs will be the same regardless of the lender you choose. Depending on the date the taxes are due and the date of closing, the deposit needed for taxes may vary from 2 to 12 months.  If you are purchasing your home, the seller is responsible for a portion of these taxes.

• homeowners insurance reserves
• property tax reserves