Closing Costs

About Closing Costs

Luminate Home Loans is Here to Serve Veterans

Apply Now

Closing Costs

"Closing Costs" are the fees that cover various services involved when you sell or buy a house. Sellers & buyers usually negotiate to decide how to split these closing costs.


As indicated below, many of the closing costs result from getting your mortgage loan. At VALoansMN.com, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Good Faith Estimate".


Loan Estimates (LEs)

Soon after you apply for a loan, we will provide you with a "Loan Estimate" of your closing costs. We base this cost estimate on our extensive past experience. It's important to note that while our LEs are very precise, we cannot always estimate closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that sometimes change slightly at closing.


Below you'll find a general list of closing costs. We will provide you with a specific list of your closing costs when we provide your Loan Estimate.

Standard Closing Costs

Loan Origination Fee

This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount.

Points (Optional)

An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $150,000 loan, 1 point would equal $1,500.

Appraisal Fee

The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted.

Credit Report

The lender uses a credit report to determine the creditworthiness of the loan applicant. This fee is often paid when the loan application is submitted.

Interest Payment

Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.

Escrow Account

At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account.

Property Taxes

This is the one closing cost that is often prorated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, the seller typically reimburses the buyer for the period in which the seller occupied the property.

Transfer Taxes and Recording fees

This is the cost for transferring ownership of the property and recording the purchase documents. The fee is often calculated as a percentage of the sales price.

Homeowners insurance

  • Title Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)
Share by: