How do Closing Costs Work?
Certain standard costs are associated with closing the sale of a home. Buyers and sellers usually split these closing costs, as the real estate sales contract specifies.
As the list below indicates, many of the costs result from getting your mortgage. At America's Money Source, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".
Good Faith Estimates (GFEs)
Very shortly after you submit your application, we will provide you with the "Good Faith Estimate" of your closing costs. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs usually change a little bit between the GFE and closing. We will be glad to review the "Good Faith Estimate," answering your questions and pointing out costs that can change slightly at the closing table.
Below you'll find a fairly generic list of closing costs. We will always provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Fee
- Credit Report
- Up-front Interest Payment
- Escrow Fees
- Recording Fees & Transfer Taxes
- Title Insurance
- Flood or Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
America's Money Source can help you understand closing costs. Give us a call at (407) 898-7559.
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