How do Closing Costs Work?
"Closing Costs" are the fees which cover various services involved in the sale of a house. Sellers and buyers usually negotiate to decide how to split these closing costs.
As indicated below, many of the buyer's closing costs are related to the costs of getting the loan. At America's Money Source, 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 get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. This closing cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very accurate, we can't always predict your closing costs to the penny. We go over GFEs with buyers almost every day, so we will be happy to answer the you have about closing costs.
Below you'll find a fairly general list of closing costs. We will provide a specific list of your closing costs when we give you a Good Faith Estimate.
Standard Closing Costs
- Points — lower your interest rate (optional)
- Appraisal Costs
- Getting Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Loan Origination Fee
- Recording Fees & Transfer Taxes
- Flood / Earthquake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
America's Money Source can help you understand closing costs. Call us at (407) 898-7559.
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