How do Closing Costs Work?
All residential real estate sales involves costs. Sellers and buyers usually share these costs, as specified in the sales contract.
Many of the closing costs associated with buying a house are associated with getting a mortgage. At Professional Choice Mortgage, we have extensive experience in mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".
Good Faith Estimates (GFEs)
Soon after you apply for a loan, we will provide you with a "Good Faith Estimate" of your costs. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs usually vary by small amounts between delivery of the Good Faith Estimate (GFE) and closing. We answer buyers' questions about these costs every day at Professional Choice Mortgage, so please feel free to contact us if we can help answer your questions.
Below is a generic 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
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — A fee paid to lower your interest rate (optional)
- Appraisal Costs
- Getting YourCredit Report
- Transfer Taxes & Recording Fees
- Title Insurance
- Flood or Quake Insurance if applicable
- Private Mortgage Insurance (PMI)
Professional Choice Mortgage can answer questions about these closing costs. Call us at 814-861-3310.