What are Closing Costs?
"Closing Costs" are the fees which pay for the various services involved when you sell or buy residential real estate. Buyers & sellers usually negotiate the payment of these closing costs.
As you'll see below, many of the buyer's costs cover the costs of originating the loan. At Professional Choice Mortgage, 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 Estimate (Also know as the GFE)
Buyers will get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the Good Faith Estimate are estimated based on our experience with mortgage loans, but costs usually change by small amounts between the Good Faith Estimate (GFE) and closing. We answer buyers' questions about closing costs every day at Professional Choice Mortgage, so please be sure to contact us if you have questions.
Below is a fairly generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Costs associated with "originating" your loan
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Credit Report
- Interest Payment
- Escrow Fees
- Transfer Taxes and Recording Fees
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
Professional Choice Mortgage can answer questions about these closing costs. Give us a call at 814-861-3310.