How do Closing Costs Work?
"Closing Costs" are the fees that cover various services involved when you sell or buy a home. Sellers and buyers usually negotiate the payment of these costs.
Many of the costs associated with buying a home are associated with getting the loan. At Professional Choice Mortgage, we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Good Faith Estimate".
Good Faith Estimate (GFE)
Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. This closing cost estimate comes out of the loan officer's past experience. It's important to note that while our GFEs are very precise, we can't always predict your costs to the penny. We will be glad to review the "Good Faith Estimate," answering your questions and highlighting costs that can vary a little bit at closing.
Below is a generic list of closing costs. We will always provide a specific list of your closing costs when we provide your Good Faith Estimate.
Standard Closing Costs
- Loan-related costs
- Points — lower your mortgage interest rate (optional)
- Appraisal Fee
- Getting Your Credit Report
- Interest Payment
- Escrow Account
- Recording Fees & Transfer Taxes
- Title Insurance
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
Professional Choice Mortgage can answer questions about these closing costs. Call us at 814-861-3310.