Closing Costs for Residential Real Estate Transactions
"Closing Costs" are the fees that cover the various services involved when you sell or buy a house. Sellers and buyers often negotiate to decide how to split these costs.
As you'll see below, many of the buyer's costs are related to the costs of originating the mortgage loan. At Professional Choice Mortgage, we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of mortgage-related costs in your "Good Faith Estimate".
Good Faith Estimates (GFEs)
Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the Good Faith Estimate are estimated based on Professional Choice Mortgage's experience with mortgage loans, but costs often vary a little bit between delivery of the Good Faith Estimate (GFE) and closing. We handle questions about closing costs every day at Professional Choice Mortgage, so please feel free to ask if you have questions.
We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, soon after you have completed your loan application. At Professional Choice Mortgage, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Costs related to "originating" your loan
- Points — lower your interest rate (optional)
- Appraisal Costs
- Transfer Taxes & Recording Fees
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Earthquake Insurance if applicable
At Professional Choice Mortgage, we answer questions about closing costs every day. Give us a call at 814-861-3310.