Closing Costs for Residential Real Estate Transactions
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"Closing Costs" are the fees that cover the various services involved in the sale or refinancing for residential real estate. Sellers and buyers almost always negotiate the payment of these closing costs.
As you'll see below, many of the buyer's closing costs cover the costs of originating the mortgage loan. At First Equity Home Loan, Inc., we have extensive experience in mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your "Good Faith Estimate".
Good Faith Estimates (GFEs)-now called Loan Estimate's
Buyers get a "Good Faith Estimate" (LE)of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the GFE (LE) are estimated based on First Equity Home Loan, Inc.'s experience with mortgage loans, but costs often change a little bit between the Loan Estimate and closing. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that sometimes vary a little bit at the closing table.
We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, soon after you have completed your application. At First Equity Home Loan, Inc., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Obtaining Your Credit Report
- Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Recording Fees & Transfer Taxes
- Title Insurance
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
At First Equity Home Loan, Inc., we answer questions about closing costs every day. We welcome your call.