How do Closing Costs Work?
All residential real estate sales incurs costs. Buyers and sellers customarily split these closing costs, as specified in the sales contract.
As indicated below, many of the costs result from getting your mortgage. Since Savers Home Loans has extensive experience with mortgages & closings, we can help you understand your closing costs.
Good Faith Estimates (GFEs)
Very shortly after you apply for a loan, we'll give you the "Good Faith Estimate" of your costs. The closing costs spelled out in the Good Faith Estimate are estimated based on our experience with mortgage loans, but costs often change a little bit between delivery of the Good Faith Estimate (GFE) and closing. We field buyers' questions about these costs every day at Savers Home Loans, so please feel free to ask if we can help answer your questions.
Below is a generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we provide your Good Faith Estimate.
Standard Closing Costs
- Various Taxes
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Fee
- Credit Report
- Up-front Interest Payment
- Escrow Fees
- Recording Fees & Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance if applicable
At Savers Home Loans, we answer questions about closing costs every day. Give us a call: (800) 974-0509.