How do Closing Costs Work?
Every home sale incurs fixed costs. Buyers and sellers usually share these costs, as specified in the real estate sales contract.
Many of the closing costs associated with buying a house are associated with getting the mortgage. At Homewood Mortgage, Inc., we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your "Good Faith Estimate".
Good Faith Estimate (GFE)
Very shortly after you submit your application, we'll provide you with a "Good Faith Estimate" of your costs. The closing costs enumerated in the Good Faith Estimate are estimated based on our experience with mortgage loans, but costs often change a little bit between the GFE and closing. We will be glad to review the "Good Faith Estimate," answering questions and highlighting costs that sometimes vary a little bit at closing.
We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you have completed your application. At Homewood Mortgage, Inc., we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
- Loan-related costs
- Points — lower your interest rate (optional)
- Appraisal Fee
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Recording Fees & Transfer Taxes
- Title Insurance
- Flood / Quake Insurance
- Private Mortgage Insurance (PMI)
Homewood Mortgage, Inc. can help you understand closing costs. Give us a call at 205-941-1484.