Closing Costs for Residential Real Estate Transactions
"Closing Costs" are the fees which cover the various services involved in the sale of residential real estate. Buyers and sellers negotiate to decide how to share these closing costs.
As you'll see below, many of the costs result from getting your loan. At Homewood Mortgage, Inc., we are highly experienced in mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Good Faith Estimate".
Good Faith Estimate (Also know as the GFE)
Soon after you submit your application, we'll provide you with a "Good Faith Estimate" of your closing costs. The closing costs specified in the GFE are estimated based on our experience with mortgage loans, but costs often vary by small amounts between delivery of the Good Faith Estimate (GFE) and closing. We explain GFEs with buyers every day, so we'd be glad to answer the you have about closing costs.
We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, very soon after you complete your application. At Homewood Mortgage, Inc., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Appraisal Costs
- Getting Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — A fee paid to lower your interest rate (optional)
- Transfer Taxes and Recording Fees
- Title Insurance
- Flood or Earthquake Insurance
- Private Mortgage Insurance (PMI)
Homewood Mortgage, Inc. can answer questions about these closing costs. Call us: 205-941-1484.