How do Closing Costs Work?
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There are certain standard costs associated with closing the sale of a home. Sellers and buyers usually share these costs, as specified in the sales contract.
As you'll see below, many of the closing costs result from getting your mortgage. Since SMI Lending, Inc. is highly experienced with mortgages and closings, we are closing cost experts.
The Good Faith Estimate (GFE)
Very soon after you submit your application, we will give you a "Good Faith Estimate" of your closing costs. The closing costs spelled out in the GFE are estimated based on SMI Lending, Inc.'s experience with mortgage loans, but costs often change a little bit between the Good Faith Estimate (GFE) and closing. We handle buyers' questions about closing costs every day at SMI Lending, Inc., so please feel free to ask if we can help answer your questions.
Below is a fairly general list of costs for buying residential real estate. We will provide you with a specific list of your closing costs when we provide your Good Faith Estimate.
Standard Closing Costs
- Obtaining YourCredit Report
- Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — A fee paid to lower your interest rate (optional)
- Appraisal Fee
- Recording Fees & Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood / Quake Insurance
At SMI Lending, Inc., we answer questions about closing costs every day. Give us a call at (972) 818-0022.