How do Closing Costs Work?
"Closing Costs" are the fees that pay for the various services involved in the sale of a home. Sellers and buyers almost always negotiate to determine who will pay different portions of these closing costs.
Many of the closing costs associated with buying a home are associated with getting the mortgage loan. At Great Florida Lending, Inc, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Loan Estimate".
Loan Estimate (Also known as the LE)
Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This closing cost estimate comes out of the loan officer's past experience. It's important to note that while our LEs are very precise, we cannot always estimate your costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that can change slightly at closing.
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 Loan Estimate.
Standard Closing Costs
- Getting YourCredit Report
- Up-front Interest Payment
- Escrow Fees
- Loan-related costs
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Fee
- Transfer Taxes and Recording Fees
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
Great Florida Lending, Inc can help you understand closing costs. Give us a call: (786) 262-6486.