How do Closing Costs Work?

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"Closing Costs" are the fees which cover various services involved in the sale of residential real estate. Buyers & sellers often negotiate these costs.

Many of the closing costs associated with buying residential real estate are associated with getting the mortgage. Since Willow Bend Mortgage has extensive experience with closings & mortgages, we are closing cost experts.

Good Faith Estimates (GFEs)

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the Good Faith Estimate are estimated based on our experience with mortgage loans, but costs usually change by small amounts between the GFE and closing. We review GFEs with buyers almost every day, so we will be happy to answer any questions you have about closing costs.

Below you'll find a generic list of closing costs. We will provide you with a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Flood / Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance
At Willow Bend Mortgage, we answer questions about closing costs every day. Give us a call: (256) 734-6012.

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