What are Closing Costs?

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Certain standard costs are associated with closing the sale of a home as well as refinancing later. Buyers and sellers may share some of these costs, as the purchase contract specifies.

When refinancing, homeowners are responsible for all of the closing costs, but those costs may often be financed out of the owner's built-up equity in the property.

Many of the closing costs associated with buying or refinancing residential real estate are associated with getting a mortgage.  At First Residential Mortgage, we believe that our clients will make the best financing choices when they are fully informed about the costs of borrowing.

We will disclose the fees and costs you will be expected to pay as fully as we can, then we'll be counting on you to ask about any costs you don't understand. Please don't hesitate to ask!

The Good Faith Estimate (GFE)

Very soon after you submit your application, we'll give you the "Good Faith Estimate" of your closing costs. The closing costs specified in the Good Faith Estimate are estimated based on our many years' experience with mortgage loans. Some of your costs may change by small amounts between the Good Faith Estimate (GFE) and closing, but our First Residential fees will be as agreed when we take your initial application. You can count on it!

Below you'll find a general list of costs for buying a home. We will provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs

• Escrow Account
• Various Taxes
• Costs related to "originating" your loan
• Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
• Appraisal Costs
• Getting Your Credit Report
• Up-front Interest Payment

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

• Title Insurance
• Flood or Earthquake Insurance
• Private Mortgage Insurance (PMI)

First Residential Mortgage can answer questions about these closing costs. Give us a call at (831) 459-6073.