How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of a house. Sellers & buyers usually negotiate these costs.

As indicated below, many of the buyer's closing costs cover the costs of getting the loan. At MidTowne Mortgage, we have extensive experience in residential 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 apply for a loan, we will give you a "Good Faith Estimate" of your closing costs. This closing cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very precise, we can't always estimate your closing costs to the penny. We review Good Faith Estimates with buyers every day, so we will be happy to answer your questions about closing costs.

Below is a fairly general list of closing costs. We will always provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At MidTowne Mortgage, we answer questions about closing costs every day. Give us a call: (478) 746-2063.

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