What are Closing Costs?
Every home sale involves fixed costs. Buyers and sellers customarily split these costs, as the real estate sales contract specifies.
Many of the closing costs associated with buying a home are associated with getting a mortgage. Since PREMIERE MORTGAGE SERVICES INC. has extensive experience with mortgages & closings, we often explain the details of closing costs.
Good Faith Estimates (GFEs)
Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very accurate, we cannot always estimate closing costs to the penny. We answer questions about these costs every day at PREMIERE MORTGAGE SERVICES INC., so please be sure to ask if we can help answer your questions.
We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, soon after you complete your application. At PREMIERE MORTGAGE SERVICES INC., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Appraisal Costs
- Obtaining Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Costs related to "originating" your loan
- Points — A fee paid to lower your interest rate (optional)
- Recording Fees & Transfer Taxes
- Flood / Quake Insurance if applicable
- Private Mortgage Insurance (PMI)
- Title Insurance
At PREMIERE MORTGAGE SERVICES INC., we answer questions about closing costs every day. Give us a call at 978-422-2311.