How do Closing Costs Work?

Certain standard costs are related to closing the sale of a home. Buyers and sellers usually share these costs, as the sales contract specifies.

As the list below indicates, many of the closing costs result from getting your mortgage loan. At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we have extensive experience in mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your "Loan Estimate".

The Loan Estimate (LE)

Very shortly after you apply for a loan, we'll give you a "Loan Estimate" of your costs. The closing costs specified in the LE are estimated based on our experience with mortgage loans, but costs often vary a little bit between delivery of the LE and closing. We handle buyers' questions about closing costs every day at F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), so don't hesitate to ask if you have questions.

Below you'll find a fairly generic list of closing costs. We will always provide you with a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

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

F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about these closing costs. Give us a call: 214-300-8756.



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