How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of a home. Buyers & sellers negotiate to determine who will pay different portions of these closing costs.

As the list below indicates, many of the closing costs result from getting your loan. Since F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) has extensive experience with mortgages and closings, we can help you understand your closing costs.

Loan Estimate (LE)

Very soon after you submit your application, we will provide you with a "Loan Estimate" of your closing costs. The closing costs spelled out in the LE are estimated based on F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org)'s experience with mortgage loans, but costs usually change a little bit between the Loan Estimate (LE) and closing. We explain Loan Estimates with buyers almost every day, so we will be happy to answer any questions you have about closing costs.

We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you complete your loan application. At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Getting YourCredit Report
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
Property Taxes
  • Insurance
  • Transfer Taxes and Recording Fees
Homeowners Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we answer questions about closing costs every day. Give us a call at 214-300-8756.



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