How do Closing Costs Work?

There are certain standard costs associated with closing the sale of a house. Sellers and buyers customarily share these closing costs, as specified in the real estate sales contract.

As you'll see below, many of the costs result from getting your mortgage. At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs specified in the Loan Estimate are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the LE and closing. We handle questions about closing costs every day at F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), so don't hesitate to contact us if you have questions.

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

Standard Closing Costs

Loan-Related Costs
  • Loan Origination Fee
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Obtaining Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Flood / Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can help you understand closing costs. Call us: 214-300-8756.



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