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
- 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
- Loan-related costs
- Recording Fees & Transfer Taxes
- 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.