How do Closing Costs Work?

"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Sellers & buyers often negotiate to determine who will pay different portions of these closing costs.

As indicated below, many of the buyer's closing costs are related to the costs of getting the loan. Since F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) is highly experienced with closings & mortgages, we are closing cost experts.

Loan Estimate (LE)

Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs spelled out in the Loan Estimate are estimated based on F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org)'s experience with mortgage loans, but costs often vary by small amounts between delivery of the LE and closing. We handle buyers' questions about these costs every day at F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), so please feel free to ask 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, very 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
  • Escrow Fees
  • Various Taxes
  • Costs associated with "originating" your loan
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Getting Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance if applicable

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



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