How do Closing Costs Work?

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"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Sellers and buyers usually negotiate to decide how to split these closing costs.

Many of the costs associated with buying a home are associated with getting a mortgage. At Primary Residential Mortgage, Inc, we are highly experienced in mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between delivery of the Good Faith Estimate (GFE) and closing. We review Good Faith Estimates with buyers every day, so we will be happy to answer your questions about closing costs.

Below you'll find a general list of closing costs. We will provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs

• Points — A fee paid to lower your mortgage interest rate (optional)
• Appraisal Costs
• Pulling Your Credit Report
• Up-front Interest Payment
• Escrow Account
• Various Taxes
• Loan-related costs

Property Taxes

• Transfer Taxes & Recording Fees
• Insurance

Homeowners Insurance

• Title Insurance
• Flood / Quake Insurance if applicable
• Private Mortgage Insurance (PMI)

At Primary Residential Mortgage, Inc, we answer questions about closing costs every day. Give us a call at 802-253-2055.