How do Closing Costs Work?
"Closing Costs" are the fees which cover the various services involved in the sale of a home. Buyers and sellers usually negotiate to decide how to share these costs.
As you'll see below, many of the buyer's costs cover the costs of originating the loan. Since Prime Capital Mortgage Corp is highly experienced with closings & mortgages, we are closing cost experts.
Good Faith Estimates (GFEs)
Buyers will get 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 Prime Capital Mortgage Corp's experience with mortgage loans, but costs usually change a little bit between delivery of the Good Faith Estimate (GFE) and closing. We review Good Faith Estimates with buyers almost every day, so we are happy to answer any questions you have about closing costs.
Below you'll find a fairly generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Loan Origination Fee
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Recording Fees and Transfer Taxes
- Title Insurance
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
Prime Capital Mortgage Corp can help you understand closing costs. Give us a call at 248-644-1200.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.