How do Closing Costs Work?

All residential real estate transactions incurs certain fixed costs. Sellers and buyers usually share these closing costs, as specified in the real estate sales contract.

Many of the closing costs associated with buying residential real estate are associated with getting the mortgage loan. Since First Southeast Mortgage Corporation is highly experienced with mortgages & closings, we often explain the details of closing costs.

Good Faith Estimates (GFEs)

Buyers 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 Good Faith Estimate are estimated based on our experience with mortgage loans, but costs usually vary a little bit between the Good Faith Estimate (GFE) and closing. We answer buyers' questions about closing costs every day at First Southeast Mortgage Corporation, so don't hesitate to contact us if you have questions.

Below is a generic list of closing costs. We will provide you with a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Taxes
  • Loan Origination Fee
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)

First Southeast Mortgage Corporation can answer questions about these closing costs. Give us a call: 954.920.9799.

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