How do Closing Costs Work?
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Every home sale involves certain fixed costs. Buyers and sellers customarily share these closing costs, as specified in the sales contract.
As indicated below, many of the buyer's costs are related to the costs of originating the mortgage loan. Since Prosperity Co. dba Prosperity Mortgage Co. is highly experienced with closings and mortgages, we can help you understand your closing costs.
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. This cost estimate is based on our past experience. Please note that while our GFEs are very accurate, we cannot always predict costs to the penny. We handle buyers' questions about these costs every day at Prosperity Co. dba Prosperity Mortgage Co., so please feel free to contact us if you have questions.
We've provided a general list of these costs below, but we'll give you a specific list of closing costs, with amounts, soon after you have completed your loan application. At Prosperity Co. dba Prosperity Mortgage Co., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Loan Origination Fee
- Points — lower your mortgage interest rate (optional)
- Appraisal Costs
- Pulling Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Transfer Taxes & Recording Fees
- Title Insurance
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
Prosperity Co. dba Prosperity Mortgage Co. can answer questions about these closing costs. Give us a call: (630) 305-9207.