How do Closing Costs Work?
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Every home sale involves fixed costs. Buyers and sellers almost always split these costs, as the real estate sales contract specifies.
As indicated below, many of the buyer's costs cover the costs of getting the mortgage loan. Since Arch Mortgage Corporation is highly experienced with mortgages and closings, we are closing cost experts.
The Good Faith Estimate (GFE)
Very shortly after you submit your application, we will give you a "Good Faith Estimate" of your closing costs. The closing costs spelled out in the GFE are estimated based on our experience with mortgage loans, but costs often change a little bit between the GFE and closing. We review GFEs with buyers every day, so we will be happy to answer the you have about closing costs.
Below is a general list of closing costs. We will provide you with a specific list of your closing costs when we give you a Good Faith Estimate.
Standard Closing CostsLoan-Related Costs
- Various Taxes
- Costs related to "originating" your loan
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Escrow Account
- Transfer Taxes and Recording Fees
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Quake Insurance if applicable
Arch Mortgage Corporation can help you understand closing costs. Call us at 561.775.2724.