How do Closing Costs Work?
Every home sale incurs costs. Sellers and buyers almost always share these costs, as the sales contract specifies.
Many of the costs associated with buying a house are associated with getting the mortgage loan. Since Diamond Mortgage, LLC has extensive experience with mortgages & closings, we are closing cost experts.
Good Faith Estimate (Also know as the GFE)
Very soon after you submit your application, we will provide you with the "Good Faith Estimate" of your closing costs. The closing cost estimate comes out of our past experience. Please note that while our GFEs are very precise, we cannot always predict closing costs to the penny. We handle buyers' questions about these costs every day at Diamond Mortgage, LLC, so please be sure to ask if we can help answer your questions.
Below is a fairly generic 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
- Costs associated with "originating" your loan
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Fee
- Getting Your Credit Report
- Interest Payment
- Escrow Account
- Various Taxes
- Transfer Taxes and Recording Fees
- Flood / Earthquake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance