How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved in the sale of residential real estate. Buyers & sellers almost always negotiate these costs.
As you'll see below, many of the costs result from getting your mortgage loan. Since Residential Mortgage Services is highly experienced with closings and mortgages, we can help you understand your 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. This cost estimate comes out of our past experience. Please note that while our GFEs are very precise, we cannot always estimate costs to the penny. We review Good Faith Estimates with buyers every day, so we'd be glad to answer your questions about closing costs.
Below is a general list of costs for buying a home. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Interest Payment
- Escrow Fees
- Taxes
- Costs associated with "originating" your loan
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Obtaining YourCredit Report
- Insurance
- Transfer Taxes & Recording Fees
- Flood / Quake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance