How do Closing Costs Work?
All residential real estate transactions incurs certain fixed costs. Sellers and buyers customarily split these costs, as specified in the sales contract.
As indicated below, many of the buyer's closing costs are related to the costs of getting the mortgage loan. At Acceptance Capital Mortgage Corporation, we are highly experienced in mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Good Faith Estimate".
Good Faith Estimate (Also know as the GFE)
Soon after you apply for a loan, we'll provide you with a "Good Faith Estimate" of your closing costs. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between delivery of the Good Faith Estimate (GFE) and closing. We explain GFEs with buyers every day, so we will be happy to answer the you have about closing costs.
We've provided a general list of closing costs below, but we'll give you a specific list of closing costs, with amounts, very soon after you complete your application. At Acceptance Capital Mortgage Corporation, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Appraisal Fee
- Obtaining Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — lower your interest rate (optional)
- Transfer Taxes & Recording Fees
- Title Insurance
- Flood or Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
At Acceptance Capital Mortgage Corporation, we answer questions about closing costs every day. Give us a call at (337) 453-0012.