How do Closing Costs Work?

"Closing Costs" are the fees that pay for the various services involved in the sale of a house. Sellers and buyers often negotiate to determine who will pay different portions of these costs.

Many of the costs associated with buying residential real estate are associated with getting the loan. At Americn Hero Mortgage, 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 will provide you with the "Good Faith Estimate" of your costs. The closing costs specified in the Good Faith Estimate 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 Good Faith Estimates with buyers almost every day, so we are happy to answer the you have about closing costs.

We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you have completed your application. At Americn Hero Mortgage, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Fee
Property Taxes
  • Recording Fees & Transfer Taxes
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

Americn Hero Mortgage can help you understand closing costs. Give us a call: 754-202-4376.

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