How do Closing Costs Work?

Every home sale involves costs. Sellers and buyers usually 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 loan. At Americn Hero Mortgage, we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimate (GFE)

Very shortly after you submit your application, we will provide you with the "Good Faith Estimate" of your costs. The closing costs enumerated in the Good Faith Estimate are estimated based on our experience with mortgage loans, but costs usually change a little bit between delivery of the Good Faith Estimate (GFE) and closing. We go over GFEs with buyers almost every day, so we will be happy to answer your questions 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 provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Interest Payment
  • Escrow Account
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Getting YourCredit Report
Property Taxes
  • Recording Fees & Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Americn Hero Mortgage can answer questions about these closing costs. Give us a call: 754-202-4376.

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