How do Closing Costs Work?
Every home sale involves certain costs. Sellers and buyers usually split these costs, as specified in the real estate sales contract.
Many of the closing costs associated with buying residential real estate are associated with getting the mortgage. Since Superior Mortgage Services, Inc. is highly experienced with mortgages & closings, we often explain the details of 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. The closing costs enumerated in the Good Faith Estimate are estimated based on Superior Mortgage Services, Inc.'s experience with mortgage loans, but costs usually vary a little bit between delivery of the Good Faith Estimate (GFE) and closing. We will be glad to review the "Good Faith Estimate," answering questions and highlighting costs that sometimes vary a little bit at the closing table.
Below you'll find a fairly general list of closing costs. We will always provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Escrow Fees
- Various Taxes
- Loan Origination Fee
- Recording Fees and Transfer Taxes
- Title Insurance
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
Superior Mortgage Services, Inc. can answer questions about these closing costs. Give us a call at 513-474-0899.
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