How do Closing Costs Work?

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There are certain standard costs related to closing the sale of a home. Sellers and buyers usually share these closing costs, as specified in the real estate sales contract.

As indicated below, many of the buyer's costs are related to the costs of originating the loan. At Hometown Mortgage Services, LLC, we have extensive experience in mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Good Faith Estimate".

The Good Faith Estimate (Also know as the GFE)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing cost estimate is based on our past experience. It's important to note that while our GFEs are very precise, we can't always predict your closing costs to the penny. We handle buyers' questions about these costs every day at Hometown Mortgage Services, LLC, so please be sure to ask if we can help answer your questions.

We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, soon after you complete your application. At Hometown Mortgage Services, LLC, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Loan Origination Fee
  • Points — lower your interest rate (optional)
  • Appraisal Fee
  • Getting Your Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Taxes
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood / Quake Insurance
Hometown Mortgage Services, LLC can help you understand closing costs. Call us at (352) 222-1135.

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