How do Closing Costs Work?
Shopping for a mortgage loan? We'd be thrilled to answer your questions about our many mortgage solutions! Call us at (216) 524-8500. Ready to get started? Apply Online Now
Every home sale incurs certain costs. Sellers and buyers usually split these costs, as the real estate sales contract specifies.
As you'll see below, many of the costs result from getting your mortgage. At MGM Mortgage Company, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on closing costs related to your mortgage in your "Good Faith Estimate".
Good Faith Estimates (GFEs)
Soon after you apply for a loan, we'll give you a "Good Faith Estimate" of your closing costs. We base this closing cost estimate on our extensive past experience. Please note that while our GFEs are very accurate, we can't always predict closing costs to the penny. We review Good Faith Estimates with buyers almost every day, so we are happy to answer your questions about closing costs.
Below is a generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we provide your Good Faith Estimate.
Standard Closing Costs
- Escrow Fees
- Loan-related costs
- Points — A fee paid to lower your interest rate (optional)
- Appraisal Costs
- Credit Report
- Up-front Interest Payment
- Recording Fees & Transfer Taxes
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
MGM Mortgage Company can help you understand closing costs. Give us a call: (216) 524-8500.