Closing Costs for Home Real Estate Transactions
"Closing Costs" are the fees that pay for the various services involved in the sale of residential real estate. Buyers & sellers almost always negotiate to determine who will pay different portions of these costs.
As the list below indicates, many of the costs result from getting your mortgage. At Tenby J. Dahman, we have extensive experience in mortgage lending, so we can compile a comprehensive report on mortgage-related closing costs in your "Good Faith Estimate".
The Good Faith Estimate (Also know as the GFE)
Soon after you submit your application, we will provide you with a "Good Faith Estimate" of your closing costs. The closing costs spelled out in the Good Faith Estimate are estimated based on Tenby J. Dahman's experience with mortgage loans, but costs often change a little bit between the GFE and closing. We field questions about closing costs every day at Tenby J. Dahman, so don't hesitate to ask if you have questions.
Below is a fairly generic list of costs for buying residential real estate. We will always provide you with a specific list of your closing costs when we give you a Good Faith Estimate.
Standard Closing Costs
- Various Taxes
- Costs related to "originating" your loan
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Fee
- Credit Report
- Interest Payment
- Escrow Fees
- Recording Fees and Transfer Taxes
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood / Quake Insurance if applicable
At Tenby J. Dahman, we answer questions about closing costs every day. Give us a call at (303) 862-7760.