How do Closing Costs Work?

"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers and buyers usually negotiate the payment of these closing costs.

As you'll see below, many of the buyer's closing costs cover the costs of originating the mortgage loan. Since Tenby J. Dahman has extensive experience with mortgages and closings, we are closing cost experts.

The Good Faith Estimate (GFE)

Soon after you apply for a loan, we'll provide you with a "Good Faith Estimate" of your closing costs. We base this cost estimate on our many years of past experience. It's important to note that while our GFEs are very precise, we can't always predict your costs to the penny. We will be glad to review the "Good Faith Estimate," answering your questions and highlighting costs that sometimes change slightly at closing.

Below is a generic list of costs for buying a home. We will always provide a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Fees
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Fee
  • Pulling Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

At Tenby J. Dahman, we answer questions about closing costs every day. Call us: (303) 862-7760.