How do Closing Costs Work?

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Every home sale involves certain costs. Sellers and buyers almost always share these closing costs, as the sales contract specifies.

As indicated below, many of the costs result from getting your mortgage. Since PrimeLending, a PlainsCapital Company has extensive experience with mortgages & closings, we often explain the details of closing costs.

The Good Faith Estimate (Also know as the GFE)

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 our experience with mortgage loans, but costs often change a little bit between the Good Faith Estimate (GFE) and closing. We explain Good Faith Estimates with buyers every day, so we'd be glad to answer your questions about closing costs.

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

Standard Closing Costs

Loan-Related Costs

• Loan Origination Fee
• Points — These are costs you pay up-front to lower your interest rate (optional)
• Appraisal Fee
• Credit Report
• Up-front Interest Payment
• Escrow Account
• Various Taxes

Property Taxes

• Insurance
• Recording Fees and Transfer Taxes

Homeowners Insurance

• Private Mortgage Insurance (PMI)
• Title Insurance
• Flood / Quake Insurance

PrimeLending, a PlainsCapital Company can answer questions about these closing costs. Call us: 1-866-413-1224.