What are Closing Costs?
"Closing Costs" are the fees that cover various services involved in the sale of a home. Buyers and sellers almost always negotiate the payment of these closing costs.
Many of the costs associated with buying a home are associated with getting the mortgage loan. At MGM Mortgage Inc., we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on 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. We base this closing cost estimate on our extensive past experience. Please note that while our GFEs are very precise, we cannot always predict closing costs to the penny. We go over Good Faith Estimates with buyers almost every day, so we will be happy to answer any questions you have about closing costs.
We've provided a general list of closing costs below, but we will provide you a specific list of closing costs, with amounts, soon after you have completed your application. At MGM Mortgage Inc., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your interest rate (optional)
- Appraisal Costs
- Credit Report
- Transfer Taxes and Recording Fees
- Flood or Earthquake Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
MGM Mortgage Inc. can help you understand closing costs. Give us a call: 800-555-6144.