How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of a house. Sellers and buyers negotiate the payment of these closing costs.

As you'll see below, many of the buyer's closing costs are related to the costs of getting the loan. Since Family Mortgage Company of Hawaii, Inc. NMLS #244497 is highly experienced with mortgages and closings, we can help you understand your closing costs.

Good Faith Estimates (GFEs)

Buyers will receive a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs specified in the GFE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between delivery of the GFE and closing. We answer buyers' questions about closing costs every day at Family Mortgage Company of Hawaii, Inc. NMLS #244497, 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 provide you with a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Various Taxes
  • Costs associated with "originating" your loan
  • Points — lower your interest rate (optional)
  • Appraisal Fee
  • Obtaining Your Credit Report
  • Interest Payment
  • Escrow Account
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance if applicable

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can help you understand closing costs. Call us at (808) 935-0678.

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