How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of a house. Sellers and buyers almost always negotiate to determine who will pay different portions of these closing costs.

Many of the costs associated with buying residential real estate are associated with getting a mortgage. At Family Mortgage Company of Hawaii, Inc. NMLS #244497, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimate (GFE)

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. 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 cannot always estimate your closing 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 you'll find 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
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
Property Taxes
  • Recording Fees & Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood / Earthquake 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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