How do Closing Costs Work?

All residential real estate transactions involves costs. Buyers and sellers usually split these closing costs, as the real estate sales contract specifies.

Many of the closing costs associated with buying a house are associated with getting the loan. Since Family Mortgage Company of Hawaii, Inc. NMLS #244497 is highly experienced with closings & mortgages, we are closing cost experts.

The Good Faith Estimate (Also know as the GFE)

Soon after you apply for a loan, we will provide you with a "Good Faith Estimate" of your costs. This closing cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very accurate, we cannot always predict costs to the penny. We explain Good Faith Estimates with buyers almost every day, so we'd be glad to answer your questions about closing costs.

Below is a general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Costs related to "originating" your loan
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance
  • Private Mortgage Insurance (PMI)

Family Mortgage Company of Hawaii, Inc. NMLS #244497 can answer questions about these closing costs. Give us a call at (808) 935-0678.

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