How do Closing Costs Work?
"Closing Costs" are the fees which pay for the various services involved in the sale of residential real estate. Buyers and sellers negotiate these closing costs.
As the list below indicates, many of the costs result from getting your mortgage. At Family Mortgage Company of Hawaii, Inc. NMLS #244497, we have extensive experience in mortgage lending, so we can compile a comprehensive report on mortgage-related closing costs in your "Loan Estimate".
Loan Estimate (LE)
Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on Family Mortgage Company of Hawaii, Inc. NMLS #244497's experience with mortgage loans, but costs often change by small amounts between delivery of the Loan Estimate (LE) and closing. We will be glad to review the "Loan Estimate," answering your questions and highlighting costs that can vary a little bit at closing.
Below you'll find 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 give you a Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Fee
- Credit Report
- Interest Payment
- Escrow Fees
- Various Taxes
- Loan Origination Fee
Property Taxes
- Insurance
- Recording Fees & Transfer Taxes
Homeowners Insurance
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood / Quake Insurance
Family Mortgage Company of Hawaii, Inc. NMLS #244497 can help you understand closing costs. Call us at (808) 935-0678.