How do Closing Costs Work?

All residential real estate sales incurs fixed costs. Buyers and sellers usually split these costs, as the sales contract specifies.

As you'll see below, many of the buyer's costs are related to the costs of originating the loan. At South County Mortgage, we are highly experienced in residential mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. This closing cost estimate is based on the loan officer's past experience. It's important to note that while our GFEs are very accurate, we can't always estimate closing costs to the penny. We field questions about these costs every day at South County Mortgage, so please be sure to contact us if we can help answer your questions.

We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you complete your loan application. At South County Mortgage, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Escrow Fees
  • Taxes
  • Loan-related costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Fee
  • Getting Your Credit Report
  • Interest Payment
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance

South County Mortgage can help you understand closing costs. Give us a call: (401) 583-4150.

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