How do Closing Costs Work?

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Certain standard costs are related to closing the sale of a home. Buyers and sellers almost always split these costs, as specified in the sales contract.

As indicated below, many of the closing costs result from getting your loan. At Manhattan Lending, LLC, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your "Good Faith Estimate".

The Good Faith Estimate (Also know as the GFE)

Buyers get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs usually change a little bit between delivery of the Good Faith Estimate (GFE) and closing. We explain GFEs with buyers almost every day, so we'd be glad to answer the you have about closing costs.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, soon after you have completed your loan application. At Manhattan Lending, LLC, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

• Costs associated with "originating" your loan
• Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
• Appraisal Fee
• Obtaining Your Credit Report
• Up-front Interest Payment
• Escrow Fees
• Various Taxes

Property Taxes

• Transfer Taxes and Recording Fees
• Insurance

Homeowners Insurance

• Flood or Quake Insurance if applicable
• Private Mortgage Insurance (PMI)
• Title Insurance

At Manhattan Lending, LLC, we answer questions about closing costs every day. Give us a call: 512.257.3749.