How do Closing Costs Work?

"Closing Costs" are the fees that pay for various services involved in the sale of a house. Buyers and sellers often negotiate to decide how to share these costs.

As you'll see below, many of the costs result from getting your mortgage. At Abundance Home Mortgage, we are highly experienced in mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Very shortly after you apply for a loan, we'll provide you with a "Good Faith Estimate" of your costs. The closing costs enumerated in the GFE are estimated based on Abundance Home Mortgage's experience with mortgage loans, but costs often vary a little bit between delivery of the Good Faith Estimate (GFE) and closing. We field questions about closing costs every day at Abundance Home Mortgage, so please be sure to contact us if you have questions.

Below you'll find a general list of costs for buying a home. We will always provide you with a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood / Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Abundance Home Mortgage can help you understand closing costs. Give us a call at (512) 335-7800.

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