How do Closing Costs Work?

All residential real estate sales incurs certain fixed costs. Buyers and sellers almost always share these costs, as the sales contract specifies.

Many of the closing costs associated with buying a house are associated with getting a mortgage. At First Source Capital Mortgage, Inc., we are highly experienced in mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".

The Good Faith Estimate (Also know as the GFE)

Soon after you apply for a loan, we will provide you with the "Good Faith Estimate" of your closing costs. This closing cost estimate comes out of our past experience. Please note that while our GFEs are very accurate, we can't always estimate costs to the penny. We will be glad to review the "Good Faith Estimate," answering your questions and highlighting costs that sometimes change slightly at the closing table.

Below you'll find a generic list of closing costs. We will always provide you with 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 interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Various Taxes
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

First Source Capital Mortgage, Inc. can help you understand closing costs. Call us at 903-482-1123.

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