How do Closing Costs Work?

Every home sale incurs costs. Sellers and buyers usually share these costs, as specified in the real estate sales contract.

As indicated below, many of the costs result from getting your loan. Since The Lending Source has extensive experience with closings & mortgages, we can help you understand your closing costs.

The Good Faith Estimate (Also know as the GFE)

Buyers will get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. We base this cost estimate on our many years of past experience. Please note that while our GFEs are very precise, we can't always estimate costs to the penny. We answer buyers' questions about closing costs every day at The Lending Source, so please feel free to contact us if we can help answer your questions.

Below is a fairly general list of closing costs. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

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

At The Lending Source, we answer questions about closing costs every day. Give us a call: (973) 601-2122.

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