What are Closing Costs?

"Closing Costs" are the fees that pay for various services involved when you sell or buy a home. Sellers and buyers often negotiate to decide how to share these closing costs.

Many of the costs associated with buying a home are associated with getting a loan. At The Lending Source, we are highly experienced in mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. We base this closing cost estimate on our many years of past experience. It's important to note that while our GFEs are very precise, we can't always predict costs to the penny. We handle questions about these costs every day at The Lending Source, so don't hesitate to contact us if you have questions.

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

Standard Closing Costs

Loan-Related Costs
  • Loan Origination Fee
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Flood or Quake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

The Lending Source can answer questions about these closing costs. Call us at (973) 601-2122.

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