What are Closing Costs?
"Closing Costs" are the fees that cover various services involved when you sell or buy a house. Sellers and buyers negotiate to determine who will pay different portions of these closing costs.
Many of the costs associated with buying a home are associated with getting the mortgage loan. At Northeast Bancorp of America, Inc., we have extensive experience in mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Good Faith Estimate".
Good Faith Estimates (GFEs)
Buyers will get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs spelled out in the Good Faith Estimate are estimated based on our experience with mortgage loans, but costs often vary a little bit between the Good Faith Estimate (GFE) and closing. We answer buyers' questions about these costs every day at Northeast Bancorp of America, Inc., so please feel free to contact us if we can help answer your questions.
We've provided a general list of these costs below, but we'll give you a specific list of closing costs, with amounts, very soon after you complete your application. At Northeast Bancorp of America, Inc., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Costs
- Credit Report
- Transfer Taxes and Recording Fees
- Title Insurance
- Flood / Quake Insurance
- Private Mortgage Insurance (PMI)
At Northeast Bancorp of America, Inc., we answer questions about closing costs every day. Call us: (440) 234-9660.