What are Closing Costs?

Every home sale incurs costs. Buyers almost always pay these costs, as the real estate sales contract specifies, however, depending on State law the seller may be required to pay some of the closing costs. "Closing Costs" are the fees that cover various services involved when you sell or buy a home. These fees can be paid directly or indirectly by increasing the loan amount or charging a higher interest rate.

As the list below indicates, many of the closing costs result from getting your loan. Since SouthWind Mortgage, Inc. NMLS #276161 has extensive experience with mortgages & closings, we often explain the details of closing costs.

Getting The Loan Estimate

Shortly after you apply for a loan, we'll provide you with a Loan Estimate. The Loan Estimate details information like estimated interest rates, payments and fees, closing costs and more. This estimate is not an approval, but it's the first step toward obtaining your loan.

We review estimates with buyers every day, so we'd be glad to answer your questions about closing costs.

We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, very soon after you complete your loan application. At SouthWind Mortgage, Inc. NMLS #276161, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

• Points — A fee paid to lower your mortgage interest rate (optional)
• Appraisal Costs
• Obtaining Your Credit Report
• Up-front Interest Payment
• Escrow Account
• Loan-related costs

• Transfer Taxes & Recording Fees
• Insurance

• Title Insurance
• Flood / Earthquake Insurance
• Private Mortgage Insurance (PMI)