Closing Costs for Residential Real Estate Transactions

"Closing Costs" are the fees that pay for the various services involved when you sell or buy a house. Buyers & sellers almost always negotiate to decide how to split these closing costs.

As you'll see below, many of the closing costs result from getting your loan. Since First Community Bank of Central Al. has extensive experience with mortgages and closings, we often explain the details of closing costs.

The Loan Estimate (Also known as the LE)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. This closing cost estimate is based on the loan officer's past experience. It's important to note that while our LEs are very accurate, we can't always predict your closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that sometimes change slightly at closing.

Below you'll find a fairly generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Fees
  • Taxes
  • Costs associated with "originating" your loan
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

First Community Bank of Central Al. can help you understand closing costs. Give us a call at (334) 285-8850.

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