How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved when you sell or buy a home. Sellers & buyers usually negotiate these costs.

As the list below indicates, many of the costs result from getting your loan. Since First Community Bank of Central Al. is highly experienced with mortgages & closings, we are closing cost experts.

The Loan Estimate (LE)

Very soon after you submit your application, we'll give you a "Loan Estimate" of your costs. The closing costs spelled out in the LE are estimated based on our experience with mortgage loans, but costs often change a little bit between the Loan Estimate (LE) and closing. We go over LEs with buyers almost every day, so we'd be glad to answer the you have about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Various Taxes
  • Loan Origination Fee
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Pulling Your Credit Report
  • Interest Payment
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)

First Community Bank of Central Al. can answer questions about these closing costs. Call us: (334) 285-8850.

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