How do Closing Costs Work?

There are certain standard costs associated with closing the sale of a house. Buyers and sellers usually share these costs, as the sales contract specifies.

As indicated below, many of the buyer's closing costs are related to the costs of getting the mortgage loan. Since First Community Bank of Central Al. is highly experienced with mortgages & closings, we are closing cost experts.

The Loan Estimate (Also known as the LE)

Very soon after you submit your application, we'll provide you with the "Loan Estimate" of your closing costs. This closing cost estimate comes out of our past experience. Please note that while our LEs are very precise, we can't always estimate your costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that can change slightly at closing.

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 have completed your application. At First Community Bank of Central Al., we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Points — lower your interest rate (optional)
  • Appraisal Fee
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan-related costs
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)

At First Community Bank of Central Al., we answer questions about closing costs every day. Give us a call: (334) 285-8850.

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