Closing Costs

"Closing Costs" are the fees which pay for various services involved when you sell or buy residential real estate. Sellers & buyers almost always negotiate to determine who will pay different portions of these costs.

As you'll see below, many of the buyer's closing costs are related to the costs of originating the loan. At First Community Bank of Central Al., we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Loan Estimate".

Loan Estimates (LEs)

Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. This cost estimate is based on the loan officer's past experience. Please note that while our LEs are very accurate, 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.

Below you'll find a fairly general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we give you a 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 Fee
  • Getting Your Credit Report
  • Interest Payment
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Quake 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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