Closing Costs for Home Real Estate Transactions

Every home sale incurs certain fixed costs. Sellers and buyers almost always split these costs, as specified in the real estate sales contract.

Many of the costs associated with buying residential real estate are associated with getting the mortgage loan. Since First Community Bank of Central Al. is highly experienced with closings & mortgages, we often explain the details of closing costs.

The Loan Estimate (LE)

Buyers will receive a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. We base this closing cost estimate on our extensive past experience. It's important to note that while our LEs are very precise, we can't always predict costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that sometimes vary a little bit at the closing table.

Below is a fairly generic list of closing costs. We will provide you with a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

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

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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