What are Closing Costs?

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There are certain standard costs associated with closing the sale of a house. Buyers and sellers customarily split these closing costs, as specified in the sales contract.

As you'll see below, many of the buyer's closing costs are related to the costs of getting the loan. At First National Bank, we are highly experienced in residential mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimate (Also know as the GFE)

Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs specified in the GFE are estimated based on First National Bank's experience with mortgage loans, but costs often change by small amounts between delivery of the Good Faith Estimate (GFE) and closing. We go over GFEs with buyers almost every day, so we are happy to answer your questions about closing costs.

Below you'll find a fairly general list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we give you a Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs

• Getting YourCredit Report
• Up-front Interest Payment
• Escrow Fees
• Various Taxes
• Costs associated with "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Costs

Property Taxes

• Insurance
• Transfer Taxes and Recording Fees

Homeowners Insurance

• Title Insurance
• Flood / Earthquake Insurance
• Private Mortgage Insurance (PMI)

First National Bank can answer questions about these closing costs. Call us at (575)437-4880.