How do Closing Costs Work?

Every home sale incurs fixed costs. Sellers and buyers customarily share these closing costs, as specified in the real estate sales contract.

Many of the closing costs associated with buying a house are associated with getting the loan. At First Community Bank of Central Al., we are highly experienced in residential mortgage lending, so we can compile a comprehensive list of mortgage-related costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. We base this cost estimate on our extensive past experience. Please note that while our GFEs are very precise, we can't always estimate your costs to the penny. We explain GFEs with buyers every day, so we'd be glad to answer your questions about closing costs.

Below you'll find a general list of costs for buying a home. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

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

First Community Bank of Central Al. can help you understand closing costs. Give us a call: (334) 285-8850.

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