How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved in the sale of a home. Buyers and sellers almost always negotiate to determine who will pay different portions of these costs.

As you'll see below, many of the buyer's costs are related to the costs of originating the mortgage loan. At Hawk Mortgage Group, we have extensive experience in mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Very soon after you submit your application, we will give you a "Good Faith Estimate" of your costs. The cost estimate is based on the loan officer's past experience. It's important to note that while our GFEs are very precise, we can't always predict costs to the penny. We explain GFEs with buyers every day, so we'd be glad to answer any questions you have about closing costs.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you complete your loan application. At Hawk Mortgage Group, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Taxes
  • Costs associated with "originating" your loan
  • Points — lower your mortgage interest rate (optional)
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Hawk Mortgage Group can answer questions about these closing costs. Call us at (443) 619-7900.

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