How do Closing Costs Work?

Every home sale involves fixed costs. Buyers and sellers almost always split these costs, as the sales contract specifies.

Many of the costs associated with buying a house are associated with getting the loan. At Capacity Lending, LLC, we are highly experienced in 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)

Very soon after you submit your application, we'll give you the "Good Faith Estimate" of your costs. The closing cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very accurate, we cannot always estimate your closing costs to the penny. We will be glad to review the "Good Faith Estimate," answering questions and pointing out costs that sometimes change slightly at closing.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, soon after you have completed your loan application. At Capacity Lending, LLC, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Costs
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
  • Costs related to "originating" your loan
  • Points — A fee paid to lower your interest rate (optional)
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance

Capacity Lending, LLC can help you understand closing costs. Give us a call: 469-640-0400.

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