GFEIt is always made in good faith, but it’s more than just an estimate.

In every home sale have associated costs.  Sellers and buyers almost always split these closing costs, as specified in the real estate sales contract.

Good Faith Estimates (GFEs)

Buyers get a “Good Faith Estimate” of closing costs at the time the loan application is submitted to the lender so you will know all the costs associated with the mortgage loan.

Below is a general list of costs.  We will provide you a list of your closing costs, with amounts very soon after you complete the loan application process.  The Tulsa Mortgage Guy at Scissortail Financial does not believe in surprises, so should you costs change for any reason, we will be sure and let you know immediately when we are notified.

Standard Closing Costs

Loan-Related Costs

  • Escrow Account
  • Taxes
  • Loan Origination Fee
  • Points – A fee paid to lower you interest rate (optional)
  • Appraisal Fee

Property Taxes

  • Transfer Taxes & Recording Fees
  • Insurance

Homeowners Insurance

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

Loan – Related Closing Costs

Loan Origination Fee
This covers the administrative expenses in setting up and processing your loan.  The loan origination fee can be a percentage of the mortgage amount.

Points (optional)
This is an option for the home buyer in which points may be pay points in order to lower the interest rate at which the loan is going to be repaid.  Each point is equal to 1% of the mortgage amount.  As an example:  on a $175,000 loan, 1 point would equal $1,750.00.

Appraisal Fee
The fee associated for have the home appraised may be placed into the closing costs or payment may be required by the lender at the time the loan application is submitted.

Credit Report
A lender uses a credit report to determine the creditworthiness of a loan applicant.  This fee is waived by the Tulsa Mortgage Guy when an application is submitted.

Interest Payment
Usually the buyer is going to pay interest on the mortgage loan to cover the time between the closing date and when the 1st payment period begins.  As an example:  If closing is on April 15.  Your first monthly payment begins to accrue interest on May 1 with your first mortgage payment due June 1.  At closing an interest payment covering the accrual period between April 15 and June 30 may be required.

Escrow Account
At closing  there may be a payment required to fund the escrow account if the lender is paying home insurance, property taxes or any other expenses out of the escrow account.

Property Taxes
This is one cost usually prorated between the buyer and seller.  If a seller has paid the annual property taxes, usually the buyer reimburses the seller for the period in which the buyer will be occupying the property.  In like manner, if the taxes have not yet been paid, the seller typically reimburses the buyer for the period in which the buyer occupied the property.

Transfer Taxes and Recording Fees
This will be the costs for transferring ownership of the property and recording the purchase documents on the sale.  The fee is often calculated as a percentage of the sales price.