How do Closing Costs Work?

Looking for mortgage advice? We can help! Call us at 903-561-2603. Want to get started? Apply Online Now.

Every home sale incurs certain costs. Buyers and sellers customarily split these costs, as specified in the real estate sales contract.

As you'll see below, many of the buyer's costs are related to the costs of originating the mortgage loan. Since Cooperative Teachers Credit Union is highly experienced with mortgages and closings, we can help you understand your closing costs.

Good Faith Estimate (Also know as the GFE)

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. This cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very precise, we can't always estimate closing costs to the penny. We will be glad to review the "Good Faith Estimate," answering questions and highlighting costs that can vary a little bit at closing.

We've provided a general list of these costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you complete your application. At Cooperative Teachers Credit Union, 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
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Pulling Your Credit Report
  • Up-front Interest Payment
  • Escrow Account
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
At Cooperative Teachers Credit Union, we answer questions about closing costs every day. Call us at 903-561-2603.