How do Closing Costs Work?
Searching for a loan? We'll be glad to talk about our mortgage offerings! Give us a call at (408) 255-3978. Want to get started? Apply Here
Certain standard costs are associated with closing the sale of a home. Buyers and sellers usually split these closing costs, as specified in the real estate sales contract.
Many of the costs associated with buying residential real estate are associated with getting a mortgage loan. At Real Estate Loan 4 U, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of closing costs related to your mortgage in your "Good Faith Estimate".
The Good Faith Estimate (GFE)
Buyers will receive a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. 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 estimate 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 the closing table.
Below you'll find a fairly general list of costs for buying residential real estate. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Up-front Interest Payment
- Escrow Account
- Various Taxes
- Costs related to "originating" your loan
- Points — lower your interest rate (optional)
- Appraisal Fee
- Obtaining YourCredit Report
- Transfer Taxes and Recording Fees
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood / Quake Insurance
Real Estate Loan 4 U can answer questions about these closing costs. Call us: (408) 255-3978.