How do Closing Costs Work?
"Closing Costs" are the fees which cover various services involved when you sell or buy a home. Sellers & buyers negotiate the payment of these costs.
As indicated below, many of the costs result from getting your loan. Since Real Property Finance is highly experienced with mortgages and closings, we are closing cost experts.
Good Faith Estimates (GFEs)
Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between the Good Faith Estimate (GFE) and closing. We explain GFEs with buyers almost every day, so we'd be glad to answer any questions you have about closing costs.
We've provided a general list of these costs below, but we will give you a specific list of closing costs, with amounts, soon after you have completed your application. At Real Property Finance, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.
Standard Closing Costs
- Interest Payment
- Escrow Account
- Various Taxes
- Loan Origination Fee
- Points — lower your interest rate (optional)
- Appraisal Fee
- Credit Report
- Transfer Taxes & Recording Fees
- Title Insurance
- Flood / Earthquake Insurance if applicable
- Private Mortgage Insurance (PMI)
Real Property Finance can help you understand closing costs. Call us: 310-379-5997.
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