What are Closing Costs?
Every home sale involves fixed costs. Buyers and sellers usually split these closing costs, as specified in the real estate sales contract.
As indicated below, many of the buyer's costs are related to the costs of getting the mortgage loan. Since Real Property Finance is highly experienced with mortgages and closings, we can help you understand your closing costs.
The Good Faith Estimate (Also know as the GFE)
Buyers will get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing cost estimate is based on the loan officer's past experience. Please note that while our GFEs are very accurate, we can't always estimate costs to the penny. We go over Good Faith Estimates with buyers every day, so we'd be glad to answer your questions about closing costs.
Below is a fairly general list of closing costs. We will provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Various Taxes
- Loan Origination Fee
- Points — A fee paid to lower your mortgage interest rate (optional)
- Appraisal Fee
- Obtaining Your Credit Report
- Up-front Interest Payment
- Escrow Account
- Transfer Taxes & Recording Fees
- Private Mortgage Insurance (PMI)
- Title Insurance
- Flood or Earthquake Insurance if applicable
Real Property Finance can answer questions about these closing costs. Call us: 310-379-5997.
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