How do Closing Costs Work?

"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Sellers & buyers usually negotiate these closing costs.

As you'll see below, many of the buyer's closing costs are related to the costs of originating the mortgage loan. Since The Reen Team at American Pacific Mortgage is highly experienced with mortgages & closings, we are closing cost experts.

Good Faith Estimates (GFEs)

Very shortly after you submit your application, we will provide you with the "Good Faith Estimate" of your costs. This cost estimate comes out of our past experience. It's important to note that while our GFEs are very accurate, we can't always predict your costs to the penny. We field buyers' questions about closing costs every day at The Reen Team at American Pacific Mortgage, so please be sure to contact us if you have questions.

Below is a fairly general list of closing costs. We will provide you with a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

At The Reen Team at American Pacific Mortgage, we answer questions about closing costs every day. Give us a call at (408) 626-1879.

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