What are Closing Costs?

There are certain standard costs related to closing the sale of a house. Buyers and sellers almost always split these closing costs, as specified in the real estate sales contract.

Many of the closing costs associated with buying residential real estate are associated with getting a mortgage loan. At The Reen Team at American Pacific Mortgage, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on mortgage-related closing costs in your "Loan Estimate".

The Loan Estimate (LE)

Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs specified in the LE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between delivery of the Loan Estimate (LE) and closing. We will be glad to review the "Loan Estimate," answering questions and highlighting costs that sometimes vary a little bit at closing.

Below you'll find a generic list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan Origination Fee
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Costs
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance
  • Private Mortgage Insurance (PMI)

The Reen Team at American Pacific Mortgage can help you understand closing costs. Call us at (408) 626-1879.

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