How do Closing Costs Work?

Every home sale incurs costs. Sellers and buyers almost always split these closing costs, as specified in the sales contract.

As indicated below, many of the closing costs result from getting your mortgage loan. At The Reen Team at American Pacific Mortgage, we are highly experienced in mortgage lending, so we can compile a comprehensive list of costs related to your mortgage in your "Good Faith Estimate".

Good Faith Estimate (GFE)

Very soon after you submit your application, we'll give you the "Good Faith Estimate" of your closing costs. The closing costs enumerated in the GFE are estimated based on The Reen Team at American Pacific Mortgage's experience with mortgage loans, but costs often change a little bit between the Good Faith Estimate (GFE) and closing. We answer buyers' questions about closing costs every day at The Reen Team at American Pacific Mortgage, so don't hesitate to contact us if we can help answer your questions.

Below you'll find 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

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

The Reen Team at American Pacific Mortgage can answer questions about these closing costs. Call us at (408) 626-1879.

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