What are Closing Costs?

All residential real estate transactions incurs costs. Sellers and buyers customarily split these closing costs, as specified in the sales contract.

As you'll see below, many of the buyer's costs cover the costs of originating the 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 costs in your "Good Faith Estimate".

The Good Faith Estimate (GFE)

Soon after you apply for a loan, we will provide you with the "Good Faith Estimate" of your closing costs. The closing costs specified in the GFE are estimated based on our experience with mortgage loans, but costs usually vary a little bit between delivery of the Good Faith Estimate (GFE) and closing. We go over GFEs with buyers every day, so we are happy to answer your questions about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Costs associated with "originating" your loan
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
  • Escrow Account
  • Various Taxes
Property Taxes
  • Insurance
  • Transfer Taxes and Recording Fees
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance
  • Private Mortgage Insurance (PMI)

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

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