How do Closing Costs Work?

All residential real estate sales incurs costs. Buyers and sellers customarily share these costs, as the real estate sales contract specifies.

Many of the closing costs associated with buying a home are associated with getting a mortgage. At The Reen Team at American Pacific Mortgage, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Good Faith Estimate".

Good Faith Estimate (GFE)

Buyers will get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs spelled out in the GFE are estimated based on The Reen Team at American Pacific Mortgage's experience with mortgage loans, but costs often change by small amounts between the Good Faith Estimate (GFE) and closing. We answer questions about closing costs every day at The Reen Team at American Pacific Mortgage, so don't hesitate to contact us if you have questions.

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

Standard Closing Costs

Loan-Related Costs
  • Escrow Fees
  • Taxes
  • Costs associated with "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance if applicable

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

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