How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of residential real estate. Sellers & buyers negotiate these closing costs.

As you'll see below, many of the costs result from getting your mortgage. Since The Reen Team at American Pacific Mortgage has extensive experience with mortgages & closings, we can help you understand your closing costs.

Loan Estimate (LE)

Buyers will receive a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the LE are estimated based on our experience with mortgage loans, but costs often change by small amounts between delivery of the LE and closing. We field buyers' questions about these costs every day at The Reen Team at American Pacific Mortgage, so please feel free to contact us if you have questions.

We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, very soon after you complete your application. At The Reen Team at American Pacific Mortgage, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan-related costs
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
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 at (408) 626-1879.

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