What are Closing Costs?
"Closing Costs" are the fees which pay for various services involved in the sale of residential real estate. Buyers and sellers negotiate to decide how to share these costs.
Many of the costs associated with buying residential real estate are associated with getting a loan. At Advantage Funding, we have extensive experience in residential mortgage lending, so we can compile a comprehensive list of closing costs related to your mortgage in your "Good Faith Estimate".
The Good Faith Estimate (Also know as the GFE)
Very shortly after you submit your application, we will provide you with a "Good Faith Estimate" of your costs. The closing costs specified in the GFE are estimated based on our experience with mortgage loans, but costs often change a little bit between the Good Faith Estimate (GFE) and closing. We field questions about these costs every day at Advantage Funding, so don't hesitate to contact us if we can help answer your 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 loan application. At Advantage Funding, we don't believe in surprises, so if your costs change, we will be sure to let you know immediately.
Standard Closing Costs
- Various Taxes
- Costs related to "originating" your loan
- Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
- Appraisal Costs
- Credit Report
- Interest Payment
- Escrow Fees
- Recording Fees and Transfer Taxes
- Title Insurance
- Flood / Quake Insurance
- Private Mortgage Insurance (PMI)
Advantage Funding can help you understand closing costs. Give us a call at 925-628 6200.