How do Closing Costs Work?
"Closing Costs" are the fees that cover various services involved when you sell or buy a home. Buyers and sellers usually negotiate these closing costs.
As the list below indicates, many of the closing costs result from getting your mortgage. Since Advantage Funding has extensive experience with mortgages & closings, we can help you understand your closing costs.
The Good Faith Estimate (Also know as the GFE)
Buyers will receive a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing cost estimate comes out of our past experience. It's important to note that while our GFEs are very accurate, we cannot always predict your costs to the penny. We review Good Faith Estimates with buyers almost every day, so we'd be glad to answer any questions you have about closing costs.
Below is a fairly generic list of costs for buying a home. We will always provide a specific list of your closing costs when we deliver your Good Faith Estimate.
Standard Closing Costs
- Appraisal Fee
- Credit Report
- Interest Payment
- Escrow Account
- Loan-related costs
- Points — A fee paid to lower your interest rate (optional)
- Recording Fees and Transfer Taxes
- Title Insurance
- Flood or Quake Insurance
- Private Mortgage Insurance (PMI)
Advantage Funding can answer questions about these closing costs. Call us: 925-628 6200.