What are Closing Costs?

"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Buyers & sellers negotiate the payment of these closing costs.

As indicated below, many of the costs result from getting your mortgage. At Advantage Funding, we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive report on mortgage-related closing costs in your "Loan Estimate".

Loan Estimates (LEs)

Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. We base this cost estimate on our extensive past experience. It's important to note that while our LEs are very precise, we can't always predict your closing costs to the penny. We go over Loan Estimates with buyers almost every day, so we'd be glad to answer any questions you have about closing costs.

We've provided a general list of these costs below, but we will provide you a specific list of closing costs, with amounts, 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

Loan-Related Costs

• Credit Report
• Up-front Interest Payment
• Escrow Fees
• Various Taxes
• Loan-related costs
• Points — lower your mortgage interest rate (optional)
• Appraisal Costs

Property Taxes

• Recording Fees and Transfer Taxes
• Insurance

Homeowners Insurance

• Private Mortgage Insurance (PMI)
• Title Insurance
• Flood or Earthquake Insurance

At Advantage Funding, we answer questions about closing costs every day. Call us at 925-628 6200.