Closing Costs for Residential Real Estate Transactions

"Closing Costs" are the fees that cover the various services involved when you sell or buy residential real estate. Sellers and buyers usually negotiate to determine who will pay different portions of these costs.

As you'll see below, many of the buyer's closing costs are related to the costs of getting the mortgage loan. At Advantage Funding, we have extensive experience in residential mortgage lending, so we can compile a comprehensive report on costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Soon after you apply for a loan, we'll give you the "Loan Estimate" of your costs. The closing costs enumerated in the Loan Estimate are estimated based on our experience with mortgage loans, but costs often vary a little bit between delivery of the LE and closing. We go over Loan Estimates with buyers almost every day, so we will be happy to answer your questions about closing costs.

Below is a 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 Loan Estimate.

Standard Closing Costs

Loan-Related Costs

• Loan-related costs
• Points — A fee paid to lower your interest rate (optional)
• Appraisal Fee
• Credit Report
• Up-front Interest Payment
• Escrow Account
• Taxes

Property Taxes

• Recording Fees and Transfer Taxes
• Insurance

Homeowners Insurance

• Private Mortgage Insurance (PMI)
• Title Insurance
• Flood / Earthquake Insurance if applicable

Advantage Funding can answer questions about these closing costs. Give us a call at 925-628 6200.