What are Closing Costs?

"Closing Costs" are the fees which pay for various services involved in the sale of residential real estate. Sellers & buyers often 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 originating the mortgage loan. At Advantage Funding, we have extensive experience in residential mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Loan Estimate".

Loan Estimate (LE)

Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs spelled out in the Loan Estimate are estimated based on Advantage Funding's experience with mortgage loans, but costs often vary a little bit between the Loan Estimate (LE) and closing. We will be glad to review the "Loan Estimate," answering questions and highlighting costs that can vary a little bit at the closing table.

We've provided a general list of these costs below, but we'll give 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'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs

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

Property Taxes

• Insurance
• Recording Fees & Transfer Taxes

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: 925-628 6200.