What are Closing Costs?

"Closing Costs" are the fees which pay for the various services involved in the sale of residential real estate. Sellers & buyers usually negotiate to decide how to split these closing costs.

Many of the costs associated with buying a house are associated with getting a mortgage loan. At Strategic Home Loans, Inc., we have extensive experience in mortgage lending, so we can provide you with a comprehensive list of mortgage-related costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Soon after you submit your application, we will provide you with the "Good Faith Estimate" of your closing costs. We base this cost estimate on our extensive past experience. It's important to note that while our GFEs are very precise, we cannot always estimate your costs to the penny. We will be glad to review the "Good Faith Estimate," answering your questions and highlighting costs that sometimes change slightly 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, very soon after you have completed your application. At Strategic Home Loans, Inc., 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
  • Costs associated with "originating" your loan
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Account
  • Taxes
Property Taxes
  • Insurance
  • Transfer Taxes and Recording Fees
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance if applicable

Strategic Home Loans, Inc. can help you understand closing costs. Give us a call: (805) 496-7500.