How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved in the sale of residential real estate. Sellers & buyers almost always negotiate to determine who will pay different portions of these closing costs.

As you'll see below, many of the buyer's closing costs are related to the costs of originating the loan. At Statewide Funding, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on costs related to your mortgage in your "Good Faith Estimate".

The Good Faith Estimate (GFE)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs specified in the GFE are estimated based on our experience with mortgage loans, but costs usually change by small amounts between the Good Faith Estimate (GFE) and closing. We go over Good Faith Estimates with buyers every day, so we are happy to answer any questions you have about closing costs.

We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, very soon after you complete your loan application. At Statewide 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
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Taxes
  • Loan Origination Fee
  • Points — These are costs you pay up-front to lower your interest rate (optional)
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Statewide Funding can answer questions about these closing costs. Give us a call at (415) 456-7802.

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