How do Closing Costs Work?

There are certain standard costs associated with closing the sale of a house. Buyers and sellers almost always share these costs, as specified in the sales contract.

As indicated below, many of the buyer's closing costs cover the costs of originating the loan. Since Statewide Funding is highly experienced with mortgages and closings, we can help you understand your closing costs.

The Good Faith Estimate (GFE)

Very shortly after you apply for a loan, we will give you the "Good Faith Estimate" of your closing costs. This cost estimate comes out of the loan officer's past experience. Please note that while our GFEs are very accurate, we can't always estimate closing costs to the penny. We handle buyers' questions about these costs every day at Statewide Funding, so don't hesitate to contact us if you have questions.

We've provided a general list of closing costs below, but we will give you a specific list of closing costs, with amounts, soon after you complete your 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
  • Escrow Account
  • Taxes
  • Loan-related costs
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Flood / Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

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

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