What are Closing Costs?

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"Closing Costs" are the fees that pay for various services involved in the sale of a house. Buyers and sellers often negotiate the payment of these costs.

As you'll see below, many of the closing costs result from getting your mortgage loan. Since 3 Reasons Home Loans is highly experienced with mortgages and closings, we often explain the details of closing costs.

The Good Faith Estimate (Also know as the GFE)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The closing costs spelled out in the Good Faith Estimate are estimated based on 3 Reasons Home Loans's experience with mortgage loans, but costs often vary by small amounts between the Good Faith Estimate (GFE) and closing. We answer buyers' questions about closing costs every day at 3 Reasons Home Loans, so please be sure to ask if you have questions.

Below is a generic list of costs for buying residential real estate. We will always provide a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
  • Costs associated with "originating" your loan
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood / Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
At 3 Reasons Home Loans, we answer questions about closing costs every day. Call us: (661) 288-2987.

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3 Reasons Home Loans

Co. NMLS#: 1267693 BRE#: 01183599 Loan Officer NMLS#: 54182

23915 Gilford Place Suite 101
Valencia, CA 91354