How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of a home. Buyers and sellers usually negotiate these closing costs.

Many of the closing costs associated with buying residential real estate are associated with getting the loan. Since Custom Lending Group is highly experienced with mortgages and closings, we are closing cost experts.

Loan Estimates (LEs)

Buyers will receive a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. We base this closing cost estimate on our many years of past experience. Please note that while our LEs are very precise, we can't always predict closing costs to the penny. We go over Loan Estimates with buyers every day, so we will be happy to answer your questions about closing costs.

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

Standard Closing Costs

Loan-Related Costs
  • Obtaining YourCredit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan Origination Fee
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood / Quake Insurance

Custom Lending Group can answer questions about these closing costs. Give us a call at (707) 252-2700.

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