Closing Costs

Every home sale incurs fixed costs. Buyers customarily incur these closing costs, as specified in the sales contract, however, depending on the contract the seller may have to split some of the closing costs. "Closing Costs" are the fees that pay for the various services involved when you sell or buy residential real estate. These fees can be paid directly or indirectly by crediting the loan.

As you'll see below, many of the buyer's closing costs are related to the costs of getting the mortgage loan. At First American Financial, we have extensive experience in mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your estimate.

The Loan Estimate

Within three days after you submit your application, we'll provide you with a Loan Estimate. The Loan Estimate provides you with information like closing costs, taxes, insurance, estimated interest rate monthly payment and more. This estimate is not an approval, but it's the first step toward obtaining your loan.

We will be glad to review the estimate, answering questions and highlighting costs that sometimes change slightly at the closing table.

Below is a generic list of costs for buying residential real estate. We will provide a specific list of your closing costs when we provide your estimate.

Standard Closing Costs

• Costs related to "originating" your loan
• Points — lower your mortgage interest rate (optional)
• Appraisal Fee
• Obtaining Your Credit Report
• Interest Payment
• Escrow Fees

• Transfer Taxes and Recording Fees
• Insurance

• Title Insurance
• Flood or Earthquake Insurance
• Private Mortgage Insurance (PMI)