How do Closing Costs Work?

Certain standard costs are associated with closing the sale of a home. Buyers and sellers customarily share these closing costs, as specified in the sales contract.

Many of the costs associated with buying a house are associated with getting the mortgage loan. Since Pauline Shah has extensive experience with closings and mortgages, we are closing cost experts.

Good Faith Estimates (GFEs)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The cost estimate is based on the loan officer's past experience. It's important to note that while our GFEs are very accurate, we cannot always estimate your costs to the penny. We field buyers' questions about these costs every day at Pauline Shah, so please feel free to contact us if you have questions.

Below you'll find a general list of costs for buying residential real estate. We will provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Various Taxes
  • Loan Origination Fee
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Account
Property Taxes
  • Insurance
  • Recording Fees and Transfer Taxes
Homeowners Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance

Pauline Shah can answer questions about these closing costs. Call us: 925-895-4155.

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