How do Closing Costs Work?

"Closing Costs" are the fees which pay for various services involved in the sale of a house. Buyers & sellers negotiate to determine who will pay different portions of these closing costs.

As the list below indicates, many of the costs result from getting your mortgage loan. Since RTC Mortgage Corporation has extensive experience with closings and mortgages, we are closing cost experts.

Good Faith Estimate (Also know as the GFE)

Very shortly after you submit your application, we will provide you with the "Good Faith Estimate" of your costs. This closing cost estimate comes out of the loan officer's past experience. It's important to note that while our GFEs are very accurate, we cannot always estimate closing costs to the penny. We will be glad to review the "Good Faith Estimate," answering questions and pointing out costs that sometimes change slightly at closing.

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

Standard Closing Costs

Loan-Related Costs
  • Points — lower your interest rate (optional)
  • Appraisal Fee
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Taxes
  • Loan-related costs
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood / Quake Insurance if applicable

RTC Mortgage Corporation can answer questions about these closing costs. Give us a call: (949) 494-4701.

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