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1290 Howard Ave #201, Burlingame, CA 94010 

650.249.6920

Joanna@SellsThePeninsula.com

Closing Costs

Listed below are some typical closing costs that you may incur as part of your transaction. When you apply for a loan, you will receive a “good-faith estimate” of closing costs and settlement charges, along with a booklet that will explain these costs.

 

Appraisal

This is a one-time fee. The appraisal is made by an independent fee appraiser.

 

Credit Report Fee

A one-time fee that covers the cost of the credit report.

 

Document Preparation Fee

There may be a separate fee that covers the preparation of the final legal documents.

 

Loan Discount

A one-time fee used to adjust the yield on the loan to what market conditions demand. It is often called “points.”

 

Loan Origination Fee

The lender’s administrative costs in processing the loan are covered by this fee.

 

PMI Premium

You might be required to pay an upfront fee for mortgage insurance, depending on the amount of your down payment. Lenders may also require monies be placed into a reserve account held by them.

 

Prepaid Interest

Depending on the time of month your loan closes, this per-diem charge may vary from a full month’s interest to that of a few days. If your loan closes at the end of the month, you may pay interest for only a day or so.

 

Taxes and Hazard Insurance

You may be required to reimburse the seller for property taxes, prorated depending on the month in which you close. You will also need to pay a year’s hazard insurance premium up front. Also, you might be required to put a certain amount for taxes and insurance into a special reserve account held by the lender.

 

Title and Escrow Fees

Generally, each party is responsible for cost or fees incurred on their behalf unless otherwise negotiated. Some common exceptions include title policy and escrow fees, city and county transfer fees, and real estate commissions. Please refer to your real estate professional for prevailing customs in the area.