How do Closing Costs Work?

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"Closing Costs" are the fees which cover various services involved in the sale of a home. Sellers and buyers often negotiate to determine who will pay different portions of these costs.

Many of the closing costs associated with buying residential real estate are associated with getting a loan. At Pacific Capital Mortgage Corp, we have extensive experience in mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Very soon after you apply for a loan, we'll give you a "Good Faith Estimate" of your costs. The cost estimate comes out of the loan officer's past experience. Please note that while our GFEs are very precise, we cannot always estimate your costs to the penny. We answer buyers' questions about closing costs every day at Pacific Capital Mortgage Corp, so don't hesitate to contact us if you have questions.

Below is a generic list of costs for buying a home. We will provide a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Costs
  • Pulling Your Credit Report
  • Up-front Interest Payment
  • Escrow Fees
  • Various Taxes
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)
Pacific Capital Mortgage Corp can answer questions about these closing costs. Give us a call: 714-939-3863.