How do Closing Costs Work?

At Straight Talk Lending, we answer questions about closing costs every day. Give us a call at 714-737-6717.

Every home sale incurs fixed costs. Buyers almost always pay these costs, as the sales contract specifies, however, depending on the contract the seller may have to split a portion of the closing costs. "Closing Costs" are the fees which cover various services involved in the sale of a house. These fees might be paid out of pocket or indirectly by increasing the loan amount or charging a higher interest rate.

As indicated below, many of the costs result from getting your loan. At Straight Talk Lending, we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on closing costs related to your mortgage in your estimate.

Getting The Loan Estimate

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

We review estimates with buyers every day, so we'd be glad to answer any questions you have about closing costs.

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


Standard Closing Costs

Loan-Related Costs
  • Interest Payment
  • Escrow Fees
  • Costs related to "originating" your loan
  • Points — These are costs you pay up-front to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Obtaining YourCredit Report
Property Taxes
  • Insurance
  • Transfer Taxes & Recording Fees
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance
In the market for a mortgage loan? We'd be thrilled to talk about your mortgage needs! Give us a call today at 714-737-6717. Want to get started? Apply Now.

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