How do Closing Costs Work?

"Closing Costs" are the fees which cover the various services involved in the sale of a home. Buyers & sellers often negotiate these closing costs.

Many of the costs associated with buying residential real estate are associated with getting a mortgage. At HERN CAPITAL, LLC., we are highly experienced in residential mortgage lending, so we can provide you with a comprehensive list of mortgage-related closing costs in your "Loan Estimate".

Loan Estimates (LEs)

Buyers will receive a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. We base this closing cost estimate on our extensive past experience. Please note that while our LEs are very accurate, we can't always estimate your closing costs to the penny. We review Loan Estimates with buyers every day, so we are happy to answer your questions about closing costs.

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 Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan-related costs
  • Points — lower your mortgage interest rate (optional)
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)

At HERN CAPITAL LLC, we answer questions about closing costs every day. Give us a call at (626)918-4592.

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