How do Closing Costs Work?

There are certain standard costs associated with closing the sale of a house. Sellers and buyers almost always split these costs, as specified in the real estate sales contract.

As you'll see below, many of the buyer's costs cover the costs of originating the loan. Since Baywide Funding Corporation is highly experienced with closings & mortgages, we can help you understand your closing costs.

The Good Faith Estimate (Also know as the GFE)

Buyers will get a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The closing costs enumerated in the GFE are estimated based on our experience with mortgage loans, but costs often change a little bit between delivery of the GFE and closing. We go over GFEs with buyers every day, so we'd be glad to answer your questions about closing costs.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, soon after you have completed your application. At Baywide Funding Corporation, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Escrow Account
  • Various Taxes
  • Costs associated with "originating" your loan
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Fee
  • Obtaining Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)

At Baywide Funding Corporation, we answer questions about closing costs every day. Give us a call at 650 428 0234.