How do Closing Costs Work?

Every home sale incurs certain fixed costs. Buyers and sellers customarily share these closing costs, as specified in the real estate sales contract.

As you'll see below, many of the buyer's costs are related to the costs of getting the mortgage loan. At Utah Funding, we are highly experienced in mortgage lending, so we can compile a comprehensive report on mortgage-related costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers will receive a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. The cost estimate is based on our past experience. Please note that while our GFEs are very precise, we can't always predict your costs to the penny. We go over Good Faith Estimates with buyers every day, so we'd be glad to answer your questions about closing costs.

Below is a general list of closing costs. We will always provide you with a specific list of your closing costs when we provide your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — lower your mortgage interest rate (optional)
  • Appraisal Costs
  • Obtaining Your Credit Report
  • Interest Payment
  • Escrow Account
  • Taxes
  • Loan Origination Fee
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)

Utah Funding can help you understand closing costs. Give us a call at (949) 486-3777.