How do Closing Costs Work?

Certain standard costs are related to closing the sale of a home. Sellers and buyers almost always split these closing costs, as the sales contract specifies.

As you'll see below, many of the buyer's closing costs are related to the costs of originating the mortgage loan. Since Riviera Funding is highly experienced with closings and mortgages, we often explain the details of closing costs.

The Good Faith Estimate (Also know as the GFE)

Soon after you apply for a loan, we'll provide you with a "Good Faith Estimate" of your costs. This closing cost estimate is based on our past experience. It's important to note that while our GFEs are very precise, we can't always estimate your closing costs to the penny. We go over GFEs with buyers almost every day, so we are happy to answer your questions about closing costs.

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

Standard Closing Costs

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

Riviera Funding can help you understand closing costs. Call us at (310) 373-7406.

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