How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved when you sell or buy residential real estate. Sellers and buyers almost always negotiate the payment of these costs.

Many of the closing costs associated with buying a home are associated with getting the mortgage loan. Since Avalon Mortgage Services, Inc. has extensive experience with mortgages & closings, we can help you understand your closing costs.

Good Faith Estimates (GFEs)

Soon after you apply for a loan, we will give you the "Good Faith Estimate" of your closing costs. The closing costs enumerated in the GFE are estimated based on Avalon Mortgage Services, Inc.'s experience with mortgage loans, but costs usually change by small amounts between delivery of the GFE and closing. We handle questions about these costs every day at Avalon Mortgage Services, Inc., so don't hesitate to contact us if you have questions.

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 loan application. At Avalon Mortgage Services, Inc., 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
  • Appraisal Fee
  • Pulling Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Loan-related costs
  • Points — lower your interest rate (optional)
Property Taxes
  • Insurance
  • Recording Fees & Transfer Taxes
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

Avalon Mortgage Services, Inc. can answer questions about these closing costs. Give us a call at (708) 403-5181.

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