What are Closing Costs?

"Closing Costs" are the fees which cover the various services involved in the sale of residential real estate. Buyers & sellers usually negotiate to determine who will pay different portions of these costs.

As indicated below, many of the buyer's costs cover the costs of originating the loan. At Avalon Mortgage Services, Inc., we have extensive experience in mortgage lending, so we can provide you with a comprehensive report on mortgage-related costs in your "Loan Estimate".

Loan Estimates (LEs)

Very soon after you apply for a loan, we'll give you a "Loan Estimate" of your closing costs. This closing cost estimate is based on the loan officer's past experience. Please note that while our LEs are very precise, we cannot always estimate costs to the penny. We explain Loan Estimates with buyers almost every day, so we'd be glad to answer your questions about closing costs.

Below is a fairly generic list of closing costs. We will provide a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
  • Escrow Account
  • Various Taxes
  • Loan-related costs
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Earthquake Insurance

At Avalon Mortgage Services, Inc., we answer questions about closing costs every day. Call us: (708) 403-5181.

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