How do Closing Costs Work?

Certain standard costs are associated with closing the sale of a home. Sellers and buyers customarily split these costs, as specified in the real estate sales contract.

As you'll see below, many of the closing costs result from getting your mortgage loan. At Avalon Mortgage Services, Inc., we are highly experienced in mortgage lending, so we can provide you with a comprehensive report on costs related to your mortgage in your "Loan Estimate".

Loan Estimates (LEs)

Very shortly after you apply for a loan, we will give you a "Loan Estimate" of your costs. This cost estimate is based on our past experience. It's important to note that while our LEs are very precise, we cannot always estimate your closing costs to the penny. We handle buyers' questions about closing 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'll give you a specific list of closing costs, with amounts, very soon after you have completed your 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
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
  • Escrow Fees
  • Various Taxes
  • Costs associated with "originating" your loan
Property Taxes
  • Transfer Taxes & Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance
  • Private Mortgage Insurance (PMI)

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

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