How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved when you sell or buy residential real estate.

As indicated below, many of the costs result from getting your mortgage. Since Avalon Mortgage Services, Inc. is highly experienced with closings and mortgages, we are closing cost experts.

Loan Estimates (LEs)

Soon after you apply for a loan, we'll give you a "Loan Estimate" of your costs. The cost estimate is based on our past experience. It's important to note that while our LEs are very accurate, we cannot always predict closing costs to the penny. We answer questions about these costs every day at Avalon Mortgage Services, Inc., so please feel free to ask if you have questions.

Below you'll find a fairly generic list of closing costs. We will always provide you with a specific list of your closing costs when we give you a Loan Estimate.

Standard Closing Costs

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

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