How do Closing Costs Work?

"Closing Costs" are the fees which pay for various services involved in the sale of residential real estate. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs.

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

Loan Estimate (LE)

Soon after you submit your application, we will give you a "Loan Estimate" of your closing costs. The closing costs specified in the LE are estimated based on Mortgage Max Inc's experience with mortgage loans, but costs often vary by small amounts between delivery of the Loan Estimate (LE) and closing. We review Loan Estimates with buyers almost every day, so we will be happy 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 provide your Loan Estimate.

Standard Closing Costs

Loan-Related Costs
  • Escrow Fees
  • Various Taxes
  • Loan-related costs
  • Points — lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Interest Payment
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood / Earthquake Insurance
  • Private Mortgage Insurance (PMI)

Mortgage Max Inc can answer questions about these closing costs. Call us: 760-547-2080.