How do Closing Costs Work?

"Closing Costs" are the fees which cover various services involved in the sale of residential real estate. Sellers and buyers often negotiate to decide how to share these closing costs.

As indicated below, many of the buyer's closing costs cover the costs of getting the mortgage loan. At Reliance Mortgage Service, Inc, we are highly experienced in residential mortgage lending, so we can compile a comprehensive list of mortgage-related closing costs in your "Good Faith Estimate".

Good Faith Estimates (GFEs)

Buyers get a "Good Faith Estimate" of closing costs around the time the loan application is submitted to the lender. This cost estimate comes out of our past experience. It's important to note that while our GFEs are very accurate, we can't always estimate closing costs to the penny. We go over Good Faith Estimates with buyers almost every day, so we are happy to answer any questions you have about closing costs.

Below you'll find a fairly generic list of costs for buying a home. We will always provide you with a specific list of your closing costs when we deliver your Good Faith Estimate.

Standard Closing Costs

Loan-Related Costs
  • Loan-related costs
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Obtaining Your Credit Report
  • Interest Payment
  • Escrow Fees
  • Taxes
Property Taxes
  • Recording Fees and Transfer Taxes
  • Insurance
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood / Quake Insurance if applicable

Reliance Mortgage Service, Inc can answer questions about these closing costs. Give us a call: 562 320-0510.

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