How do Closing Costs Work?

All residential real estate sales incurs certain fixed costs. Buyers and sellers almost always split these closing costs, as the real estate sales contract specifies.

As indicated below, many of the costs result from getting your mortgage. Since Reliance Mortgage Service, Inc has extensive experience with closings and mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Buyers get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. We base this closing cost estimate on our many years of past experience. Please note that while our LEs are very accurate, we cannot always predict closing costs to the penny. We review LEs with buyers almost every day, so we'd be glad to answer the you have about closing costs.

Below is a fairly general 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
  • Up-front Interest Payment
  • Escrow Account
  • Taxes
  • Costs associated with "originating" your loan
  • Points — These are costs you pay up-front to lower your interest rate (optional)
  • Appraisal Fee
  • Getting YourCredit Report
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Earthquake Insurance if applicable
  • Private Mortgage Insurance (PMI)

At Reliance Mortgage Service, Inc, we answer questions about closing costs every day. Call us at 562 320-0510.

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