How do Closing Costs Work?

"Closing Costs" are the fees that cover various services involved when you sell or buy a house. Sellers and buyers usually negotiate these costs.

Many of the closing costs associated with buying residential real estate are associated with getting the loan. Since Reliance Mortgage Service, Inc has extensive experience with closings & mortgages, we often explain the details of closing costs.

Loan Estimates (LEs)

Buyers get a "Loan Estimate" of closing costs at the time the loan application is submitted to the lender. This closing cost estimate comes out of our past experience. It's important to note that while our LEs are very precise, we cannot always predict closing costs to the penny. We will be glad to review the "Loan Estimate," answering your questions and pointing out costs that sometimes change slightly at the closing table.

We've provided a general list of closing costs below, but we'll provide you a specific list of closing costs, with amounts, very soon after you have completed your loan application. At Reliance Mortgage Service, Inc, we don't believe in surprises, so if your costs change, we'll be sure to let you know immediately.

Standard Closing Costs

Loan-Related Costs
  • Escrow Fees
  • Taxes
  • Costs related to "originating" your loan
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Costs
  • Credit Report
  • Up-front Interest Payment
Property Taxes
  • Insurance
  • Transfer Taxes and Recording Fees
Homeowners Insurance
  • Private Mortgage Insurance (PMI)
  • Title Insurance
  • Flood or Quake Insurance

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

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