How do Closing Costs Work?

"Closing Costs" are the fees that pay for various services involved when you sell or buy residential real estate. Sellers and buyers almost always negotiate the payment of these closing costs.

As you'll see below, many of the costs result from getting your loan. Since The Mortgage Exchange Service LLC has extensive experience with mortgages and closings, we often explain the details of closing costs.

Good Faith Estimates (GFEs)

Soon after you submit your application, we will provide you with a "Good Faith Estimate" of your closing costs. The cost estimate comes out of our past experience. It's important to note that while our GFEs are very precise, we can't always estimate costs to the penny. We handle buyers' questions about closing costs every day at The Mortgage Exchange Service LLC, so don't hesitate to contact us if we can help answer your questions.

We've provided a general list of these costs below, but we will give you a specific list of closing costs, with amounts, soon after you have completed your loan application. At The Mortgage Exchange Service LLC, 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 Account
  • Taxes
  • Loan-related costs
  • Points — A fee paid to lower your mortgage interest rate (optional)
  • Appraisal Fee
  • Pulling Your Credit Report
  • Up-front Interest Payment
Property Taxes
  • Recording Fees & Transfer Taxes
  • Insurance
Homeowners Insurance
  • Title Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)

The Mortgage Exchange Service LLC can answer questions about these closing costs. Call us at 703.255-5810.

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