How do Closing Costs Work?

Certain standard costs are associated with closing the sale of a house. Sellers and buyers almost always share these closing costs, as specified in the sales contract.

As the list below indicates, many of the closing costs result from getting your mortgage loan. Since The Mortgage Exchange Service LLC is highly experienced with mortgages and closings, we often explain the details of closing costs.

Loan Estimates (LEs)

Buyers will receive 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 estimate your costs to the penny. We will be glad to review the "Loan Estimate," answering questions and highlighting costs that sometimes vary a little bit at closing.

Below is a general list of costs for buying residential real estate. 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
  • Loan Origination Fee
  • Points — A fee paid to lower your interest rate (optional)
  • Appraisal Fee
  • Getting YourCredit Report
Property Taxes
  • Transfer Taxes and Recording Fees
  • Insurance
Homeowners Insurance
  • Flood or Quake Insurance if applicable
  • Private Mortgage Insurance (PMI)
  • Title Insurance

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

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