If you’ve ever gone through the mortgage process, you know about closing costs. Most likely you were given a list of costs associated with the mortgage and told to either bring the money to closing or roll the costs into your mortgage.

But, if this is your first mortgage, you’re still getting used to the concept of paying more money, beyond your down payment. Usually, closing costs are paid by the person purchasing the home, but with some mortgages (VA for example) the seller can pay closing costs. A little-known fact is that a big part of costs and fees actually go to third parties who process the mortgage, as well as local governments as taxes. The money doesn’t go to the mortgage company.
Most people take closing costs and fees for granted and just pay what they are told. They don’t question the mortgage or title company about the costs associated with a mortgage closing. That’s too bad, because they should.
As an informed mortgage customer, you should make your mortgage banker walk you through each cost, and explain in detail what you are paying. The bottom line is that you don’t want to be surprised at the last moment. Imagine getting a call from your mortgage banker the day of your closing with a message that your closing costs are $1,200 more than you thought. And the only explanation is that the title company made a mistake. Chances are you may have to reschedule your closing to get the money together for the difference, or have your mortgage adjusted to have the amount rolled in.
To avoid a situation like this, it’s a good idea to know exactly what the costs and fees are, how they are calculated, and why you (or the seller) have to pay them. Here’s a breakdown of the most common closing costs and fees with a rough estimate of average cost:

  • Appraisal (up to $450) – This is paid to the appraisal company to confirm the fair market value of the home.
  • Credit Report (up to $30) – A Tri-merge credit report is pulled to get your credit history and score.  You cannot supply your consumer pulled report and the scores pulled form the internet from any place other than myfico.com are not real scores nor are they accurate.
  • Closing Fee or Escrow Fee (generally calculated a $2.00 per thousand of purchase price plus $250) – This is paid to the title company, escrow company or attorney for conducting the closing. The title company or escrow oversees the closing as an independent party in your home purchase. Some states require a real estate attorney be present at every closing
  • Title Company Title Search or Exam Fee (varies greatly) – This fee is paid to the title company for doing a thorough search of the property’s records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.
  • Survey Fee (up to $400) – This fee goes to a survey company to verify all property lines and things like shared fences on the property.  This is not required in all states


6263 N Scottsdale Rd #190
Scottsdale, AZ 85250
Phone: (480) 385-6500
Fax: (480) 385-6800

16155 N 83rd Ave #105
Peoria, AZ 85382
(623) 385-1000
Fax: (623) 385-1021

21300 N John Wayne Pkwy #102
Maricopa, AZ 85139
Phone: (520) 518-5222
Fax: (480) 385-6906

1616 N Litchfield Rd #110
Goodyear, AZ 85395
Phone: (623) 385-1050
Fax: (623) 385-1039

2577 W Queen Creek Rd #105
Chandler, AZ 85248
Phone: (480) 385-6400
Fax: (480) 385-6804

1952 E Pecos Rd #103
Gilbert, AZ 85295
Phone: (480) 385-6524
Fax: (480) 385-6432

1757 E Baseline Rd #101
Gilbert, AZ 85233
Phone: (480) 830-0883
Fax: (480) 385-6854

23200 N Pima Rd #101
Scottsdale, AZ 85255
Phone: (480) 385-6530
Fax: (480) 385-6933

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