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Closing costs are the expenses that the lender accumulates from the origination of your new mortgage loan . Some of these closing costs may be related to your mortgage loan application, while other fees are related to the house itself.

You may be able to negotiate some of the fees included in your closing costs. Things like credit reports typically cost the same with every mortgage loan program. However, if you see that your preferred lender seems is offering a great deal but is over-charging on closing costs, point out the discrepancies and ask them to lower certain charges. Keep in mind, most third party fees have been previously negotiated between the mortgage loan company and the third party, and may not be able to be reduced.  

These expenses are charged to the buyer and often cost around 3 percent of the amount being borrowed. Because different states require different taxes and fees to be included, it is impossible to come up with a generalization that applies to mortgage loans nationwide.

Typical closing costs include mortgage loan application fees and credit report, title search and insurance fees, property appraisal, recording fees, transfer taxes, document stamps, points and origination fees, and more. Escrow accounts are often required for many mortgage loans for homeowners insurance, real estate taxes, and homeowners associations and require cash deposits at closing.

After your initial meeting with a California mortgage loan professional, you should receive a Good Faith Estimate (GFE) that shows all of the closing costs associated with your mortgage loan  application. This estimate is required by The Real Estate Settlement Procedures Act and must be given to you within 3 days of applying for the mortgage loan .