When a mortgage loan closes, an attorney prepares a closing statement to reconcile the transaction costs among the parties to the closing. The items listed on the closing statement can be grouped into several areas: loan closing costs, prepaid items, escrow items, title, recording & transfer charges and other charges.

• purchase or refinance
• month and day of closing
• tax values
• loan type
• loan amount

Loan closing costs are one-time expenses usually paid by the borrower(s) unless otherwise agreed to in the sales contract. Not all closing costs will apply to all loans. The actual closing costs will vary by lender and the type of financing obtained.

Application fee:
Covers the up-front costs associated with loan application including the appraisal and credit report costs.

Appraisal fee:
The charge by the appraiser to prepare the appraisal report. Typically this cost is covered in the application fee.

Credit report fee:
The charge by the credit-reporting agency to prepare a credit report. Typically this cost is covered in the application fee.

Commitment fee:
The charge by the lender for underwriting and preparing the closing documents.

Final inspection fee:
The charge by the appraiser to re-inspect a property that was under construction when the original appraisal was prepared.

Flood certification fee:
The charge by a flood mapping company to determine if the property is in a flood plain.

Loan origination fee:
The charge by the lender to cover the cost of processing and closing a mortgage loan. Typically origination is expressed as a percentage of the loan amount.

Loan discount points:
The points charged by the lender to reduce the note rate of interest. Typically points are expressed as a percentage of the loan amount.

Tax service fee:
The charge by the property tax research firm to insure the timeliness of tax payment and that the correct amounts for property taxes have been paid.