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Individual DRE #01477745 | Individual NMLS #244111

Costs

Closing costs, itemized

Closing costs vary depending on the loan program, property, lender, and transaction. They typically include origination, appraisal, title, escrow, recording, and prepaid taxes and insurance. Seller credits can offset some of them.

6 min read · Updated August 3, 2026 · By Patti McCormick, Individual DRE #01477745 | Individual NMLS #244111

Lender costs

Origination or underwriting fees, credit report, and any discount points you choose to pay. These are the costs you can shop and compare directly between lenders on the Loan Estimate.

Third-party costs

Appraisal, title insurance (lender's policy and usually an owner's policy), escrow or settlement fees, notary, and county recording fees. In California, who pays for what is partly customary by county and partly negotiable in the purchase contract.

Prepaids and impounds

These are not fees — they are your own money moved forward. Prepaid interest for the remainder of the closing month, the first year of homeowners insurance, and several months of property taxes and insurance deposited into your impound account.

Prepaids are why closing in the first week of a month usually costs less at the table than closing at the end of one.

How to reduce what you bring

Seller credits negotiated into the offer, lender credits in exchange for a slightly higher rate, and down payment assistance programs can each cut the cash you need. In a balanced market, asking for a credit toward closing costs is often more achievable than asking for a price reduction.

Questions people ask

Can closing costs be rolled into the loan?+

On a purchase, not directly — but a lender credit or seller credit can cover them. On a refinance, they can usually be added to the new loan balance.

When will I know the exact amount?+

You get a Loan Estimate within three business days of applying and a Closing Disclosure at least three business days before signing, with final numbers.

Let's talk about your next move.

Every situation is different. Tell me what you're planning and I'll map out the numbers, the timing, and the options — with no pressure.

First Choice Mortgage & Real Estate, DBA of First Choice Mortgage Inc. Corporate DRE #01494531 | Company NMLS #245058.

Patti McCormick — licensed as Patricia Luise McCormick. Individual DRE #01477745 | Individual NMLS #244111.

Main office of record, as listed with the California Department of Real Estate (individual license #01477745): 9431 Haven Ave, Ste 523, Rancho Cucamonga, CA 91730.