HOME'S COST IS ONLY PART OF THE TAB

When you've finally saved enough money for a down payment on a house, it's discouraging to find that you'll need thousands of dollars more for closing costs.

If technology pays off the way the mortgage lending industry anticipates, the mortgage application process will be streamlined and costs will fall in future years. But at present, you still pay heavily to close a housing deal.The following list, based on a list compiled by GMAC Mortgage, shows what you can expect to pay as a buyer:

- Appraisal. This is one of the first costs you encounter. The mortgage lender wants a professional opinion on what the property you're buying is worth. The appraiser looks over the property and provides a dollar amount. Appraisals cost the buyer several hundred dollars.

- Credit report. The lender looks at the buyer's credit record, as recorded by one or more of the three big credit reporting agencies. The buyer pays the cost, generally anywhere from $25 to $75.

- Discount points and origination fees. Points and origination fees are a form of interest charged by the lender. You can get a loan with no points, but you'll pay a higher interest rate. Each point equals 1 percent of the mortgage amount; on a $120,000 mortgage, each point is $1,200.

- Down payment. Most lenders require a down payment of at least 5 percent or 10 percent of the price you are paying to buy a house. Sometimes you can find mortgages with no down payments, but the interest rates are substantially higher.

- Escrow payments. The lender collects money from you at closing to pay the taxes and homeowner's insurance on your house. If you would rather pay these costs yourself, some lenders will waive the requirement for an escrow account. At least two months of tax and insurance payments generally are collected at closing for the escrow account.

- Homeowner's association fees. You may have monthly fees if you buy into a condominium or housing development. You may pay some of the fee at closing.

- Homeowner's warranty program. You generally can get a warranty that covers workmanship and materials in a house and warrants against major structural defects. This is an optional cost.

- Interest adjustment. At closing you pay some of the interest on your new loan up front, generally enough to cover 30 days before the first mortgage payment is due.

- Mortgage insurance. If your down payment is less than 20 percent, you have to buy mortgage insurance for the lender. This insurance benefits the lender, not the buyer. Most of this cost can be added to the monthly mortgage.

- Recording fees. Charged by the county recorder's office in many places. Varies by location.

- Tax service. A fee many lenders stick on to get more money from you. Some consider this a bogus fee; FHA and VA do not allow the fee.

- Title insurance. The borrower must buy title insurance on his house for the lender so that if something is wrong with the title, the lender has recourse. Sellers sometimes help with this cost. Buyers have the option of buying title insurance for themselves as well. Each policy costs several hundred dollars.

Before you sign up for a mortgage, ask the lender for an estimate of your closing costs. Ask a knowledgeable real estate agent or real estate attorney to look over the list. Then, at closing, make sure the lender doesn't stick on a lot of extra fees.

Good real estate agents know which lenders close loans on time, offer good service and fair closing costs. You can save money and frustration by being a wise mortgage consumer.