Closing costs

Fees that must be paid on (or before) the closing date by the buyer and/or seller in addition to the down payment

These fees, which average 2-5% of a loan’s amount, are paid on (or before) the closing date. Closing costs normally vary based on a combination of three factors - the lender, the property’s location and the type of mortgage you choose. It’s best to have a good idea of all the costs early on: ask your closing agent for a pre-closing HUD-1 document, which gives a detailed list of the expected closing costs.