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closing_costs_couple_agentClosing on your home is a huge step in the home-buying process. It’s when you officially get the title for your new house. It’s important to keep in mind that there are several costs when closing a home sale.

On closing day, you’ll be expected to pay all of the costs and fees associated with this process. The overall amount shouldn’t come as a surprise to you though, since your lender is required to give you a Good Faith Estimate (GFE) that contains the estimated amount of the closing costs. These costs include the following:

• Lender fees: These cover the cost of processing your home loan, the points, or percentage of the loan, you owe at closing time, the appraisal of your new home, the cost of running a credit report and interest payments.

• Escrow fees: These refer to the money that’s held in a special account to cover expenses like insurance and property taxes.

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