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Closing is the final stage of the loan process that requires an exchange of any funds due the other party and any signatures required for recording the transaction. Closing costs are paid at the closing.
Closing costs
Closing costs are the total expenses that the buyer pays at the time a real estate transaction is completed. This stage of the transaction is called closing. Closing costs may include origination fee, points, prepaid homeowner's insurance, appraisal fee, underwriting fee, processing fee, tax service fee, recording fee, title search and insurance, flood certificate fee, credit report fee, recording fee, tax adjustments, agent commissions, and private mortgage insurance (required if your down payment is less than 20% of the home's price.) For home mortgage loans, closing costs generally range between 3 and 6% of the home's purchase price.
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