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Closing costs are the fees and prepaid expenses due when you finalize your loan. They are separate from your down payment, so it pays to plan for both.
What closing costs include
- Lender and title fees
- Appraisal and inspection fees
- Prepaid property taxes and homeowners insurance
Ways to prepare
Ask for a Loan Estimate early. It lists your expected closing costs, so there are no surprises on closing day.
