When you buy a home, you will pay "closing costs" in addition to
the down payment. These costs include the "points" you pay on your
mortgage loan, title and hazard insurance, the title search, legal fees, and
other charges imposed by the lender. These charges vary by state and county, but
they usually represent a considerable amount of money.
When you begin your search for a new home in town, your Realtor can give
you information about the closing costs in your area. You can use this
information as a guideline. When you apply for your loan, the lender is required
to provide you with a "good faith" estimate of the closing costs. This
figure is usually very close to the actual amount, since the sales contract will
have the price and terms of your new home spelled out. As the closing
approaches, your Realtor will give you a final figure for the check that you
will bring to closing table.