Fees paid at the close of a real estate transaction — typically 2-5% of the loan amount.
Closing costs include lender fees (origination, underwriting, processing), third-party fees (appraisal, title insurance, recording, attorney), and prepaid items (property taxes, homeowners insurance, mortgage interest).
On a $400,000 home, expect $8,000–$20,000 in closing costs. Some can be negotiated; others are fixed by law or third parties.
Buyers can sometimes ask the seller to cover part of the closing costs as a 'seller concession,' or roll them into the loan with a slightly higher interest rate (a 'lender credit').