Generally, closing costs are fees and costs associated with obtaining the mortgage loan. You pay most of these expenses when signing the final loan documents, or when you “close” the deal. Some common closing costs include:

• Underwriting and/or processing fees
• Appraisal fees
• Pest inspection fees
• Title insurance
• Title inspection and recording fees

Your lender is required to provide you with disclosures about these and other costs after application and again at closing. You may request a statement of these closing costs the day before closing.

TIP: You can save money by shopping for providers of some of the services required by the lender or by negotiating with your lender. You can use the phone book, word of mouth, or the Internet to find service providers. You can obtain multiple estimates for these service providers to compare with estimates quoted by the lender. For example, you may be able to save a substantial amount of money by shopping for title insurance providers.