Closing costs are fees incurred in addition to the purchase price of a home that will be listed on the Closing Disclosure provided to the borrower before closing. Closing costs cover fees associated with the sale of the home, such as title and settlement services, title insurance, appraisal, lender fees, and other services carried out during closing. Closing costs are typically 2%–5% of the home's price. Down payment, although paid at closing, is not considered part of the closing costs.

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