Answer: Closing costs are any fees associated with obtaining
a mortgage. These fees are paid at closing out of the loan proceeds. Lenders may charge fees for processing, origination, and other miscellaneous services. Your mortgage broker (if you used one) will also charge a fee based on the loan amount.
The title company will collect fees for conducting the title search and actual closing. Your lender may also require title insurance, which is usually paid by the borrower. Lenders are required by law to give you an estimate of closing costs prior to the closing. The best way to avoid excessive closing costs is to shop around for the best overall deal on your new mortgage.
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