Closing costs are the fees and expenses you pay when finalizing your home purchase, beyond your down payment. These typically include lender fees, title insurance, appraisal costs, attorney fees, and prepaid items like property taxes and homeowners insurance.

On average, closing costs range from 2-5% of your home's purchase price. While they can feel like an unwelcome surprise at the finish line, understanding what you're paying for helps you budget accurately and negotiate where possible. Some costs are fixed, but others (like origination fees or title services) may have flexibility.