Closing costs refer to the various fees and expenses associated with finalizing a real estate transaction. These costs can include lender fees, appraisal fees, title search and insurance fees, government recording fees, and other miscellaneous expenses.

The total amount of closing costs can vary depending on a variety of factors, including the price of the home, the location of the property, and the type of loan you are obtaining. As a general rule, closing costs can range from 2% to 5% of the purchase price of the home.

While closing costs can certainly add up, they are an important part of the home-buying process, as they help ensure that the transaction is completed smoothly and legally. It is important to carefully review all of the closing costs associated with your home purchase and to factor them into your overall budget and financial planning.