Closing costs are an essential aspect of the home buying process that many first-time buyers overlook. These costs can range from 2% to 5% of the purchase price and include various fees. Common closing costs include loan origination fees, title insurance, appraisal fees, and attorney fees. It’s important to review the Loan Estimate provided by your lender, which outlines these costs. Some buyers may negotiate with sellers to cover a portion of the closing costs. Planning ahead and budgeting for these expenses can prevent unexpected financial strain. Understanding what constitutes closing costs will help you be prepared for the final stages of your home purchase.