Closing costs are fees associated with finalizing a mortgage loan, including lender fees, third-party fees, and real estate agent fees. It's crucial for homebuyers to budget for these costs alongside the down payment and monthly payments. Common closing costs include loan origination, appraisal, title insurance, and attorney fees. Strategies to reduce these costs include negotiating seller credits and lender fees. Understanding and reviewing the Loan Estimate and Closing Disclosure is essential for accurate budgeting and planning for homeownership.
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