What goes into closing costs?

Closing costs typically include a variety of fees and expenses associated with finalizing a real estate transaction. Common components are lender fees (such as origination and underwriting fees), title insurance, appraisal fees, inspection costs, and attorney fees. Additionally, there may be prorated property taxes and homeowners insurance. Buyers should budget for these costs, which generally range from 2% to 5% of the home's purchase price.