What does closing day look like and what are closing costs?

At closing you sign the final loan and ownership documents, pay your remaining funds, and receive the keys; the deed and mortgage are then recorded and the home is yours. Closing costs are the fees to finalize the deal and typically run about 2–5% of the loan amount – think lender origination fees, appraisal, title insurance, recording fees, prepaid property taxes and insurance, and your first escrow deposit. On a $400,000 loan that's roughly $8,000–$20,000 on top of your down payment. You'll get a Closing Disclosure at least three business days before closing; compare it line by line to your original Loan Estimate and question anything that jumped. Bring a government ID and arrange the funds as a wire or cashier's check, since personal checks usually aren't accepted.