What is typically required from a borrower when closing on a mortgage?

When closing on a mortgage, one of the primary financial obligations of the borrower is the payment of closing costs. Closing costs encompass a variety of fees associated with the mortgage transaction, which may include lender fees, title insurance, appraisal fees, attorney fees, and other related expenses. These costs are typically due at the time of closing and can range from 2% to 5% of the loan amount, depending on the specifics of the transaction.

This requirement is part of the overall process of finalizing a mortgage and ensuring that all necessary financial commitments are settled before the borrower takes possession of the property. It is crucial for borrowers to be aware of these costs beforehand and to have the necessary funds readily available at closing to facilitate a smooth transaction.