Closing costs are the expenses associated with completing a real estate purchase or refinance beyond the down payment itself. When financing through LBC Mortgage, closing costs include both lender-related fees and third-party services necessary to transfer ownership and secure the loan. These costs are disclosed in advance through official loan estimates so borrowers can review them before finalizing the transaction.
Typical closing costs include lender origination fees, appraisal fees, credit report charges, underwriting and processing fees, and title-related services such as title search, title insurance, and escrow or settlement services. Government recording fees and transfer taxes may also apply depending on the state and local jurisdiction. Borrowers often prepay certain items at closing, such as homeowners insurance, property taxes, and daily interest from the closing date to the end of the month. In purchase transactions, closing costs are usually paid at settlement alongside the down payment. In refinance transactions, you may choose to pay costs out of pocket or roll them into the new loan balance if sufficient equity exists. The total amount depends on loan size, property location, and chosen loan program. Understanding closing costs in advance allows you to plan cash requirements accurately and compare loan options based on overall cost rather than interest rate alone.