When you apply for a mortgage, the lender must respond with a Good Faith Estimate of Closing Costs, which explains the costs you will likely have to pay at settlement. But the numbers on the form are estimates, and the final tally could be higher or lower.

Some of the more common charges are:

   Loan Origination Fee: usually 1% of the loan;
   Loan Discount Points: a form of accelerated interest; each point is 1% of the loan amount (who pays points is negotiable between buyer and seller);
   Appraisal Fee: the charge to have a professional appraiser certify the value of the property being purchased;
   Credit Report: the cost of getting a credit history from a credit service;
   Tax Service Fee, Document Preparation Fee: charges to set up a tax escrow account and prepare mortgage documents;
   Attorney Fees: the settlement agent's charges for processing the sale closing;
   Title Insurance: charges for insurance to guarantee the validity of the property's title for the lender; buyers can also purchase title insurance at settlement to protect their interests;
   Recording Fees, Tax Stamps: local charges to officially record the deed and mortgage, and transfer taxes;
   Survey: the charge to verify the boundaries of the property being purchased.