Closing Costs - In addition to your down payment, there are other costs associated with closing the loan that you may be expected to bring to your closing.  Some common examples are:

• Attorney's fees
• Appraisal fees
• Underwriting fees
• Loan processing fees
• Loan recording fees
• Lender's Title Insurance (Borrower's title insurance is separate and optional)
• Rate lock fee

Pre-paid expenses - The borrower may be required to bring extra funds to closing to either reimburse the seller for certain costs paid in advance of closing or to pre-pay certain expenses the bank requires to be paid up front.   

• When a borrower is required to either reimburse the seller for out of pocket costs that are pre-paid for a period of time that will be utilized by the buyer.  For instance, the borrower will reimburse the seller at closing for property taxes paid for the remainder of the quarter that the buyer will own the property.  Another common example would be condo fees paid towards the remainder of the month in which the sale is occurring. 
• The lender may require certain expenses be paid in advance such as property taxes for the next quarter or for property insurance.

Seller concessions - As part of the purchase agreement, the seller may agree to pay for the borrower's closing costs, pre-paid expenses or to help the buyer get a lower interest rate.

Points - One point equals one percent (1%) of the loan amount.  Borrowers, or sellers in the form of seller concessions, may opt to "pay points" up front in exchange for a lower interest rate.  A borrower would more often want to do this when they know for sure they will be in the same mortgage for a pre-determined amount of time.  Your Buyer agent can help you determine the payback time or how many months it would take, given the difference in monthly payments, to pay back the points paid.

Private Mortgage Insurance (PMI) - PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.