Closing costs are related to the real estate world and are fees and expenses associated with completing a transaction in the same. These costs are usually paid at the time of signing the final paperwork for buying or refinancing a home. They can include fees for appraisals, inspections, title insurance, and processing. Closing costs, in most cases, range from 2% to 5% of the loan amount. It’s essential for buyers to understand these costs, as they represent additional expenses on top of the down payment. So, you better look out for it before entering into a real estate deal.