Closing costs
Names and abbreviations on this page
CFPB — Consumer Financial Protection Bureau. United States regulator for consumer financial products.
Housing terms & practical skills
What it means
Closing costs are charges associated with completing a property purchase and its financing. They can include lender and settlement charges, among other items. Cash to close is a broader settlement figure that also reflects the down payment, deposits, credits and adjustments.
Related skills
Read disclosuresCompare the Loan Estimate with the Closing Disclosure.
Separate categoriesDistinguish fees, prepaid expenses and escrow funding.
Confirm fundsCheck the final amount and payment instructions through a verified contact.
An everyday example
A simplified plan with a $20,000 down payment and $6,000 of closing costs starts at $26,000 before accounting for deposits, credits and other adjustments. Use the actual settlement documents for the final figure.
What to check
Do not transfer funds based only on an unexpected email. Independently verify changed wiring instructions with a trusted contact.