Closing costs generally range from 2% to 3% of your loan amount.

Closing costs can be divided into three main categories:

• Lender fees. Fees can include origination, discount points, application, credit report, appraisal, processing and underwriting fees.
• Third-party fees. These fees vary by state and the company you select to close your loan. They can include fees for closing, title exam, title insurance and recording.
• Pre-paid items. These are items collected at the time of closing but are not really considered costs (for example, interest, taxes, and hazard insurance).

You'll be provided with an estimate of your closing costs soon after your application has been received. These estimates will change if you change the product type or loan amount. If this should occur, be sure to ask how the changes will affect your closing costs.