You will be asked to pay the balance of the purchase price and closing costs with a cashier's check or certified check. Closing costs vary widely depending upon the price and location of the property, as well as some other factors, but sometimes the seller may pay some of the closing costs. Check with your real estate agent, attorney, or lender to determine the exact charges you will be required to pay. Advance deposits, which the lender will place and hold in escrow for real property taxes and insurance, are not required to be listed in the estimate according to the law. The lender collects a portion of these costs every month and then pays the insurance and taxes when due.
Closing costs can mount up to a sizeable sum, but some of the items are tax deductible.
Speak with your tax advisor about the items that are tax deductible.