About two days before the actual closing, you will receive a final HUD Settlement Statement from your lender that lists all the charges you can expect to pay at closing. Review it carefully with your lawyer. It will include things like the cost of title insurance that protects you and the lender from any claims someone may make regarding ownership of your property. Title insurance can cost 2 percent of the home's price. The lender might also require you to establish an escrow account, which it can tap if you fall behind on your mortgage or property tax payments.
Lenders can require deposits of up to two months' worth of payments.
It's a ritual affair, with customs that differ by region. Your lawyer or real estate agent can brief you on the particulars. In essence, once you pay all the settlement charges you then sign a bond or note that commits you to repaying your loan. Next you sign the mortgage. The lender then writes you a check for the amount of the loan.