Closing costs are fees and expenses you pay at the closing of your mortgage transaction. These can include land transfer taxes, legal fees, home inspection fees, and property insurance. Other critical costs for first-time home buyers can include the down payment, mortgage default insurance (if your down payment is less than 20% of the home price), and ongoing costs like property taxes, utility bills, and home maintenance costs. It’s essential to budget for these costs when planning to buy a home.