Closing costs can only be rolled into the loan when refinancing a mortgage. When purchasing a home, you can either convince the seller to cover closing costs as a seller concession or if you are working with a low cost lender or broker you can look at rate options that provide lender credit to cover all or part of the closing costs. If none of the stated options work, then you will have to pay for the closing costs out of pocket. Typical closing costs like doc stamps and title charges and pre-paid items such as home insurance and property tax equate to about 3% of the purchase price.