When you buy your home you may hear your realtor and your mortgage lender both refer to closing costs, and you may be wondering exactly what these costs are and what they have to do with home loans. It is important to learn about closing costs ahead of time so you are not shocked when you are expected to come to the "closing" of the loan with funds in hand. Luckily, lenders will give you a Good Faith Estimate with the closing costs ahead of time so you will know about what they will be.