Closing on a mortgage loan is not free. Here are some of the closing or settlement costs you’ll pay during the process. You should know the final cost of your closing before you get to the closing table. Bring a certified or cashier’s check – not a personal check – written in this amount to cover the closing costs. You can also arrange to have your bank wire your payment on closing day.

• Down payment: Lenders usually require that you pay a percent of your home’s final purchase price (often 3% – 20%) as your down payment. Your down payment will become the equity you have in the home. Equity is the difference between what you owe on your mortgage and how much your home is currently worth. If your home is worth GHS200,000 and you owe GHS180,000 on your mortgage – thanks to a GHS20,000 down payment – you have GHS20,000 of equity in your home.

• Escrow funds: Your lender may collect a portion of escrow funds at closing to ensure there's enough money in your account to pay tax and insurance bills as they come due. Your lender may also roll a portion of these costs into your monthly payment to fund your escrow account throughout the year.

• Third-party fees: This covers costs from third parties your lender used to process your mortgage loan. Third-party fees typically include appraisal fees, title insurance costs, and credit report fees.

• Prepaid interest: You'll pay daily interest upfront to cover the period between closing and the date your first mortgage payment is due.

• Homeowners association fees: If you're moving to a home that charges monthly HOA fees, you may be required to pay the annual fee at closing.

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