You have a lot to keep up with when it comes to buying a residential property in North Carolina, especially when buying for the first time. When you near the finish line and practically have the keys of your home in your hand, know that you cannot relax in the financial planning aspect of becoming a homeowner.

U.S. News & World Report breaks down closing costs involved in purchasing a home. Familiarize yourself with them to avoid unfortunate financial surprises that can detail your home-buying budget.

Title fees

Title fees make up a large percentage of closing costs. Such fees include settlement services, title search and title insurance. You may also want to look into owner’s title insurance, which is optional. Consider shopping around for title services to get the most favorable price.

Lender fees

Depending on your lender, you could have a string of fees broken down into appraisal costs, courier fees, processing fees, administrative fees and more. On the other hand, your lender may bundle all fees into the origination fee. You may also have the option of buying discount points, which can reduce your overall interest rate.

Prepaid fees

Expect your mortgage lender to have you set up an impound or escrow account for your property taxes and homeowner’s insurance. If you gathered a down payment of more than 20%, you may not have to set up such an account. Besides the amount of your down payment, the current cost of state property tax determines the overall price of your prepaid fees.

Talk with your real estate agent and lender about how much you can expect to spend on closing costs. Make every effort to lower your fees and prepare your finances so that you can experience the satisfaction of becoming a homeowner.