Interest. Usually buyers must pay this charge at the closing. You pay interest on your loan for the period of time between the closing date and the date on which the first scheduled loan payment is due.

Mortgage insurance premium. The initial premium is often paid in advance, at the request of the lender. It may cover several months or be a full year's premium.

Homeowner's insurance premium. Your lender could require a first check for this policy. After that, you are likely to cover homeowner's insurance in your monthly mortgage payment. (Chapter 19 explains homeowner's insurance in detail.)

Hazard insurance premium. If it has been determined your home is in an area calling for some type of hazard insurance (flood or earthquake protection, for example), the lender will require proof of payment of the first year's insurance premium at the closing.