Before you make an offer on the home of your dreams, be prepared. One in four homebuyers claim to have encountered unanticipated fees when closing, according to a recent study conducted by the Mortgage Bankers Association of America (MBA).

"Closing refers to the entire process that transfers ownership, not just a one-time meeting at the end of the sale," said Richard Douglas, regional manager for the Fayetteville area of Norwest Mortgage, Inc., the nation's leading provider of home mortgages. "It's important for homebuyers to ask plenty of questions and thoroughly review each and every document at closing. Simply understanding what the closing entails will help buyers know what to expect at closing, including the money they'll need to bring to the table."

Once a sales contract has been signed by the buyer and the seller, the main steps in closing take place. Closing generally requires a property appraisal, credit report, deed recording, title insurance and tax services. These services are usually performed by a third party and directly charged to the borrower. Closing costs vary from lender to lender and may be as much as 7 percent of the home's purchase price.

Mortgage points or an origination fee may also be things to consider. By "paying points," or a percentage of the total mortgage amount at closing, buyers can reduce the interest rate on the life of the loan. In addition, most lenders charge an origination fee generally up to 1 percent of the mortgage. Consumers should be sure to ask about the origination fee percentage.

When it come time for the closing meeting, the buyer must bring evidence of homeowner's insurance as well as a certified check for closing costs. Only the closing agent and the buyer are required to attend the closing meeting.

Douglas said buyers should receive at least four documents at the closing meeting:

·Settlement statement, which details the cash expenditures involved in the transfer of ownership;

·Truth-in-lending statement, which lists the buyer's estimated monthly payment - not including escrows for taxes and insurance - as well as the total cost of all finance charges;

·Mortgage note, which serves as legal evidence and the buyer's formal promise to repay the debt; and,

·Mortgage or deed of trust, which gives the lender a claim against the house if the buyer doesn't live up to the terms of the mortgage note.

"Buying a home is the largest investment most people make in a lifetime," Douglas said. "It's important to work with a good lender who can guide you through the process and answer questions along the way."

For more information about mortgage products and services, visit Norwest Mortgage on the Internet at www.norwest.com, or call 1-888-303-3887 for information on the branch in your area.