All your attention may be on the low rate you're getting on that FHA loan, but don't forget to make arrangements to cover your closing costs.

To enter a Las Vegas nightclub for an evening of fun, you'll shell out about $30 at the door. The entrance fee for purchasing a home is quite a bit more-but at least you know that you won't get kicked out before sunrise.

Paying the cover

The upfront expenses of buying a home include your down payment plus a host of closing costs that can tally up to a few thousand dollars. Fortunately, there are rules that keep these upfront expenses to a minimum for FHA borrowers. FHA's governing entity, the U.S. Department of Housing and Urban Development (HUD), specifies that you can only be charged for items that are necessary and customary to close the mortgage. Further mark-ups aren't allowed-which means that third-party costs cannot be passed along to you at higher rates than what the service providers actually charge.

Some costs will be paid when you submit your loan application, while others are paid when the transaction closes. HUD allows for the following application-related fees:

• Appraisal costs to verify the property value; these are usually about $350.
• Credit report costs to check your credit history; these should be about $50.

Getting comfortable with the details

The bulk of your upfront expenses are incurred when your loan closes. Start planning for these by requesting a Good Faith Estimate (GFE) from your lender as soon as your loan application is approved. The actual costs you incur may be different from what's shown on the GFE, but at least the statement gives you an idea of what to expect. You might see the following items:

• Origination fee. The maximum origination fee is 1 percent of your loan amount, or 2 percent of the loan amount if it's a home equity conversion loan.
• Attorney's fees, title search fees, title insurance. Attorney's fees can range from $500 to $1,500, title search fees should be around $250, and title insurance costs vary widely depending on the home's location.
• Government recording and transfer fees. These should be less than $150.
• Pest inspection and/or flood certification. Expect about $200 total for these.
• Prepaid interest. You'll pay your lender for interest accrued between the closing date and month-end.
• Upfront premium for your FHA mortgage insurance. This will be 1.5 percent of the loan amount, but you may be able to roll it into your loan.
• Escrow amounts for future taxes and insurance: You may be required to prepay for homeowner's insurance and a portion of your property taxes.

The combined total of your closing costs may seem like a steep cover charge, but remember what you're getting in return: A place you can call your own.