Usually your closing costs are put in an escrow account and paid shortly after the close of sale.

As a rule, closing costs to buy a new home are about 2 to 4 percent of the purchase price. Closing costs are to pay for items such as inspections, recording fees, and title insurance policies.

Consult the Federal tax instructions. There are a number of items in the closing costs that can be deducted.

A person can include closing costs in a home loan. To include closing costs in a home loan certain criteria have to be met, such as the owner has to be willing to finance more than the value of the loan.

You add the closing costs to your basis.