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Buying a home can cause sticker shock when you consider that hundreds of thousands of dollars are on the line. Before you close the deal, you’ll need to prepare yourself for another financial shocker: closing costs.

You’ll have to pay closing costs whether you’re buying a house or getting a mortgage refinance. It may be a bit overwhelming when you get your first look at the various costs you’ll have to pay to close your loan.

But don’t stress. We’ve broken down what you’ll have to pay — property taxes, mortgage insurance, title search fees and more. Closing costs will make more sense once you understand what they cover, and how they protect the biggest investment you’ll likely make in your lifetime.

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The total you’ll pay can vary greatly according to your home’s purchase price. According to Zillow, the average homebuyer will pay between about 2% and 5% of the sale price in closing fees.

Here’s a closer look at the closing costs you’ll face.

Property-related fees

Appraisal fee: It’s important to a lender to know if the property is worth as much as the amount being borrowed. This is for two reasons: The bank needs to verify that the amount you need for a loan is justified, and the bank also wants to make sure it can recoup the value of the home if you default on your loan. The average cost of a home appraisal by a certified professional appraiser ranges between $300 and $400.

Home inspection: Most lenders require a home inspection, especially if you’re getting a government-insured mortgage. Before lending you hundreds of thousands of dollars, a bank needs to make sure the home is structurally sound and in good enough shape to live in. If the inspection turns up troubling results, you may be able to negotiate a lower sale price. But depending on how severe the problems are, you have the option to back out of your contract if you and the seller can’t come to an agreement on how to fix the issues. Home inspection fees, on average, range from $300 to $500.

Loan-related fees

Application fee: This covers the cost of processing your request for a new loan and includes costs such as credit checks and administrative expenses. The application fee varies depending on the lender and the amount of work it takes to process your loan application.

Assumption fee: If you take over (“assume”) the remaining balance of the seller’s mortgage, you may be charged a variable fee based on the balance.