The Real Estate Settlement Procedures Act or RESPA requires the lender or mortgage broker to give you a good-faith estimate of the settlement charges you will be expected to pay when you buy a home. These closing costs can easily add thousands of dollars to your home purchase.

As a buyer, you might encounter fees for title insurance, loan origination (often called "points"), home appraisal, credit report, escrow services, interest accrued from the date of settlement, property taxes paid by the previous owner, homeowners insurance and mortgage insurance. For a full list of potential charges, see http://www.hud.gov/offices/hsg/sfh/res/sc3secta.cfm.

One business day before settlement, you should receive an HUD-1 statement that shows a final list of closing costs. Compare this to your good-faith estimate. If there are differences, ask your lender, real estate or escrow agent to explain them.

In some states, lenders, title companies and escrow agents invent or pad fees. For example, you might be charged $65 for a messenger that cost $25 or never delivered a package at all. In some states, these markups are not allowed.

You should challenge these so-called junk or garbage fees. Ask the escrow or loan officer to see a receipt for charges that could be fudged, such as messengers, wire transfers, overnight mail and recording fees.

For more information on RESPA and the settlement process, see

http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.

For a good article on junk fees, see http://abcnews.go.com/GMA/Business/story?id=1704406&page=2.