Closings costs are typically paid at the time a Buyer purchases a home.
The costs are separated into two categories:
Non-recurring closing costs
Non-recurring closing costs are any items paid just once as a result of buying the property or obtaining a loan.
Pre-paids are items that recur over time (i.e. property taxes and homeowners insurance). A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within 3 days of receiving a home loan application.