Super Noob Question - Closing Costs

[Gregory Butterfield]

Hi BP!

I am having trouble finding a good explanation of what constitutes closing costs. What factors effect the amount of the closing costs? Is it based on the sales price of the property or the amount of the loan? Is it included in the loan or paid out of pocket? Who receives the closing costs? Banks? The seller? My Uncle Jerry?!?

Please break it down like I'm 5 years old and help me become smarter on closing costs, I believe in you BP!