What are Closing Costs and Why do I have to pay them?

What are Closing Costs and Why do I have to pay them? 

This funny 2 minute 44 second animation perfectly explaines everything you want to know and understand about Closing Cost and where they come from...

In Short

Closing costs are the fees and expense due to the lenders, public records and federal title to ensure a legal transfer of ownership from the previous owner/seller to you.  All of which will be summed up on the 'HUD-1' form in your contract. 

 Photo Courtesy: http://youtu.be/fifp2mLGoWc

If you don't want to pay closing cost:

You can Ask your Realtor about the chances of the seller paying all or most of the closing costs.

or

You can ask your lender about the possiblility of building the closing costs into your loan.