You have that option to have the closing costs be part of the mortgage, but you could pay the closing costs up front as part of the down payment. It will depend how much cash you have on hand at the time of purchase.
Keep in mind that if you have the closing costs as part of the mortgage, then that will increase the monthly payment.
Some banks may offer the option of increasing the interest rate in exchange for lower closing costs (or eliminated closing costs). Like mentioned before, this will increase the monthly payments.