Do you want to know How Much Are Closing Costs in Utah? When buying a home in Utah, it’s important to consider both the price and the other costs of closing the deal. In Utah, closing costs can differ depending on many things, such as the price of the property, its location, and the mortgage lender.
In this article, we’ll go over the different parts of closing costs and give you a full breakdown of how much you can expect to pay when you close on a real estate deal in Utah.
Know the costs of closing
Closing costs are the fees and other costs of buying or selling a house. These costs are paid at the closing, the last step in buying a home, when the seller hands over the property to the buyer. To avoid surprises and ensure you have enough money for your home purchase, it’s important to know how closing costs are broken down.
Costs of closing in Utah
Most mortgage lenders need an appraisal to determine how much the property is worth on the open market. Depending on the size and complexity of the property, appraisal costs in Utah can range from $300 to $500.
Fees for starting a loan
Loan origination fees are what the lender charges you for handling your mortgage application. These fees usually add up to 1% to 2% of the loan amount. They can be different, though, depending on the lender and the terms of your loan.
The cost of title insurance
Title insurance protects buyers and lenders if there is a dispute over who owns the property or a legal claim against it. In Utah, title insurance costs can range from $500 to $1,500, depending on how much the property cost to buy.
Escrow fees pay for the services that an escrow company provides, which is a neutral third party in a transaction. Most of the time, the fees cover making documents, holding funds, and helping transfer ownership. Escrow fees in Utah can be anywhere from $300 to $800.
Fees for Recording
Recording fees are what the county charges to put a new deed or mortgage in the public records. Most of the time, these fees depend on how many pages and documents are being recorded, and they can be different in different Utah counties.
Fees for a home inspection
Even though it’s not required, a home inspection is a good idea to find any problems with the property. Depending on the size and complexity of the home, home inspection costs in Utah can range from $300 to $500.
Property tax and expenses paid ahead of time
Utah homebuyers have to pay their share of property taxes and certain costs that have already been paid, like homeowners insurance and interest. The exact amount will depend on how much the property is worth, the taxes, and other things.
Suppose the property is in a neighborhood with a homeowner’s association (HOA). In that case, you may have to pay HOA fees at closing. Those costs help keep shared amenities and common areas in good shape and manage them.
Fees for Lawyers
In some situations, it may be best to hire an attorney to review the closing documents and give legal advice during the process. Fees for lawyers depend on how complicated the deal is and how much they charge per hour.
Things that change closing costs
When you buy a home in Utah, your total closing costs will depend on several things. Knowing these things will help you get a more accurate estimate of the total costs:
Price of Property
Most of the time, closing costs are a percentage of the property’s price. So, the higher the price of the house, the more likely your closing costs will also be higher.
How much money was borrowed?
The loan amount you take out can also affect the closing costs. Lenders may charge more in origination fees or other costs for bigger loan amounts.
Different taxes, fees, and rules in different parts of Utah could make closing costs slightly different in each area.
Each lender might have its own requirements and closing costs. To find the best rates and fees, comparing loan offers from different lenders is important.
Ideas for cutting down on closing costs
Even though closing costs are an unavoidable part of buying a home, there are ways to reduce these costs:
- Look around for the best loan terms and mortgage rates.
- Try to get the seller to pay for some of the closing costs.
- Compare the prices of different service providers, like home inspectors and title companies.
- Consider a no-closing-cost mortgage, where the lender pays the closing costs in exchange for a slightly higher interest rate.
Read our blog if you want to know more pay per closing real estate leads.
In Utah, closing costs can add to the total home cost. By knowing the different parts of closing costs and their effects, you can make a better budget and avoid any unpleasant financial surprises. To lower your closing costs, don’t forget to shop around, compare offers, and think about different ways to do things. With the right knowledge and preparation, you’ll be able to get through the closing process and realize your dream of owning a home in Utah.