Purchasing a home comes with hidden costs that go beyond the price tag on the house. Many of those extra costs that are unavoidable are wrapped up in one term: Closing costs. So if you’re wondering, “How much are closings costs in Utah?” then we’ve got you covered. Read on to see what it covers and what it costs.
What is Covered in Closing Costs?
When it comes to buying a house there are a lot of people who need to get paid for the role they played in helping you finally move into your house. This team includes people such as your realtor, a home inspector, a home appraiser and more.
Some of the fees you may be paying in your closing costs include:
- Origination Fee
This fee is paid to the mortgage lender for the cost of processing your loan.
Lenders will generally require an official appraisal before they will lend you money.
- Title Insurance
When you close on your home you purchase title insurance. This protects you from any issues that might be uncovered with the title in the future.
- Credit Score Check
To qualify for a loan they need to check your credit score to make sure you qualify. This fee covers for that check.
- Earnest Money Deposit
Earnest money is the money you include with your offer. It shows that you are serious about your offer on the home and your desire to go through with closing. This is typically around 1%-3% of the sale price. The good news is this money is held in escrow until you do close at which point it is applied to either your down payment or other closing costs.
- Title Fees
Title fees go to your lender to cover any recording fees or courier fees and are usually just a few hundred dollars.
- Property Taxes
This can vary, you may be required to pay the pro-rated amount of property taxes that you would owe through the remainder of the year.
Other fees that need to be factored in when you’re looking at buying a home include the homeowners insurance, property taxes, utilities costs and maintenance costs.
Who Pays the Closing Costs?
It’s often the buyer who pays the closing costs though it’s not set in stone. Negotiate with the seller to see if they would be willing to pay or share the closing costs. A real estate agent comes in handy when negotiating closing costs, though remember, paying your relator is another cost you’ll be paying at closing. Because you can’t control whether or not the seller will be willing to negotiate on closing costs make sure you go into the deal prepared to pay all closing costs if necessary.
How Much Should I Expect to Pay in Closing Costs in Utah?
So, are you ready for it? Just how much are closing costs in Utah in 2023.
According to data from redfin.com, as of January 2023 Utah County home prices were up .05% compared to just one year previous. Homes were selling for a median price of $492K. Since you will pay on average 1.1% of your homes price in closing costs, that would make the total closing costs on a median home price of $492 be $5,421.
Depending on where you live in Utah your costs could be higher or lower as the market prices go for homes. Because it’s now more of a buyer’s market in Utah heading into 2023 home prices across the state are generally between $400,000 and $500,o00. These prices would reflect $3,689 – $5,765 in closing costs.
Can’t Afford Closing Costs?
Closing fees could be a deal breaker. An extra $5,000 dollars isn’t petty cash and can make an already expensive house in an expensive market out of reach.
Are closing costs just one of your house selling and buying problems? If you’re trying to sell in this highly competitive market and your house isn’t stacking up to the competition then you should consider doing yourself a favor by working with a non-traditional home buyer.
Investors like Gary with Gary Buys Houses will buy your house in any condition, no repairs or upgrades needed. He also asks for zero commissions, zero scary hidden fees and Gary pays all the closing costs. Contact Gary to get your cash offer today.