According to Bankrate, Utah ranks 23rd in terms of closing costs. You can expect to pay about $1,889 in bank origination fees; $648 in third-party fees, appraisals, and title insurance; for $2,537 in approximate closing costs.
You may see fees by the Lender like this:
Origination points (not discount) – $732
Application – $343
Doc prep – $73
Mortgage Broker, originator or lender – $1,173
Tax Service – $72
Underwriting – $200
Wire Transfer – $25
Here is a breakdown of the *average 3rd Party fees you may see at your closing:
Appraisal Fee – $416
Credit Report – $17
Flood Certification Fee – $9
Attorney, closing or settlement – $470
Employment verification – $15
Inspections (pest) – $125
Postage/Currier – $55
Survey – $950
HOWEVER, actual closing costs do vary lender to lender and program to program. When you apply for your loan, your lender will give you a truth in lending statement. This will give you a better idea of your actual closing costs. Knowing the approximate closing costs will give you a chance to line up some money for closing costs and down payment before you need it.
Here are some great ideas of where to find money for your down payment and closing costs:
The Utah Housing Corp. has a Down Payment Assistance program available to assist you with your down payment and closings cost. This is an additional 30 year fixed-rate loan with an interest rate 2% more than your interest rate on your main mortgage. Both of these loans are serviced through the Utah Housing Corporation with mortgage payments made direction to the Corporation and not the finance company who helps you secure your financing.
Down payment assistance for the first time home buyer generally accompanies qualifying for a FHA financed home. (Generally VA financing is 100%) Buyers who are eligible can receive assistance up to 6% of the FirstHome Loan, HomeAgain Loan or 4% of a Score Loan.
FirstHome Loans have the lowest interest rate. These loans are for first time homebuyers with a minimum credit score of 660.
HomeAgain Loans are for first time homebuyers and homebuyers who have previously owned a home with a minimum credit score of 660. The income and sales price limits are higher a than FirstHome loan.
Score Loans are for first time homebuyers and homebuyers who have previously owned a home with a minimum credit score of 620.
FHA loans have a lower down payment requirement than 30 year conventional loans. FHA down payments are 3.5%.
In addition to down payment, there are also closing costs charged by your lender to process your loan. These do vary 3% – 6% depending on your lender.
Only participating lenders can offer these programs and loans. Contact us today for a list of participating lenders – not all lenders participate.
*according to Bankrate