Are you looking for a new home in Utah? Then you’ll need to plan for closing costs. Keep in mind that closing costs vary by state, so if you are relocating to Utah, you’ll want to pay close attention as well. Closing costs are a function of the sales price, lender fees, third-party fees and state-specific taxes.
How are Closing Costs Calculated in Utah?
Closing costs for homes in Utah fall within the 2-5% range of the purchase price. This translates to a couple of thousand dollars. If you go on the internet and search “typical closing costs for buyers in Utah,” you’re likely to come across a few distinct charges.
For instance, getting your new home appraised can cost between $300 to $500. For $300 you can get it inspected, while title insurance will set you back about $1,000. Mortgage pay-off penalties will vary but a credit report will go for as little as $20, and loan fees are 0.5-1.5% of the sale price.
How do I Calculate Closing Costs?
How Much are Closing Costs on a $400,000 Home?
Let’s say the home you’re looking into is priced between $400,000 and $500,000. In that case, you’re likely to pay closing fees of between $3,689 and $5,765. That’s how much you can expect to pay after settling the taxes involved. The cost will of course depend on the mortage lender you end up going with, how big the loan is, sum of your down payment and taxes.
How Much Should you Budget for Closing Costs?
A good rule of thumb is to budget for a minimum of 5% of the value of the home. This will help to prevent any potential surprises along the way and 5% should give you enough wiggle room to handle all the expenses associated with purchasing a new home.
How To Reduce your Closing Costs
Close at the end of the month. For every single day you own the home, you’ll pay interest. So, it makes better financial sense to close the deal at the end of the month. That way, you have fewer days to pay interest on.
Find out if they can meet you halfway. Mortgage lending is a competitive industry. If you do your research, you may find that there are discounts and deductions you could take advantage of. All you have to do is talk to your preferred lender or a Daybreak homebuilder to find out what incentives are being offered.
Think about a no-closing costs mortgage. Maybe you’re not in the best place financially right now and you could do with a waiver when it comes to closing costs. The lender may budge, provided you’re willing to increase your monthly payments to offset the fact that you’re not paying closing costs. If this is something you can manage, then feel free to ask for a no-closing costs mortgage arrangement.
Seek financial assistance. While there are several options that you can explore to take the financial load off, you have to meet several eligibility requirements in order to secure the assistance. First-time homeowners, single parents and veterans are among those that qualify for such programs
Now that you’ve learned about closing costs in Utah, the fun begins. Here at Daybreak you’ve got some choosing to do. We have oodles of new homes, from charming to magnificent and right size to king size.