How Much Are Closing Costs When Buying a Home?
- loan origination fee- charged by your lender, usually 0.5–1% of the loan amount
- appraisal - typically $500–$700
- title search - protects against ownership disputes, usually $1,000–$2,500
- recording fees — paid to Salt Lake County to file the deed, usually under $200
- prepaid taxes/insurance - collected upfront to fund your escrow account
- Hoa Prepaids (if applicable)
Do buyers or sellers pay closing costs in Utah?
While closing costs are technically the buyer's responsibility, current Utah market conditions often allow sellers to help offset them. In many cases, sellers contribute toward a buyer's closing costs, and builders in particular tend to offer strong incentives, sometimes covering those costs entirely, and occasionally providing additional funds to help buy down the interest rate.
Our team has seen this firsthand with some of our closigns this month. On 3720 S Franklin Rd, the seller paid $16,000 toward closing costs, and on 2159 E Hawthorne St, the seller paid $15,000.
Can closing costs be negotiated or rolled into the loan?
Yes, in a few ways. Buyers can ask the seller for a closing cost credit, which reduces cash needed at closing. Some loan programs also allow certain fees to be rolled into the loan balance rather than paid upfront, though this increases the loan amount and total interest paid over time. On a recent Saratoga Springs home transaction I worked on, we negotiated a $16,000 seller credit toward closing costs as part of the purchase agreement, this is more common than most first-time buyers expect.
FAQ
Are closing costs different for a condo vs. a single-family home in Utah? Condos often carry slightly higher closing costs due to HOA transfer fees and HOA document review fees, typically adding $200–$500 to the total.
Do first-time buyer programs cover closing costs? Some do. Utah Housing Corporation offers down payment assistance programs that can be applied toward closing costs, not just the down payment, for buyers who qualify.
When do I find out my exact closing costs? Your lender is required to provide a Loan Estimate within three days of application, and a final Closing Disclosure at least three days before closing, showing the exact numbers.
Ilse Amador, licensed Realtor in Utah since 2018
Top Producing Agent/ Signature Group Real Estate
License #10785599-SA00
