What To Expect With Closing Costs

So, what exactly are closing costs? This is one of the most common questions for both buyers and sellers. Let’s take a look at what closing costs mean for both sides!

Buyer Closing Costs

The buyers usually get the brunt of the fees included in closing costs. For the buyer, costs typically range from 2% – 5% of the purchase price.

  • What is included in the closing costs price? Typically the following are included in Minnesota: appraisal fees, credit report fees, loan origination fees, loan discount points, title insurance fees, lender insurance fees, PMI insurance, Pre-paid interest, escrow accounts, mortgage recording fees, home inspection fees and a real estate administrative fee.
  • When are they due to be paid? All closing costs are due at closing. Closing is the point in the transaction where the title is transferred from the seller to the buyer.
  • Tips and tricks. If you’re a first time home buyer, click here to find some information on local programs that help with closing costs.

Seller Closing Costs

The sellers have a much shorter list. However, they pay between 6% – 10% of the purchase price including broker commissions.

  • What is included in the closing costs price? Realtor fees/brokerage commission, state deed tax, the mortgage recording fee, the settlement fee, the abstract/Title search, the lot location report, special assessment search, and the name search.
  • When are they due to be paid? All closing costs are due at closing. Closing is the point in the transaction where the title is transferred from the seller to the buyer.
  • Tips and tricks. Title insurance is highly recommended for any home owner to obtain. This will protect your ownership of the home against any situations that may challenge it. If you’ve purchased your current home within the past ten years, you are able to request a title insurance “reissue rate” for a lower rate.


There are a lot of different costs associated with buying and selling a home. Stewart Title Company has a great calculator for both buyers and sellers! These will give you a good estimate on what you’ll need to bring to your closing. Click here for the buyers’ calculator and here for the sellers’.

The best advise anyone can give you is to make sure you have a good realtor. You’ll have a lot of questions during this process which means that you’ll need someone you trust and can rely on. Remember that realtors are the ones applying to work with you, not the other way around.

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