Average Closing Costs in Missouri

For a $200,000 home loan with a 20% down payment, Missouri homebuyers pay an average of $1,040 for lender fees and $792 on third-party fees, for total closing costs of $1,832. This is slightly below the national average of $1,847. As a comparison, Hawaii has the highest closing costs at $2,163 and Ohio has the lowest at $1,613.

Lender practices vary widely in the way they charge for closing costs. However, for the most common closing costs, Missouri homebuyers pay an average of $1,088 for origination fees, $638 for a lot survey, $508 for legal fees, $417 for an appraisal, $125 for inspections, $100 for courier services, $76 for tax services and $21 for a credit report. Title insurance costs are calculated individually for each home sale and can add up to $1,000 to total costs. Prepaid items such as property taxes and homeowners' insurance can also increase out-of-pocket costs at closing. 

Since 2012, everything about the housing market in Missouri has been mediocre. The state does not have the most expensive housing prices, but they are also not the lowest. As of 2016, the pace of growth over the last four years has been in line with the national average. In terms of employment and per capita income, the economy is performing slightly better for Missouri than it is for the country as a whole, which has contributed to a steady increase in housing sales and housing prices. Missouri's two largest cities, Kansas City and St Louis, have been cited as two of the hottest real estate markets for 2016, yet housing remains affordable in both metropolitan areas. This is bound to attract the coming wave of millennial homebuyers, which should sustain the housing market for several years to come. When it comes to closing costs on home purchases, Missouri is also middle-of-the-road, with costs right around the nation's average. Closing costs can vary based on the lender and the loan product so prospective homebuyers should have a good idea of what they can expect to pay before searching for a loan.

What Goes Into Closing Costs in Missouri

Although closing costs can vary from lender to lender, Missouri homeowners can expect to find the following, more common closing costs on the good faith estimate provided by the lender.

A loan origination fee is charged by lenders to perform a number of functions in processing a loan, which include underwriting, document preparation and funding. The fee, which typically amounts to around 1% of the loan value, is charged as origination points, with one point the equivalent of 1% of the loan value. Points can be added to the closing costs as a way to lower the loan interest rate. Lenders in a buyer’s market try to be competitive with their fees, so negotiation is a possibility.

A home appraisal is always required, so lenders can verify that the property value is reasonable in relation to the sale price and in comparison with similar properties in the surrounding area.

Settlement fees cover the cost of settlement and document review by an attorney hired by the lender. Homebuyers can hire their own attorney to review the settlement papers, but it is an added cost to be paid at closing.

Lot surveys are not required on all properties, but lenders may require one to be conducted on some properties to verify the property lines and compliance with state and local codes.

A title company is hired to perform a title search to verify the seller as the legal owner and uncover possible liens or encumbrances on the property. Buyers must then purchase a title insurance policy on the lender to protect it against any title defects discovered later on that might threaten its position as first lien holder.

North Dakota (ND): Average Closing Costs

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