Average Closing Costs in Ohio

In the state of Ohio, the average origination fees charged by lenders total $933. The average fees charged by third-parties involved in the transaction are $680, bringing the total average closing costs to $1,613, which is the lowest in the nation, just below Idaho, Wyoming and Utah. The national average is $1,847. Hawaii, Connecticut and New Jersey have the highest closing costs at more than $2,000 each.

On average, homebuyers pay the lender $80 for document preparation, $967 for the origination fee and $76 for tax services. Third party charges include $421 for an appraisal, $403 for closing or settlement, $21 for credit reports, $10 for flood certification, $125 for pest inspections, $100 for postage or couriers, and $178 for surveys. Title insurance fees are not included in these averages because lenders have difficulty in estimating them, but they can add as much as $1,000 to the total closing costs.

When the loan application is accepted, borrowers are provided with a good faith estimate by the lender, which itemizes the costs and the fees charged. Lender origination fees are generally fixed, while third-party fees may vary by as much as 10%. Within three business days before the closing of the loan, the lender should provide a closing disclosure statement listing all the fees. This can be compared with your good faith estimate to see if there are any variances. If there are, you should ask for an explanation for the variance.

Ohio Housing Market

In 2015, the state of Ohio experienced the strongest home sales activity since the housing bubble in 2007. An improving economy led by more than a year of steady job growth has boosted the confidence of homebuyers who are finding that home values are still below their 2007 levels. Ohio homebuyers are also benefiting from the lowest closing costs in the nation.

Homebuyers can still expect to pay between 3 and 5% of the home sale price for their closing costs, which can vary depending on the lender, the market and the type of property they purchase. It is always best to compare closing costs when shopping for a lender. As a basis for comparison, it helps to know what the average homebuyer pays for various closing costs in Ohio.

What Goes Into Closing Costs?

Closing costs in Ohio can vary from lender to lender and from market to market. However, the following closing costs are fairly typical for most home sales in Ohio.

Loan origination or lender fees: This fee covers the lender’s costs for processing the loan, including origination, underwriting, document preparation, processing, funding and administration. This is one of the largest closing costs and one of the few that can be negotiated.

Appraisal fee: Every lender requires a property appraisal to ensure the property value is at least as much as the sale price and that it is comparable to other homes in the area.

Settlement/Closing fee: The state of Ohio does not require legal representation at the time of closing. All of the legal aspects of the settlement are handled by the title company.

Title Insurance: The buyer is required to pay for the cost of title insurance on the lender in the amount of the loan. This protects the lender against any problems found in the public records or the possibility of title fraud.

Survey: A survey must be conducted to ensure the integrity of the property lines. This is done to avoid any property line issues that might arise.

Home inspection: The buyer typically pays the cost of a pest inspection, and, if they request one, the cost of a home inspection.

Seller Closing Costs

The seller is responsible for paying the sales commission and covering the cost of title insurance on the buyer. Additional closing costs include property transfer tax, property taxes owed, title search, a home warranty, if applicable, and escrow fees. The seller can expect to pay approximately 1% of the sale price in closing costs.

Wisconsin (WI): Average Closing Costs

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