Buying a home in Nebraska offers many benefits. Nebraska real estate has not experienced the boom-and-bust cycles so prevalent in other states, such as Florida, Arizona and Nevada. The state's largest city, Omaha, features a diversified economy, a stable housing market and perpetually low unemployment. Even during the depths of the Great Recession, the unemployment rate in Omaha never went higher than 5.7%. Nebraska's state capital, Lincoln, doubles as a vibrant college town, and is one of the only U.S. cities with a better employment situation than Omaha. Lincoln's unemployment rate has been below 5% every month since 1990.

Moreover, closing costs in Nebraska are reasonable, hovering at the low end of the average range nationally.

Average Closing Costs in Nebraska

Average closing costs in Nebraska on a $200,000 home purchase are between $1,800 and $1,850. This is the low end of the average national range, which runs from $1,800 to $2,000 for a $200,000 purchase. Because certain closing costs are fixed and others are variable, based on purchase price, buying a more expensive home results in higher closing costs. However, the closing cost increase is not proportional to the purchase price increase. In fact, buyers of the highest-priced homes usually pay the lowest percentage of purchase price in closing costs.

The region of the country surrounding Nebraska generally features low closing costs. Nebraska ranks right in the middle of its neighboring states. South Dakota, Kansas and Wyoming offer lower average closing costs, while average costs are higher in Missouri, Iowa and Colorado.

What Goes Into Closing Costs

Closing costs come from two categories: lender fees and non-lender fees. Lender fees get paid to the bank or mortgage company providing the funds to close. Cash buyers, therefore, are exempt from paying lender closing costs.

Non-lender fees accrue to various third-party entities involved in the transaction. These entities can include closing attorneys, title insurance companies, home appraisers and inspectors and credit reporting bureaus.

Lender Closing Costs

The biggest lender closing cost in Nebraska is the origination fee. This charge represents the loan officer's fee for providing his or her time and expertise. Before the late-2000s imbroglio, mortgage companies often made big money on origination fees, with many buyers being none the wiser. Some lenders charged as much as 4 or 5%, resulting in a charge of $8,000 to $10,000 on a $200,000 loan amount. As of 2016, origination fees were much more reasonable and usually equaled less than 1% of the loan amount.

Additional lender closing costs in Nebraska include a tax service fee and a document preparation fee. Neither fee should be more than $100.

Non-lender Closing Costs

A buyer in Nebraska may incur anywhere from two or three to 10 or more non-lender closing costs depending on the nature of the transaction. The following non-lender fees represent the ones that are most common, though not all of them apply to every real estate closing in Nebraska.

The appraisal fee is usually the most expensive non-lender closing cost. This fee, which averages $450, pays for a licensed appraiser to examine the property and estimate its value based on condition, location and recent nearby sales. Nearly all lenders require an appraisal as a loan approval condition.

The settlement fee, which averages $400 to $450 in Nebraska, pays for a real estate attorney or title company representative to execute the closing by ensuring the property's title is clear and transferring it from the seller to the buyer.

Many buyers in Nebraska have a property survey done, either because their lender requires it or they want it for their own protection. A property survey verifies the exact boundaries of the property lines. The fee for this service in Nebraska averages $350 or slightly higher.

Another common fee is the home inspection fee. Separate from a home appraisal, the home inspection checks for structural integrity and the presence of termites and other pests. It is worthwhile and very affordable. The cost is usually less than $150 in Nebraska.

Additional small non-lender closing costs often incurred in Nebraska include a courier fee, a credit report fee and a flood certification fee. Each of these fees should be under $100.

Nevada (NV): Average Closing Costs

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