Fueled by a strong job market and median home values that are almost half that of neighboring California, Oregon’s population passed the 4 million mark in 2015. While Californians migrating to Oregon may find better home values, they don’t save much on closing costs. The average closing costs for home purchases in Oregon are about the same as in California. The average closing costs in Oregon amount to 3 to 5% of the home sale price and include loan origination fees, appraisal fees, tax service fees, title insurance, home inspection and survey. Closing costs vary widely from state to state, and from lender to lender. Before embarking on a home purchase, it is helpful to know what you are paying for in the closing process, and how much you can expect to pay. When comparing closing costs, you should start by learning what the average homebuyer has to pay in your state.

Average Closing Costs in Oregon

In the state of Oregon, the average origination fees charged by lenders total $1,080. The average fees charged by third parties involved in the transaction are $784, which brings the total average closing costs to $1,864. That is just above the national average of $1,847, and $14 more than the average closing costs in California.

On average, borrowers pay the lender $80 for document preparation, $1,140 for the origination fee and $76 for tax services. Third-party charges include $468 for an appraisal, $435 for closing or settlement, $21 for credit reports, $10 for flood certification, $125 for pest inspections, $100 for postage or couriers and $490 for a survey. Title insurance fees are not included in these averages because lenders have a difficult time estimating them, but they can add as much as $1,000 to the total closing costs.

The lender should provide the borrower with a good faith estimate, which lists all of the costs and fees. Lender origination fees are generally fixed, while third-party fees tend to vary, usually up to 10%. The lender should provide a closing disclosure statement within three business days before the closing of the loan. The disclosure statement will outline all the fees, which can be compared with your good faith estimate to find any variances. Request an explanation for any variance.

What Goes Into Oregon's Closing Costs?

Loan Origination Fee: The loan origination fee is often quoted in points, with one point representing 1% of the loan. Points cover the costs of processing the loan. Buyers can sometimes lower their interest rates by paying additional points. Additional points are added to closing costs as discount points.

Appraisal Fee: Lenders order an appraisal to verify that the value of the home is worth at least the sales price and is justified based on recent sales of comparable homes.

Tax Service Fee: Because mortgage loans are subordinate to property tax liens, lenders pay an independent tax service to monitor your property tax payments in order to ensure that they are current.

Closing or Settlement Fee: This fee covers the legal aspects of closing escrow, which are typically handled by the title company.

Title Insurance: Lenders require title insurance to ensure that their loan has first position with the property. Sellers buy title insurance for the buyer to ensure that they have clear title to the property upon closing.

Home Inspection: If a homebuyer wants the home inspected, it is his or her responsibility to cover the cost, which can be paid as part of closing costs, but it is not included in the good faith estimate.

Seller’s Closing Costs

In Oregon, the seller is required to pay half of the escrow fees. The seller also pays for the sales commission, pest inspection, if required, property taxes owed and a home warranty, if applicable. In addition, the seller must purchase title insurance on the buyer.

Utah (UT): Average Closing Costs

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