The trend of Wyoming’s housing market has mirrored the boom-and-bust trend of the oil market, which has led to volatility in housing inventory. While housing prices in most markets were declining from 2007 to 2010, they were spiking in Wyoming due to the fracking boom. Since then the housing market has reflected the uncertainty of oil and gas production, moving sideways with the ebb and flow of housing inventory. Even in the face of lower oil and gas production, housing prices have been rising due to low inventory. With an average home value of $197,000 homebuyers can still afford more real estate in Wyoming, when it becomes available. The good news for homebuyers who manage to find houses on the market is they are paying among the lowest closing costs in the country.

Average Closing Costs in Wyoming

In Wyoming, the average origination fees charged by lenders total $874. The average fees charged by third parties involved in the transaction are $815, which brings the total average closing costs to $1,689. That is well below the national average of $1,847, and it is the third lowest in the nation, just above Ohio and Idaho. Hawaii, Connecticut, and New Jersey have the highest closing costs at more than $2,000 each.

On average, borrowers pay lenders $80 for document preparation, $904 for the origination fee, and $75 for tax services. Third-party charges include $489 for appraisals, $438 for closing or settlement, $21 for credit reports, $10 for flood certification, and $125 for pest inspections, $100 for postage or couriers, and $528 for surveys. These won’t necessarily add up to the total averages because some lenders may not charge for some of the costs. 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.

All of these closing costs and their fees are included in good faith estimates provided by the lenders at the time of application. Lender origination fees are generally fixed, while third-party fees can vary by as much as 10%. Just before the loan is ready to be funded, the lender provides the buyer with closing disclosure statement outlining all the fees. This should be compared with your good faith estimate to see if there are any variances. If there are, you should ask for an explanation.

What Goes Into Closing Costs

Closing costs in Wyoming vary based on the market, the lender, and the size and type of property. The following closing costs are fairly typical for most home sales in Wyoming.

Loan Origination Fee: This fee covers the lender’s processing and administrative costs for the loan. In most cases the fee is expressed as a percentage of the loan, typically around 1%. The loan origination fee is one of the bigger closing costs, and, depending on the lender, it can sometimes be negotiated. Some lenders offer loans with no origination fees, although the interest rates may be slightly higher.

Appraisal Fee: Lenders in Wyoming require property appraisals to verify the value of the properties to be sold. Appraisals are usually done by independent appraisers who are hired by the lenders. Appraisal fees vary based on the type and size of the properties.

Title Insurance Fee: For each home purchase, two title insurance policies are purchased. The buyer purchases one on the lender to protect it against loss due to title defects. The seller purchases one on the buyer to guarantee the title. Title companies also charge for title searches and examinations.

Settlement/Closing costs: This fee covers the legal costs for settling escrow. Buyers who wish to hire their own attorneys to oversee settlement pay the cost out of pocket.

Survey: For certain types of properties, lenders may require surveys of property and building lines to prevent future conflicts.

In addition to these lender and third-party closing costs, a homebuyer in Wyoming can expect to cover future payments for property taxes and private mortgage insurance, if the down payment is less than 20%. Property taxes are usually collected one year in advance in addition to two months held in an escrow account.

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