Buying in Salt Lake City and wondering how much cash you’ll need beyond the down payment? You’re not alone. Closing costs can feel like a mystery until you see the numbers on paper. In this guide, you’ll get a clear, Utah‑focused breakdown of typical buyer fees, what’s negotiable, when you’ll see final figures, and simple steps to estimate your cash to close with confidence. Let’s dive in.
Closing costs: what they include
Closing costs are the one‑time expenses due at settlement that are separate from your down payment. In Utah, buyers typically pay lender fees, appraisal, inspections, title and escrow fees, recording charges, and prepaid items like property taxes and homeowners insurance. Sellers usually cover real estate commissions and may pay some title or settlement fees depending on custom and negotiation.
As a rule of thumb, buyer closing costs in Salt Lake City often land around 2% to 5% of the purchase price, not including your down payment. The exact number varies with your loan program, rate choice, insurance, and whether you receive any credits.
When you see final numbers
You will receive two key documents from your lender under federal rules that apply in Utah:
- Loan Estimate: Within three business days after your completed loan application, your lender must send a Loan Estimate showing projected closing costs and cash to close.
- Closing Disclosure: At least three business days before you sign, your lender must deliver a Closing Disclosure with the final numbers. If the loan or terms change, the figures can change too.
These are your authoritative sources for the dollar amounts. Your title company can also provide fee estimates early in the process.
Typical buyer costs in SLC
Here are common buyer‑side line items and typical ranges. Your numbers will vary by lender, property type, and title company.
Loan‑related fees
- Origination/processing: About 0.5% to 1.0% of the loan amount or a flat fee, negotiable with the lender.
- Underwriting, application, credit report: About $50 to $700 combined.
- Discount points: Optional. Each point equals 1% of the loan amount and can lower your rate. Points can be buyer‑paid or covered by the seller as a concession, subject to loan rules.
Appraisal
- Standard appraisal: Roughly $400 to $1,000 depending on property size and complexity. Usually buyer‑paid and ordered by the lender.
Inspections
- General home inspection: Commonly $300 to $700 for a single‑family home.
- Specialized inspections: Pest, radon, sewer scope, roof, or HVAC typically add $100 to $500 each. Your offer can make inspections a contract condition.
Title and escrow
- Lender’s title insurance: Required by most lenders; premium is based on the loan amount and the title company’s rate schedule.
- Owner’s title insurance: Protects your equity. Who pays varies in Salt Lake City and is negotiable. Premium is based on the purchase price.
- Escrow/settlement fee: Often $300 to $800. This may be split or assigned to one party based on local practice and negotiation.
Recording and local fees
- County recording charges: Typically modest, from a few dozen to a few hundred dollars. Utah does not have a state real estate transfer tax, but you should expect Salt Lake County recording fees.
Prepaids and escrow deposits
- Property taxes and homeowners insurance: Expect to prepay some months and fund an initial escrow deposit, often 2 to 3 months for taxes and insurance. Exact amounts depend on billing cycles and lender requirements.
- Prepaid interest: Covers the interest from closing to the start of your first payment and depends on your closing date.
Mortgage insurance
- Conventional loans with under 20% down usually require PMI, priced by credit score and down payment. Many policies are paid monthly; some allow an upfront option.
- FHA loans have an upfront mortgage insurance premium and an annual premium paid monthly. Rules are set by the program.
HOA‑related fees
- HOA transfer/estoppel: Often $100 to $400 for condos or PUDs.
- Initial or prorated dues: You may owe a partial month or first month’s dues at closing.
Other small items
- Wire fees, courier, flood certification, or pest inspection (for some loans): Typically $25 to $200 each.
Utah‑specific notes for SLC buyers
- Title and settlement: Closings are commonly handled by title companies. Fee splits vary by company and contract.
- No state transfer tax: Utah does not impose a statewide transfer tax. Plan for county recording fees instead.
- Property tax proration: Taxes are prorated between buyer and seller based on the closing date and the Salt Lake County tax calendar.
- HOA considerations: For condos and some planned communities, estoppel fees, potential special assessments, and dues can materially impact cash to close and ongoing costs.
Estimate your cash to close
Use this simple process to avoid surprises:
- Set your purchase price and down payment.
- Ask your lender for a sample Loan Estimate. It will include lender fees, title/recording estimates, prepaids, and escrow deposits.
- Add third‑party items you typically pay, like inspection(s), appraisal, and HOA transfer fees if applicable.
- Include initial escrow deposits for taxes and insurance. This can be several hundred to several thousand dollars depending on premiums and billing cycles.
- Subtract any seller or lender credits.
- Add a buffer of $500 to $1,500 for minor variances.
Example A: $500,000 single‑family home (illustrative)
- Down payment: 10% = $50,000
- Closing costs: 2.5% estimate = $12,500
- Prepaids and initial escrow deposits: $3,000
- Estimated cash to close: $65,500
Example B: $350,000 condo with HOA (illustrative)
- Down payment: 3.5% (FHA) = $12,250
- Closing costs and fees: $7,000
- HOA estoppel and initial dues: $400
- Estimated cash to close: ~$19,650
These examples are for illustration only. Your lender and title company will provide precise figures on the Loan Estimate and Closing Disclosure.
What is negotiable in SLC
Several costs are negotiable and can reduce your cash to close:
- Seller credits: Sellers can contribute toward your closing costs within loan‑program limits.
- Owner’s title policy: Who pays can vary by neighborhood and deal; it is negotiable.
- Escrow/settlement fee: Often split 50/50 but can be allocated differently by contract.
- Repair credits: Instead of repairs, you can request a credit at closing to offset costs.
- Rate buy‑downs: Sellers can pay points to lower your interest rate, subject to program rules.
In a buyer’s market, credits are more common. In a seller’s market, concessions may be limited. Your strategy should reflect current conditions and the specific property.
Avoid surprises and fraud
- Verify wiring instructions: Call your title company using a verified phone number before sending any funds. Do not rely on email instructions alone.
- Order early payoffs and HOA estoppels: Unpaid dues, liens, or final utility bills can change numbers at the last minute. Get documentation early.
- Clarify escrow deposits: Ask your lender to itemize initial escrow requirements for taxes and insurance so you can plan properly.
- Put concessions in writing: Make sure any credits or fee splits are included in the purchase contract.
Buyer checklist
- Get pre‑approved and request a sample Loan Estimate based on your target price and down payment.
- Ask your agent which local title companies are commonly used and request fee estimates.
- Budget for inspections, appraisal, and any HOA transfer fees.
- Decide on owner’s title insurance and confirm who will pay in your offer.
- Confirm tax cycles and any special assessments with the title company.
- Build a $500 to $1,500 buffer for small changes.
- Double‑check wiring instructions by phone with your title company.
Ready for local guidance?
You do not have to figure this out alone. If you want a clear cash‑to‑close estimate and help structuring credits, title fees, and timing, Adrian at Maco Realty can coordinate your lender, title company, and inspectors so you feel confident from offer to closing. Reach out to discuss your budget and next steps with a local plan tailored to Salt Lake City.
Visit Maco Realty to get started.
FAQs
Who usually pays owner’s title insurance in Salt Lake City?
- It varies deal by deal and is negotiable; confirm the split with your agent and title company for the specific property and neighborhood.
When will I know my exact closing costs for a Utah home?
- Your lender must provide a Closing Disclosure with final figures at least three business days before closing, following an earlier Loan Estimate.
Can a seller pay my closing costs in Salt Lake City?
- Yes, seller concessions are possible within loan‑program limits; ask your lender for the maximum allowed for your loan type.
Are there real estate transfer taxes in Utah?
- Utah does not have a statewide real estate transfer tax; expect county recording fees and confirm any local charges with your title company.
How do HOA fees impact closing costs for a condo?
- You may see an HOA transfer or estoppel fee and possibly prorated dues at closing; also ask about any planned special assessments.
What percent should I budget for buyer closing costs?
- A common planning range is 2% to 5% of the purchase price, not including your down payment, with exact figures set by your loan, title fees, and prepaids.
What is included in prepaids and escrows?
- Prepaids often include initial months of homeowners insurance, property taxes, and daily interest from closing to your first payment; lenders may also require initial escrow deposits.
