Average closing costs in Utah

Buying a home involves more than just the purchase price, and understanding closing costs can help you plan for the full financial picture. These costs cover the services and documentation required to complete the transaction. In Utah, buyers and sellers share these expenses, and totals vary based on the home, financing, and local requirements. Reviewing closing costs can help you prepare and avoid surprises later.

Key takeaways:

• Closing costs in Utah average about 2.27% of the home’s purchase price for buyers.
• Buyer expenses commonly include loan origination fees, inspections, appraisals, and title insurance.
• Seller costs often include agent commissions, prorated taxes, title fees, and deed preparation.
• Many fees — such as lender charges, title services, and optional third-party costs — can be compared or negotiated to help reduce overall expenses.

How much are closing costs in Utah?

With the median home sale price around $577,200, a buyer in Utah can expect to pay roughly $13,180 in closing costs, which equals about 2.27% of the home’s purchase price. These costs typically include lender fees, appraisal charges, title insurance, escrow services, and taxes that buyers and sellers settle as part of the transaction.

Closing costs in Utah can vary based on location, loan type, and the service providers involved. Buyers should account for these factors when estimating their total up-front expenses and planning their budget.

What affects closing costs in Utah?

Several factors influence how much buyers pay in closing costs in Utah, including:

• Where you’re buying: Local recording fees, insurance rates, and taxes vary by county and city.
• The home’s price: Higher home prices increase percentage-based fees.
• Your loan type: FHA, VA, and conventional loans come with different fee and insurance requirements.
• Title and escrow services: Costs vary by provider and the complexity of the title search.
• Taxes and recording fees: Local transfer taxes, prorated property taxes, and recording charges differ by jurisdiction.
• Prepaid costs: Includes homeowners insurance, prepaid interest, and escrowed taxes.

Seeing how these pieces fit together helps Utah buyers better estimate their total cash to close and plan ahead.

Are closing costs in Utah above average?

Nationally, closing costs typically range from about 0.4% to 3% of a home’s purchase price. Based on the Lodestar’s average national sales price of $438,236, typical national closing costs can fall between roughly $1,750 and $13,150. With an average buyer closing cost of 2.27%, Utah trends in the middle of the national range, largely due to lower transfer taxes and more moderate title and recording fees.

Overall, Utah’s closing costs tend to be lower than the national average, which can help offset the state’s higher home prices. To better understand the closing process, explore what happens when closing on a house and learn how transfer taxes factor into your final costs.

What do Utah’s closing costs include?

Closing costs in Utah consist of the fees and services needed to complete a home purchase and legally transfer ownership. Some costs are associated with the lender and mortgage, while others cover inspections, insurance, and administrative processing. Understanding these fees ahead of time can help buyers avoid last-minute surprises.

• Lender-related fees: Application, origination, underwriting, and credit check fees, as well as optional charges related to a mortgage rate lock.
• Appraisal fees: Required to confirm the home’s market value. Learn more about home appraisal.
• Home and pest inspection fees: Covers evaluations for structural issues and pests. A home inspection checklist outlines what inspectors typically review.
• Title search and insurance: Ensures the property has a clear title and protects the buyer and lender. See title insurance for more details.
• Survey fees: Confirms property boundaries and easements when required.
• Courier and recording fees: Covers document transport and county recording of legal paperwork.
• Notary fees: Verifies signatures on closing documents.
• Prepaid items: Includes homeowners insurance, property taxes, prepaid interest, and home owners insurance dues, if applicable.
• Private mortgage insurance (PMI): Required for loans with less than 20% down.
• Attorney fees: Paid if legal assistance is used during the transaction.
• Mortgage discount points: Optional upfront payments that lower the interest rate; learn more about mortgage points.

Each of these fees contributes to a smooth and legally compliant home purchase. Reviewing your Loan Estimate and Closing Disclosure will help you understand exactly how these costs add up.

Who pays closing costs in Utah?

In Utah, both buyers and sellers are responsible for certain closing costs. While there are standard expectations for who pays which fees, the final breakdown can vary based on negotiations and loan requirements.

Closing costs for buyers

Buyers in Utah usually pay the majority of lender- and property-related fees. These costs ensure the mortgage is processed correctly and the property is legally transferred. Common buyer closing costs in Utah include:

• Loan application and origination fees
• Home appraisal and inspection
• Title search and lender’s title insurance
• Prepaid expenses
• Recording and notary fees
• Attorney fees (if used)
• Mortgage discount points

Each of these expenses plays a role in protecting the buyer and lender during the transaction. Planning ahead can help buyers stay on track financially. For help budgeting upfront costs, see first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Utah also have closing-related expenses, some of which overlap with buyer costs. The real estate agent commission is typically the largest seller cost, but additional fees may apply. Common seller closing costs in Utah include:

• Real estate agent commissions
• Owner’s title insurance and title-related fees
• Prorated property taxes and HOA fees
• Deed preparation and recording fees
• Attorney fees (if used)
• Outstanding mortgages and liens
• Seller concessions

Sellers can learn more about managing a sale with an existing loan in can you sell a house with a mortgage.

How to reduce your closing costs in Utah

Although certain closing costs in Utah — such as title insurance, recording fees, property taxes, and prepaid interest — are nonnegotiable, buyers can often reduce other expenses with the right approach. Planning ahead and comparing options can help lower overall closing costs.

• Research home buyer assistance programs: Utah Housing Corporation offers several programs that provide down payment and closing cost assistance for eligible buyers. Some areas may also qualify for USDA Rural Development loans, which can reduce upfront cash requirements.
• Shop around for a lender: Lender fees vary, so comparing loan offers can help you secure lower origination or underwriting costs. Learn more in how to choose a mortgage lender.
• Negotiate seller concessions: In certain situations, sellers may agree to cover part of a buyer’s closing costs. Explore your options in seller concessions.
• Consider a no-closing-cost mortgage: Some lenders offer loans that reduce upfront expenses by rolling closing costs into the loan or adjusting the interest rate. Learn more about this option in no-closing-cost mortgage.

Even though some fees can’t be changed, understanding which closing costs are negotiable can help Utah buyers save where it counts.

FAQ on closing costs in Utah

Does Utah require paying for a real estate attorney?

No, Utah does not require buyers or sellers to hire a real estate attorney. Most closings are handled by title companies and escrow officers. Some buyers and sellers still choose to hire an attorney for additional guidance in complex transactions. Learn more about when a real estate attorney may be helpful.

When do Utah buyers find out their closing costs?

Utah buyers receive an estimate of closing costs early in the loan process. Lenders provide a Loan Estimate within three business days of applying. At least three days before closing, buyers receive a Closing Disclosure outlining final costs. Reviewing both documents helps avoid surprises.

When and how will I pay my Utah closing costs?

Closing costs in Utah are typically paid on closing day when ownership transfers. Buyers usually pay by cashier’s check or wire transfer to the title company. The exact amount due and payment instructions are included in your Closing Disclosure. Learn more about what to expect when closing on a house.

How can I save up for Utah’s closing costs?

Closing costs in Utah average about 2.27% of the home’s purchase price. Buyers can prepare by saving consistently, setting aside tax refunds or bonuses, and exploring assistance programs through Utah Housing Corporation. For more tips, see how to save for a house.

Are Utah’s closing costs deductible on my taxes?

Most closing costs in Utah aren’t tax deductible, including appraisal fees, title insurance, and recording costs. However, mortgage interest paid up front and prorated property taxes may qualify for deductions. Homeowners who itemize can also benefit from ongoing mortgage interest and property tax deductions. Learn more in are closing costs tax deductible and tax deductions for homeowners, or refer to IRS Publication 530 and Tax Benefits for Homeowners.

The bottom line: Prepare your finances for Utah closing costs

Closing costs in Utah generally average about 2.27% of the home’s purchase price and include lender charges, title fees, insurance, taxes, and recording expenses. These costs are shared between buyers and sellers, though the final amount depends on factors like location, loan type, and negotiated terms. Understanding your expected costs — and which fees may be reduced — can help you budget more effectively. If you’re ready to buy a home in Utah, now’s a good time to get preapproved and begin the mortgage application process.