Oklahoma Closing cost
Whether you are looking at buying a home in Tulsa for the first time or about to close on a home, you are probably wondering what the Oklahoma closing costs will cost you. The good news is that Oklahoma closing costs are actually relatively low compared to surrounding states.
Many people move to Tulsa because the cost of living is still lower than any other major cities, but the luxury homes are in abundance. This makes it easy to afford a better lifestyle without paying extra for it. Families and retired couples often find the lower real estate prices extremely attractive. If you need a Realtor Call Now
Average Oklahoma Closing Costs
As mentioned, the average Oklahoma closing costs are comparatively low. On average, a person purchasing a $200,000 home can expect to pay between $1,761 to $9,000 in closing costs which is just an estimated cost.
The number can increase some as the purchase price of a home goes up, but it will not be a dramatic rise because most closing costs are fixed. There are a few variable costs that can increase with the size of the purchase, but most will stay the same.
Closing costs in neighboring states can cost much more, so Oklahomans enjoy this special perk making it more affordable to own homes within the state.
What are Oklahoma Closing Costs?
Most people want to know how the figure is compiled that creates the magical closing cost number. Lender fees account for a large portion of closing costs, but there are non-lender fees that come into play as well.
Lender fees include money that is owed to the mortgage company or bank in order to close. If you are able to buy a home in cash then you will not need a lender, which means that your closing costs will be substantially lower.
As the name implies, non-lender fees are fees that are owed to other entities involved in the sale of a home such as the title company or home appraiser.
A Closer Look at Lender Closing Costs
It can be overwhelming to look at your closing papers and try to figure out where all of these numbers and fees are originating from. Most likely your bank or mortgage agent will quickly run through it, but your mind will still be spinning.
It is helpful to be aware of the Oklahoma closing costs you can expect to see before you get to this point. The largest portion of your lender closing cost is going to be the origination fee. This is the charge that the loan officer charges for offering their services to you and brokering the sale.
These fees used to be astronomical if you had marginal credit, but now regulations have forced mortgage companies to be better. Now most origination fees are slightly less than 1% of your total home loan. You can also expect to see a tax services fee and a document preparation fee, but these fees could be less than $100.
A Closer Look at Non-Lender Closing Costs
Non-lending closing costs can be both fixed and variable so it is important to keep a close eye on these. The size of the real estate property will play a role in the price of the total non-lender closing costs.
The largest portion of non-lender closing costs is usually the settlement fee which refers to the amount that is paid to a title agency or real estate attorney for transferring the title into your name. Many times, your lender will choose a title company for you, but you are not obliged to take their recommendation.
Therefore, if this cost seems high you are allowed to choose your own title agency or real estate attorney. You should expect to pay $450 to $500 and up for this service.
The next substantial fee is the appraisal fee, which is the price you pay for a license appraiser to look at the property. This is not your home inspection, which you will pay for separately before you reach closing states of the deal.
This is the home appraiser that your lender will require be sent out to examine the property and ensure that it is listed at a fair market value based on location, size, and comparables. Your lender will require that you have this appraisal done because it protects their investment and ensures that your loan is equivalent or less than the worth of a home.
Additionally, you may have a property survey done as part of your closing costs. Usually this costs about $250 in Oklahoma and will allow you to note the exact boundaries of your lot so that you are clear on what belongs to you. Some homes have fairly recognizable boundaries, while others with larger lots can harder to point out.
Additionally, marginal fees that may be included in your non-lender closing costs include a credit report fee, flood certification fee, and courier fee but combined you should expect these fees to cost around $100. Remember that Closing cost can be different for different homes, people, and lenders.
Types of Oklahoma Closing cost
There are one time fees and recurring fees.
One time fees and this just estimated because there could be more or less fees.
Local recording fees
Then you have your Recurring Cost which there could be more or less:
Private Mortgage Insurance