How Much are Closing Costs in Iowa?

Closing costs can vary greatly based on several factors such as the type of loan, the purchase price, and the lender you choose. On average, closing costs in Iowa can range from 2% to 5% of the purchase price of a home. However, when buying a home in Iowa it’s important to keep in mind that these costs can vary significantly depending on the specific details of your home purchase.

Here are some of the common closing costs in Iowa:

1. Loan origination fee: This fee is charged by the lender for processing and underwriting your loan. It typically ranges from 0.5% to 1% of the loan amount.
2. Title search and title insurance: This fee covers the cost of researching the title of the property to ensure it is free and clear of any liens or claims. Title insurance protects you and the lender from potential title issues that may arise after closing. The cost of a title search and title insurance in Iowa can vary depending on several factors, including the purchase price of the home, the location of the property, and the type of title insurance policy you choose. On average, the cost of a title search and title insurance in Iowa can range from $500 to $1,000. 
3. Appraisal fee: This fee covers the cost of having the home appraised to determine its market value. The cost of a home appraisal in Iowa can vary depending on several factors, including the location of the property, the size of the property, and the complexity of the appraisal. On average, the cost of a home appraisal in Iowa can range from $300 to $500. However, the exact cost of a home appraisal in Iowa can vary widely and may be higher or lower depending on the specific details of the property being appraised.
4. Survey fee: This fee covers the cost of having a survey performed on the property to confirm its boundaries and the location of any structures on the property. On average, the cost of a survey in Iowa can range from $400 to $800. However, the exact cost of a survey in Iowa can vary widely and may be higher or lower depending on the specific details of the property being surveyed.
5. Property taxes: Property taxes are usually prorated between the buyer and the seller based on the number of days each party owns the property during the tax year. On average, property taxes in Iowa can range from 1% to 2% of the assessed value of the property.
6. Recording fees: This fee covers the cost of recording the transfer of ownership with the county. The cost of recording fees in Iowa can vary depending on the county where the property is located and the number of pages in the document being recorded. On average, recording fees in Iowa can range from $20 to $50 per document. However, some counties may charge more or less depending on the specific requirements.
7. Homeowner’s insurance: Homeowner’s insurance is required by most lenders to protect the property and the lender’s investment. On average, the cost of homeowners insurance in Iowa can range from $500 to $1,500 per year.
8. Prepaid interest: Prepaid interest covers the interest on your loan from the closing date until the end of the month.
9. Homeowner’s association (HOA) fees: If the property is part of an HOA, you may be required to pay an upfront fee to cover the cost of the HOA.

It’s important to work with a knowledgeable lender (and real estate agent) to get an accurate estimate of your closing costs in Iowa. We can help you understand what each fee covers and provide you with a detailed breakdown of all the costs involved in your home purchase, as well as offer other tips for buying a home in Iowa.