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If you’re considering purchasing a home in Kansas, you’ll want to know how much closing costs will be. Here’s a rundown of what you can expect.
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Introduction
Closing costs in Kansas depend on a few factors, including the county in which the property is located, the type of loan being used and the amount being borrowed. According to Bankrate.com, the average closing costs for a $200,000 home purchase in Kansas is $1,837. This includes fees charged by the lender, as well as third-party fees for services such as appraisal, title insurance and home inspection.
What are typical closing costs in Kansas?
While every home sale is different, there are some general fees that are typical in Kansas. The buyer can expect to pay for things like a loan origination fee, a home Inspection, and a title search. The seller will usually pay for the real estate agent’s commissions as well as any transfer taxes. Closing costs can range from around 2% to 5% of the total purchase price.
Who pays closing costs in Kansas?
The short answer to “who pays closing costs in Kansas?” is that the buyer and seller usually split the costs evenly. Who pays what depends on what is negotiated between the buyer and seller, so it’s important to have an experienced real estate agent in your corner to help you understand what costs you’ll be responsible for.
In general, closing costs for the buyer include:
-Loan origination fee: This is the fee charged by the lender for processing your loan application. It is usually a percentage of the loan amount, and can range from 0.5% to 1% of the loan amount.
-Loan discount points: These are optional fees that can be paid to lower your interest rate. Each point typically costs 1% of the loan amount.
-Appraisal fee: The lender will require an appraisal of the property in order to determine its value and make sure it meets their lending requirements. The appraisal fee can range from $200 to $600.
-Credit report fee: The lender will pull a credit report on all borrowers in order to assess their creditworthiness. This fee is typically around $30 per borrower.
-Title insurance: This insurance protects the lender against any losses that may occur if there are any problems with the property title. The cost of title insurance varies depending on the value of the property, but is typically around $1,000.
-Escrow deposit: An escrow deposit may be required in order to establish an escrow account for property taxes and insurance premiums (see below). This deposit is usually equal to two months’ worth of these payments.
-Closing agent’s fees: The closing agent or attorney will charge a fee for their services in facilitating the closing process. These fees can range from $200 to $500, depending on the complexity of the transaction.
-Pest inspection: A pest inspection may be required in order to ensure that there are no termites or other pests present on the property. This inspection typically costs between $100 and $200.
The seller usually pays for:
-Property taxes: Property taxes are typically paid through an escrow account that is set up at closing. The amount of tax owed will depend on the value of the property and the local tax rate.
-Homeowners insurance premium: Homeowners insurance is typically paid through an escrow account that is set up at closing. The premium will depend on factors such as the value of your home, its location, and your chosen coverage amounts
How to reduce your closing costs in Kansas
If you’re considering buying a home in Kansas, it’s important to understand the state’s closing costs. These fees can add up, but there are ways to reduce them.
The first step is to learn about the different types of closing costs. Typical expenses include lender fees, appraisal fees, title insurance, and escrow fees. You may also have to pay for inspections, home warranties, and other miscellaneous costs.
Once you know what to expect, you can start shopping around for the best deals. Ask different lenders about their fees and compare rates. You may be able to negotiate some of the charges, especially if you have good credit or are using the same company for your mortgage and title insurance.
It’s also a good idea to get quotes from multiple appraisal companies. Appraisers are required by law to be licensed in Kansas, so make sure your chosen appraiser is qualified.
Finally, don’t forget to factor in the cost of title insurance. This type of insurance protects you from financial losses if there are any problems with the title to your home. Be sure to shop around for the best rates on title insurance.
Conclusion
Closing costs in Kansas generally fall in the range of $500 to $1,500. This includes both lender and third-party fees.
Your lender will likely charge a loan origination fee, which is typically a percentage of your loan amount (usually 1% to 2%). You’ll also be responsible for any third-party fees, such as appraisal and title insurance fees. These fees can vary depending on the value of your home and the services you need.
In some cases, you may be able to negotiate with your seller to cover some or all of your closing costs. This is sometimes possible if you’re paying cash for your home, or if you’re getting a particularly good deal on your home purchase. Talk to your real estate agent about whether this might be an option for you.
