Quick Answer: Closing costs in Utah typically range from 2% to 4% of the purchase price. On a $400,000 home, expect to pay $8,000 to $16,000 in closing costs, which include lender fees, title insurance, escrow fees, prepaid property taxes, homeowners insurance, and recording fees. Buyers can reduce closing costs by negotiating seller concessions (up to 3-6% depending on loan type), using lender credits, or tapping down payment assistance programs that cover closing costs.
Typical Utah Closing Costs Breakdown
| Fee | Typical Range | On $400K Home |
|---|---|---|
| Loan origination fee | 0.5-1% of loan | $2,000-$4,000 |
| Appraisal | Flat fee | $450-$650 |
| Title insurance (owner's policy) | Rate schedule | $1,200-$1,800 |
| Title/escrow fees | Flat fee | $800-$1,500 |
| Recording fees | Per document | $50-$150 |
| Prepaid property taxes | 2-6 months | $400-$1,200 |
| Prepaid homeowners insurance | 12 months | $1,200-$2,000 |
| Prepaid interest | Per diem to month end | $200-$2,000 |
| Credit report | Flat fee | $50-$80 |
| Total estimate | 2-4% | $8,000-$16,000 |
How to Reduce Closing Costs in Utah
- Negotiate seller concessions: Ask the seller to pay a portion of your closing costs. FHA allows up to 6%, conventional allows 3-6% depending on down payment.
- Use DPA programs: Many Utah county programs cover both down payment and closing costs. Utah County's $40,000 DPA can be applied to either.
- Lender credits: Accept a slightly higher interest rate in exchange for the lender covering some or all closing costs.
- Close at end of month: This minimizes prepaid interest charges since you pay per diem interest from closing to month end.
- Shop title companies: Title insurance and escrow fees vary. Get quotes from 2-3 title companies.
Buyer vs Seller Closing Costs in Utah
In Utah, buyers and sellers split closing costs differently than some other states:
- Buyer pays: Lender fees, appraisal, credit report, prepaid taxes/insurance, owner's title insurance
- Seller pays: Real estate commissions (typically 5-6%), their own title insurance policy, transfer taxes, any agreed-upon buyer concessions
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Felix Vivanco
Senior Mortgage Loan Officer | NMLS #2002977
Felix has helped hundreds of Utah families find the right mortgage. Bilingual in English and Spanish. Based in Lehi, serving all of Utah.