Closing Costs in Cedar Rapids
Are you thinking of buying or refinancing in Cedar Rapids? Curious about closing costs? We can answer that question!
Closing costs are, in general, the costs to get a loan file from application to closing. Down payment is separate from closing costs and is your investment in the property while closing costs are fees to get your file ready for closing. They include:
- an appraisal of the property, if required
- title work to make sure you obtain a free and clear title to the property at closing
- flood plain verification
- recording the mortgage and/or deed after closing.
Those costs can vary a little by county, but closing costs in the Cedar Rapids area should be less than $2,000.
The closing costs will differ whether you are doing a purchase or a refinance. Often, if you are doing a refinance the appraisal can be waived, depending on the loan program and how much equity you have in the property. This significantly reduces your closing costs in Cedar Rapids and surrounding communities.
On a purchase transaction there are times when an appraisal is waived. The appraisal is used to support the value of the property and can be very useful to both buyer and lender for that reason. If your lender offers to waive the appraisal, speak with your Realtor about this option, too.
Other closing costs for title work vary based on purchase or refinance, but are fairly similar. A lien search makes certain there are no unpaid liens against the property. A lender would require any liens be paid at or prior to closing.
Iowa also has abstracting fees. On a purchase transaction the seller’s side pays to update the abstract (or legal history of the property). After closing, the abstract is finalized with the newly recorded documents reflecting the property changing hands.
If you have any additional questions – let us know! We would love to talk to you about your mortgage options for a purchase or refinance in the Cedar Rapids area! We offer VA, Rural Development, Conventional and FHA financing and underwrite our loan files in-house for quick turn times to closing.