Purchasing a home in Wyoming comes with its fair share of costs. Most buyers are aware of upfront costs like the down payment. But what about closing costs? If you haven’t thought about them, you could be underestimating the cost of your home. Here’s what to know about Wyoming closing costs.
Most home buyers are familiar with the down payment. It’s the major upfront payment that most home buyers think of when calculating the costs of homeownership. However, the down payment isn’t the only thing you have to be concerned with.
Closing costs can add a lot of expenses that, if you’re not expecting them, can serve as a harsh surprise when they come up. It’s important to do your homework and figure out what closing costs buyers in Wyoming are expected to pay.
Working with a local real estate agent can help you avoid common pitfalls and properly prepare for the true costs of buying a home, closing costs included.
If you want to connect with a top-rated Wyoming buyer's agent, Clever can help. Fill out our online form and we’ll be in touch to answer any questions you might have and introduce you to one of our local Partner Agents for a no-obligation consultation.
Closing Costs for Wyoming Homes: What to Expect
According to data from Bankrate, the average buyer in Wyoming spends around $1,978 on closing costs.
However, this study doesn’t account for a number of variable costs that are often wrapped into closing costs. For instance, the fees associated with title insurance, title search, taxes, and other governmental costs, escrow fees, and discount points are also a part of closing costs.
Though variable, the general rule of thumb is that buyers should expect to spend anywhere from 2% to 5% of the purchase price of their home on closing costs.
While closing costs can be expensive, one of the largest mortgage expenses is the interest rate. Over the life of the loan, a few small percentage points can result in hundreds of thousands of dollars in interest payments.
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Common Closing Costs for Wyoming Home Buyers
Closing costs in Wyoming include a long list of fees, payments, and associated expenditures that run the gamut from government filing fees to taxes and everything in between.
Mortgage Origination Fees
As outrageous as it might sound, you actually have to pay the lender a fee to originate your mortgage. Basically, you’re paying to begin the mortgage process. Usually, this fee isn’t too large, but it certainly adds to the already long list of closing costs you’ll be responsible for.
Credit Report Fees
This fee is relatively straightforward. You have to pay (usually) for the credit report that your lender runs on you. Sometimes this fee is waived, but it’s worth taking into consideration regardless just so you know that it might show up as part of your closing costs.
Discount points are upfront, prepaid points that you purchase in an effort to lower the interest rate your lender will charge you later on. It’s a little bit like paying for tokens that you use to obtain a discount later on.
In almost every real estate transaction, an appraisal has to be done to determine the value of the property. Typically, the buyer pays this fee, which can be anywhere from $300 to $500 or more.
Real Estate Agent Fees
While the seller usually covers real estate agent commission, there are still a number of fees that you, as a buyer, might have to pay. What’s more, the negotiation phase determines who pays what, so just because the seller normally pays the buyer’s agent’s commission, that could change during negotiation.
Title insurance is a type of insurance you pay to protect yourself against any title-related errors. For instance, if you find out later on that there’s a lien against the property that the buyer didn’t disclose, your title insurance will probably protect you from having to pay those fines. In most cases, having title insurance is non-optional and is the buyer’s responsibility, since the buyer will now be the title holder.
Private Mortgage Insurance (PMI)
If you have a conventional mortgage loan with a down payment of less than 20%, you’ll have to pay for private mortgage insurance. This cost is the buyer’s responsibility without question, in most cases.
This fee varies from 0.3% to 1.5% of the total loan amount and is an annual expense. However, the size of the loan, your credit score, and other factors determine how much you’ll have to pay.
Between the date of closing and the end of the month, several insurance costs and other related expenses will likely accrue. These fees are wrapped up in prepaid costs, or fees the buyer pays in advance when getting a loan. Not every buyer will have prepaid costs, although most do, and the amount you’ll have to pay can vary widely depending on your situation.
Other Closing Costs
Recording fees, state taxes, and transfer taxes are also wrapped into closing costs. In addition, you’ll have to consider costs such as surveys, which usually cost between $350 and $500, title searches, which are usually between $200 and $300, and notary fees, which range from $75 to $150 on average.
While many of these fees seem small, it’s easy to see how they can all add up to a substantial amount of money that you might not have realized you’re responsible for.
By the time you finish compiling all the fees and costs associated with closing costs, you can see a clear picture of how important it is to be prepared for closing. Be sure to work with a local, experienced real estate agent in Wyoming to help you through the process so you don’t miss anything.
Many of the above closing costs also have paperwork associated with them. This paperwork has to be filed on time in a certain order, and missing one step of the process can set your home buying process back months. Work closely with an experienced real estate agent to help you through the home buying process.
Other Costs to Consider
Closing costs, when added to your down payment, constitute the bulk of the upfront costs you’ll incur when purchasing a home. But as a new homeowner, your financial obligations don’t end there.
For instance, your homeowners insurance policy and property taxes have to be taken into consideration. These are recurring fees that you’ll have to stay on top of. In addition, you’ll have to pay higher utility rates, and you’ll also have to consider ongoing maintenance costs.
Ensuring your financial stability and being honest with yourself about your fiscal readiness is a critical step that every home buyer has to take before making the decision to sign on the dotted line.
How to Save on Closing Costs in Wyoming When Buying a Home
There are several ways you can save on closing costs in Wyoming, especially if you partner with a local real estate agent who has local experience.
For one thing, most of the closing costs are settled during negotiations. When you negotiate with the seller, you can sometimes walk away having to pay fewer closing costs than you initially would have. Sellers might agree to work with you on a number of closing costs in order to secure a more amicable transaction.
For another, you might be able to obtain assistance through a closing cost assistance program. There are several state, federal, and private lending options that often cover closing costs or allow you to obtain a certain amount of money to be put toward closing costs. For instance, the Federal Housing Authority (FHA) has several federal and state programs designed to help with closing costs.
If you’re a first-time home buyer, there are various programs from agencies such as Fannie Mae and Freddie Mac that can also be beneficial where closing cost assistance is concerned.
Lastly, Clever Cash Back can act as an additional cost savings opportunity for home buyers in Wyoming. Eligible buyers can get a check for 0.5% of the purchase price after closing on a home over $150,000.
This can help offset all the costs of buying a home. Fill out our online form and get started today with a no-obligation consultation.