Closing day should feel exciting, not confusing. If you are buying a home in Des Moines or anywhere in Polk County, understanding closing costs early helps you budget with confidence and avoid surprises. In this guide, you will learn what closing costs include, who typically pays what in our market, realistic local ranges, and simple ways to lower your out-of-pocket amount. Let’s dive in.
What closing costs include
Closing costs are the fees, prepaids, and adjustments you pay at settlement in addition to your purchase price. They cover lender charges, third-party services like appraisal and inspections, title and closing fees, government recording, and items paid in advance such as insurance and interest.
In the Des Moines area, buyers usually cover lender-related fees, the appraisal, inspections, some title fees like the lender’s policy, and prepaids. Sellers usually cover real estate commissions and often the owner’s title insurance policy, plus any mortgage payoff and seller-side recording. Customs can vary by deal, so confirm with your agent and the title company.
As a planning rule, buyers often pay about 2% to 5% of the purchase price in closing costs. Sellers often see about 6% to 10% of the sale price when you include commissions and typical seller-side items. Use these as estimates and verify your exact numbers with your lender and title company.
Buyer costs in Des Moines: typical items and ranges
Below are common buyer line items with local planning ranges. Your exact figures depend on your lender, property, loan type, and chosen title company.
Loan-related fees
- Loan origination or lender fee: commonly 0.5% to 1.5% of the loan amount.
- Mortgage points (optional): 1 point equals 1% of the loan amount to reduce your rate.
- Credit report: about $25 to $50.
- Underwriting or admin: about $100 to $700.
Third-party reports and inspections
- Appraisal: generally $400 to $800 for a typical single-family home in the Des Moines metro.
- Home inspection: about $300 to $700 for a general inspection.
- Additional inspections: radon, sewer scope, or pest often add $100 to $500 each.
- Survey if required: about $300 to $900, sometimes waived if a recent survey exists.
Title and closing charges
- Lender’s title insurance policy: usually a few hundred to around a thousand dollars, based on loan size and local rate schedules.
- Closing or settlement fee: typically $300 to $800. This may be split between buyer and seller depending on local custom.
- Title search or review: about $100 to $400.
Government fees and prepaids
- Recording fees: commonly $25 to $200 in Polk County, depending on documents and pages.
- Property tax proration: you are responsible from your closing date forward. The amount depends on the parcel and timing.
- Homeowners insurance: your first year’s premium or a portion may be collected, often $600 to $2,000.
- Prepaid interest: covers interest from closing to your first mortgage payment.
- Escrow deposits: your lender may collect 2 to 6 months of tax and insurance reserves.
Other possible buyer costs
- HOA transfer or initiation fees: about $100 to $500, if applicable.
- Flood certification: about $10 to $30.
- Wire fees: about $25 to $50.
- Seller-paid concessions: negotiated credits that can offset your closing costs.
Polk County and Iowa specifics to confirm
- Recording fees are set by the Polk County Recorder’s Office and vary by document and page count. The title company will calculate exact amounts.
- Property tax proration follows the county calendar. The closing agent will pull Polk County tax records to calculate your share.
- Owner’s title insurance is often paid by the seller in many Iowa transactions, but customs can vary. Confirm on each deal.
- Transfer taxes are uncommon in Iowa. Verify any state or county transfer tax with the Recorder or your title company.
- You will receive a Loan Estimate within three business days of applying for a loan and a Closing Disclosure at least three business days before closing. Compare these to track your costs.
What sellers typically pay
If you are also selling, this snapshot helps you plan the other side of the move.
- Real estate commissions: often the largest item. Many sales reflect a total commission around 5% to 6% of the sale price. Commission is negotiable.
- Owner’s title insurance policy: commonly paid by the seller in many Iowa deals. Cost depends on price and title rate schedules.
- Mortgage payoff and lien releases: includes outstanding principal, accrued interest, and any lender fees or penalties.
- Seller-side recording and transfer paperwork: nominal recording charges to clear the seller’s interest.
- Tax or HOA prorations to the buyer, if prepaid by the seller.
- Repairs or credits negotiated after inspections.
Sellers often see total costs in the 6% to 10% range of the sale price before accounting for mortgage payoff.
Real examples for Des Moines buyers
Use these as planning guides. Your actual costs depend on the home, timing, and negotiations.
Example A: $200,000 home
- Buyer estimate at 2% to 5%: $4,000 to $10,000
- Seller estimate at 6% to 10%: $12,000 to $20,000
Example B: $350,000 home
- Buyer estimate at 2% to 5%: $7,000 to $17,500
- Seller estimate at 6% to 10%: $21,000 to $35,000
Example C: $500,000 home
- Buyer estimate at 2% to 5%: $10,000 to $25,000
- Seller estimate at 6% to 10%: $30,000 to $50,000
Sample buyer breakdown at $350,000
- Appraisal: $500
- Inspection: $450
- Loan origination at 0.75%: $2,625
- Lender, title, recording, and misc: $1,200
- Prepaids for insurance, escrow, and interest: $3,000
- Total example: about $7,775, or roughly 2.2% of price
Ways to lower your cash to close
- Ask for seller credits toward closing costs. This is a common negotiation lever.
- Shop multiple lenders. Compare rates, points, and origination fees with the Loan Estimate.
- Compare title and closing fees. Some service fees vary by company.
- Weigh points and rate choices. A slightly higher rate can reduce upfront costs, but check long-term math.
- Consider timing. Your closing date can affect tax proration and prepaid interest.
- Paying all cash removes lender fees and the appraisal, though you still have title, recording, and prepaids.
Key documents to watch
- Loan Estimate: You receive this within three business days of application. It outlines your estimated rate, payment, and closing costs.
- Closing Disclosure: You receive this at least three business days before closing. It shows your final loan terms and exact cash to close.
Compare the two closely. Ask your lender and title company to explain any changes.
Simple next steps to get your exact number
- Ask your lender for a Loan Estimate. You will receive it within three business days of application.
- Request a preliminary title fee quote from a local Polk County title company.
- Review property tax records with the title company to understand proration and escrow deposits.
- If you are selling, request a Seller Net Sheet from your listing agent.
- Meet with a local agent to strategize credits, timing, and offer terms that fit your budget.
When you are ready to buy in Des Moines, a local team can help you plan the full picture, from inspections to final cash to close. If you want a clear, custom estimate and a negotiation plan that fits your budget, reach out to the Mauro Team to schedule your free consultation.
FAQs
What are typical buyer closing costs in Des Moines?
- Plan for about 2% to 5% of the purchase price, depending on your loan type, rate, points, and escrow deposits.
Who usually pays for title insurance in Polk County?
- Local custom often has the seller pay for the owner’s title policy, while the buyer pays the lender’s policy, but confirm on each transaction.
Are there transfer taxes for Iowa home purchases?
- Transfer taxes are uncommon in Iowa, but you should verify current requirements with the Polk County Recorder or your title company.
What should I bring to closing as a buyer?
- Bring a government ID and instructions for sending your final funds as a wire or cashier’s check, plus any documents your lender or title company requests.
Can I roll closing costs into my mortgage?
- Some costs can be offset by seller credits or financed through rate and point choices; ask your lender to compare options and long-term costs.
