We know that Missouri has very low taxes, but did you know it also has the lowest closing costs in the nation? For the second year in a row, New York is the state with the highest mortgage-related fees in Bankrate.com’s annual closing costs comparison survey. Home buyers in Missouri pay the lowest closing costs, according to this year’s study.

The dollar amount of closing costs depends upon the loan amount, interest rate, closing date and type of loan. However, a list of closing costs for purchasing a Condo may include the following:

Origination Fee – Required by the lender

Appraisal Fee – Required by the lender

Credit Report – Required by the lender

Interim Interest - At closing, the borrower will pay interest for the period between closing day and the first day of the next month. If the loan closes on the 20th, the borrower will pay 10 or 11 days of interest. If it closes on the 1st, the borrower would pay no interim interest.

Escrow Reserves – Required by the lender

Termite Inspection – Required by the lender

Structural Inspection/ Mechanical Inspection - Some loans require these inspections. Many buyers choose to have these inspections done, although they may not be required by the lender.

Flood Zone Determination – One of our least favorite topics in the world!

Overnight Parcel Fees - The expense of over-nighting documents for loan payoffs, and many times the buyer will close “By Mail” and will not be present for the closing.

First Year of Home Owner’s Insurance - Not always required.

Recording Fees - Money paid to the county recorder to enter the Deed of Trust into the public record.

Title Fees - A title company provides title insurance to the borrower and the bank. Title insurance provides the lender and the buyer (if you purchase owner’s coverage) with coverage for losses resulting from specific title defects listed in the policy. In cases where land and property have changed hands over time, there is always the possibility an error has occurred. If an error has occurred, it may be that someone else may be in title to or have an interest in the property. In these scenarios, if you do not have title insurance you could lose your investment in your condo. Lenders require “lender’s coverage” to protect their investment and it only protects the lender. Owner’s coverage is optional and provides separate coverage for the borrower.

The Title companies also provide closing services such as document preparation and disbursement of funds to the seller, real estate agents, inspectors, appraisers, etc. I know it sounds pretty scary, but Missouri is a very friendly State for purchasing a condominium. There are no tax stamps, no condo move-in fees, no condo association transfer fees, no credit checks by the associations, and you shouldn’t need an attorney fee for a typical closing.

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