How Much are Closing Costs in Idaho?

As you get ready to settle into Idaho’s stunning landscapes, there’s one last thing you’ll need to do: pay for closing costs. These fees, covering everything from title searches to local taxes, are a key part of finalizing your home purchase. So before you dive too deep into buying new furniture or appliances, you’ll want to consider how much you’ll need to pay. To help prepare you for the final steps of the homebuying process, this Redfin article will break down how much closing costs are in Idaho, who pays for them, and what costs you can expect to pay as a buyer and as a seller.

How much are closing costs in Idaho?

Before securing the keys to your new home, homebuyers will need to pay for closing costs. Generally, closing costs in Idaho can range anywhere from 2%-5% of the home’s purchase price. But it’s important to remember that this is just a range and the total amount will depend on a number of factors, such as the purchase price of the home, the type of loan, and any adjustments negotiated with the seller.

Let’s say you’re buying a home in Boise, where the median home sale price is $505,000. Based on this, you could expect closing costs to be between $10,100 and $25,250. Whereas if you’re buying a home in Twin Falls, which has a median sale price of $362,000, closing costs could range from $7,240 to $18,100.

Who pays closing costs in Idaho?

Usually both the buyer and the seller pay closing costs. But, each party’s closing costs amount will vary depending on what they are required to pay. Another thing to keep in mind is that buyers typically pay for closing costs out of pocket, while the seller’s closing cost payments are often deducted from the home sale proceeds.

Buyer closing costs in Idaho

For homebuyers in Idaho, you can expect closing costs to range 2%-5% of the home’s purchase price. In most cases, you’ll pay earnest money, typically 1% to 3% of the home price, upon reaching mutual acceptance in your home purchase. This deposit is subtracted from your closing costs, reducing the total amount due at closing. Below are some of the common closing costs paid for by the buyer:

Appraisal fee: Your mortgage lender will require a home appraisal to ensure the home value is equal to or more than the loan amount. Home appraisals typically cost between $300 and $500, depending on location. If you pay at the time of service, it will not be included in your closing costs.
Inspection fee Although not required, a home inspection is highly recommended. Home inspections generally range from $300 to $500 in cost and are usually paid at the time of service. However, if not, it will need to be paid at closing.
Loan origination fee: Your lender may charge a fee for creating your loan. It’s important to inquire about what this cost covers and whether it’s negotiable to potentially avoid high costs.
Loan processing fee: Lenders may also charge a loan processing fee, covering underwriting and related services. Similar to the origination fee, check with your lender to understand its purpose and possible waivers.
Loan discount points: If you buy discount points to lower your interest rate, you’ll pay a one-time fee at closing. These points can lower your rate by 0.25% to 0.5%, but consider your long-term homeownership plans before paying for a reduced rate.
Private mortgage insurance (PMI): Required for down payments under 20%, PMI might involve an upfront fee at closing, depending on the loan type. It’s usually part of your monthly payment, but some loans offer the option to pay it as a one-time fee.
Title insurance: Title insurance is a one-time closing cost, with buyers commonly paying for both lender and owner policies.
Homeowners insurance: Your annual homeowners insurance premium may be included in your closing costs in Idaho.
Homeowners Association dues: For homes in HOA-managed communities, you might have to pay one month’s dues at closing, which can vary depending on the property and covers maintenance and operational expenses.
Property taxes: As part of closing costs in Idaho, you may be required to prepay a portion of your property taxes at closing.

Seller closing costs in Idaho

The closing costs covered by sellers in Idaho can vary, but below are some of the common fees and costs that a seller pays for:

Real estate agent commission fees: These fees can be a significant cost for sellers. Commission fees may vary and are subject to negotiation. Sellers should discuss their options with their agent.
Homeowners Association fees: If the property is part of a homeowners association, sellers are usually responsible for settling any outstanding HOA fees or assessments up to the date of closing. Additionally, sellers may need to provide certain HOA documents to the buyer as part of the sale.
Property taxes: Sellers are responsible for any property taxes that have accrued but not yet been paid up to the closing date. These unpaid property taxes are typically prorated for the months that you owned the property.
Title insurance: Sellers sometimes cover the cost of the buyer’s owner’s title insurance policy. This policy protects the buyer from any potential title issues that may arise after the property is sold. The cost of title insurance can vary but is generally based on the home’s sale price.

Median home sale price data from the Redfin Data Center during July 2024.

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