Are you wondering how much cash you need at closing beyond your down payment in Saint Paul? You’re not alone. The mix of fees, prepaids, and escrow deposits can feel unclear the first time you see them. In this guide, you’ll get a clear, local breakdown of what buyer closing costs typically include, what varies in Ramsey County, and how to plan your cash to close with confidence. Let’s dive in.
What closing costs cover
Most buyers in Saint Paul should budget about 2%–5% of the purchase price for typical closing costs, not including your down payment. On top of that, you’ll usually pay “prepaids” and an initial escrow deposit for items like homeowner’s insurance and property taxes. These often add several hundred to several thousand dollars depending on timing and price point.
Your cash to close is the sum of your down payment, 2%–5% in closing costs, plus prepaids and escrow deposits, minus any seller or lender credits and your earnest money.
Typical buyer costs in Saint Paul
Loan and lender fees
- Origination, underwriting, processing: commonly 0.5%–1.5% of the loan amount.
- Discount points (optional): one point equals 1% of the loan amount to buy down your rate.
- Credit report: usually $25–$60.
- Appraisal: $350–$900 in the Twin Cities, depending on property type and complexity.
- Miscellaneous loan fees such as flood certification: often $10–$60 each.
Third-party inspections and services
- Home inspection: roughly $300–$600 for a mid-size single-family home. Adding radon, sewer scope, or termite will increase the total.
- Pest or termite inspection: $50–$200 depending on scope.
- Survey if required: $300–$1,000+ based on size and complexity.
Title and settlement costs
- Title search, exam, and settlement fees: vary by company; often a few hundred dollars to $1,000+.
- Lender’s title insurance: typically required and paid by the buyer.
- Owner’s title insurance: who pays can vary by contract and custom. Ask early so you can budget accurately.
Government charges and recordings
- Recording fees for deed and mortgage: set by Ramsey County and typically paid at closing; buyers usually pay the mortgage recording fee.
- Documentary or transfer taxes: confirm applicable Minnesota rules during your transaction.
- Property tax proration: you may reimburse the seller for taxes already paid or receive a credit for taxes owed. This is a proration, not a fee, but it affects your cash to close.
Prepaids and escrow deposits
- Homeowner’s insurance: usually the first year’s premium is paid at closing or proof of payment is required.
- Prepaid interest: covers interest from your closing date to your first mortgage payment.
- Initial escrow deposit: many lenders collect a few months of taxes and insurance, often around two months, but this varies by lender and program.
Other potential costs
- HOA-related fees or capital contributions when buying a condo or HOA property.
- Attorney fees if you choose to engage legal counsel.
- Buyer-side recording or release fees for any title actions.
What varies and why
Owner’s title policy custom
Who pays for the owner’s title insurance can differ by local practice and contract. Confirm with your agent and title company early in negotiations.
Loan program and credit profile
Conventional, FHA, and VA loans allow different levels of seller concessions and have different upfront costs. Your rate, points, and lender fees can vary with your credit profile.
Property type and complexity
Large, unique, or luxury properties can require higher appraisal or survey costs due to added scope.
Price point
Percent-based items and points scale with the loan size, so the dollar impact rises with price.
Local fees and taxes
Recording fees, any transfer taxes, and property tax proration depend on Ramsey County and Minnesota rules. Check current figures during your transaction.
Estimate your cash to close
Use your lender’s required disclosures to plan with precision.
Key documents and timing
- Loan Estimate: must be provided within three business days of application. Use it to compare offers.
- Closing Disclosure: must be delivered at least three business days before closing. It shows final numbers and cash to close.
Compare the right line items
- Loan terms: rate, loan type, and term.
- Loan costs: origination, underwriting, and any discount points.
- Third-party charges: appraisal and credit report.
- Title and settlement estimates.
- Prepaids and initial escrow deposit.
- Credits: seller concessions, lender credits, and your earnest money.
Watch for red flags
- Ask your lender to explain any fee increase larger than $100 or roughly 10% for a category.
- Certain lender-originated fees have strict change limits. If something jumps on the Closing Disclosure, request a line-by-line explanation before you sign.
- Confirm the title company listed matches the party providing the services.
A high-end example in Saint Paul
Here is an illustrative scenario to help you plan. Actual figures depend on your loan, property taxes, insurance, and timing.
- Purchase price: $800,000; 20% down payment = $160,000.
- Estimated closing costs at 3%: $24,000.
- Prepaids and initial escrow estimate: $6,000.
- Earnest money deposited: $10,000 credit at closing.
- Estimated cash to close: $160,000 + $24,000 + $6,000 − $10,000 = $180,000.
For higher price points, model conservatively so you are not surprised by escrow deposits or proration.
Local action checklist
- Ask your lender for a Loan Estimate and keep it handy for comparisons.
- Request a detailed title and settlement fee quote from your chosen title company.
- Confirm who pays the owner’s title insurance in your purchase agreement.
- Verify current recording fees with the Ramsey County Recorder.
- Check property tax amounts and timing with Ramsey County Assessor or Treasurer.
- Get a homeowner’s insurance quote to estimate the first year’s premium.
- Ask your lender for a sample Closing Disclosure from a similar recent loan to preview typical escrow deposits.
- Track your earnest money credit and any seller or lender credits.
Tips to reduce your cash to close
- Negotiate seller concessions within your loan program’s limits.
- Compare lenders on the full cost, not just the rate. A small rate change with lower points can reduce upfront costs.
- Time your closing date to manage prepaid interest. Closing near month end usually lowers prepaid interest.
- Shop allowed third-party services, such as title and inspections, for competitive pricing.
Work with a trusted guide
Having an experienced local advocate keeps your numbers accurate and your closing smooth. If you want design-forward guidance and meticulous planning from first showing to final signature, connect with Shane Spencer for tailored buyer representation in Saint Paul and across the Twin Cities.
FAQs
What are typical buyer closing costs in Saint Paul?
- Most buyers should budget 2%–5% of the purchase price for closing costs, plus several hundred to several thousand dollars for prepaids and escrow deposits.
How do prepaids and escrow affect cash to close?
- You often prepay the first year of homeowner’s insurance, cover prepaid interest from closing to your first payment, and fund an initial escrow deposit for taxes and insurance.
Who pays for owner’s title insurance in Ramsey County?
- It depends on local custom and your purchase contract; confirm with your agent and title company at the offer stage so you can budget accurately.
Why do lenders’ closing cost estimates differ?
- Fee structures, discount points, third-party charges, and how costs are bundled vary by lender; compare Loan Estimates line by line and ask for explanations of differences.
What if my Closing Disclosure is higher than my Loan Estimate?
- Ask for a line-by-line explanation; some categories have strict limits on changes, and you should understand any increase before signing.
How can I estimate cash to close early in the process?
- Start with your Loan Estimate’s “Estimated Cash to Close,” verify down payment, closing costs, and prepaids, then subtract earnest money and any credits to see your net amount.
