Wondering how much cash you actually need to close on a home in O’Fallon? You are not alone. Closing costs can feel confusing, especially when you are trying to plan a comfortable budget. In this guide, you will learn what closing costs include, what buyers typically pay in St. Charles County, and smart ways to lower what you bring to the table. Let’s dive in.
What closing costs cover
Closing costs are the one-time expenses due at settlement that are separate from your down payment. They include lender fees, third-party services, title and recording charges, prepaid items like taxes and insurance, and inspections. You will see every cost itemized on your Loan Estimate and later on your Closing Disclosure, which arrives at least three business days before closing.
Typical totals in O’Fallon
A common budgeting rule is to plan for about 2% to 5% of the purchase price for buyer closing costs, excluding your down payment. Your actual total depends on your loan type, lender pricing, the closing date, title and recording fees, and any negotiated seller credits. In St. Charles County, property tax proration and county recording charges are local factors that can shift your final number.
Line-by-line breakdown
Lender and loan fees
- Loan origination or application fees often run about 0.5% to 1% of the loan amount or a set flat fee.
- Underwriting, processing, and administrative charges vary by lender. Discount points are optional and typically cost 1% of your loan amount per point.
- Appraisal usually costs about $400 to $800 for a typical single-family home.
- Credit report and flood certification are small fees, often $20 to $50 each.
- Mortgage insurance or upfront program fees apply based on your loan program and down payment.
O’Fallon tip: Compare at least three lenders. Local mortgage brokers and community banks may offer different fee structures and timelines.
Title, title insurance, and settlement
- Title search and closing/settlement fees are charged by the title company and typically run several hundred dollars.
- Title insurance includes a lender’s policy and an owner’s policy. Premiums depend on the purchase price and are paid once at closing.
- Recording fees and document prep are set by the St. Charles County Recorder of Deeds and vary by document type and page count.
Local custom: It is common in many Missouri contracts for the seller to pay the owner’s title insurance premium, while the buyer pays the lender’s title policy. This is customary, not guaranteed, and can be negotiated in your offer.
Prepaids and escrow deposits
- First-year homeowner’s insurance premium is usually paid at closing.
- Property taxes are prorated based on the closing date and the county’s tax calendar.
- Prepaid interest covers the period from your closing date to the end of that month.
- Initial escrow deposits typically include 1 to 3 months of taxes and insurance to seed your escrow account.
St. Charles County note: Exact tax proration depends on county timing and your contract. Your title company and lender will calculate the final amounts.
Inspections, surveys, and other third-party costs
- General home inspection commonly runs $300 to $600.
- Specialty tests can include radon ($100 to $200), termite/WDI ($50 to $200), sewer scope ($150 to $400), and others based on the property.
- A survey, if required, can range from $300 to $1,000 or more depending on lot size and complexity.
- If the home is in an HOA, budget for potential transfer fees or resale documents.
Regional tip: Radon testing is often recommended in the St. Louis region. Ask your inspector if it makes sense for the property you are buying.
Government and recording fees
- Missouri does not have a statewide real estate transfer tax.
- County recording fees apply for the deed and deed of trust and vary by document.
Miscellaneous
- Expect small charges like wire fees, courier or notary fees, and prorated HOA dues if applicable.
- If you choose legal review, buyer’s attorney fees are extra and vary.
Who pays what here
Customs can guide expectations, but many costs are negotiable in Missouri. Common practice in O’Fallon and greater St. Charles County includes:
- Seller often pays the owner’s title insurance premium, subject to negotiation.
- Buyer typically pays lender-related fees, the lender’s title policy, appraisal, and inspections.
- Prepaids and escrow deposits are buyer expenses.
Seller concessions depend on your loan program. General guidelines many lenders use include caps on seller-paid costs. For example, conventional loans often limit concessions to 3% when the down payment is under 10%, with higher caps at larger down payments. FHA commonly allows up to 6%. VA concessions are more limited and have specific rules, and USDA loans often allow up to about 6% for closing costs. Always confirm current limits with your lender before you write an offer.
Example budgets
These samples are estimates to help you plan. Your numbers will vary by lender, program, property, and timing.
Example A, purchase price $200,000
- 2% to 4% closing costs: about $4,000 to $8,000
- Typical items: appraisal ~$450, lender fees ~$1,000 to $2,000, title and recording ~$800 to $1,800, inspection ~$350, prepaids and escrow ~$1,000 to $2,000.
Example B, purchase price $350,000
- 2% to 5% closing costs: about $7,000 to $17,500
- Typical items: appraisal ~$500, lender fees and points ~$1,750 to $5,250, title and recording ~$1,200 to $2,500, inspections and survey ~$500 to $1,200, prepaids and escrow ~$2,000 to $4,000.
You will receive a Loan Estimate when you apply and a Closing Disclosure at least three business days before closing. Those documents show your itemized, final numbers.
Cut your costs
- Compare at least three lenders. Look at interest rate, total lender fees, and any credits offered. Ask for a Loan Estimate to compare apples to apples.
- Request seller concessions. You can ask the seller to cover certain closing costs or the owner’s title policy. Structure the request to fit loan program rules and appraisal realities.
- Consider lender credits versus discount points. A credit can reduce cash due at closing in exchange for a slightly higher rate. Do the breakeven math.
- Explore first-time buyer assistance. State and local programs may offer down payment or closing-cost help and mortgage tax credits. Check current options and eligibility.
- Prioritize inspections that matter for your property. A thorough general inspection is essential. Add radon or termite testing based on local risk and property features.
- Negotiate repair credits when appropriate. A credit can reduce your cash to close and give you flexibility to address repairs after move-in.
- Protect your funds. Confirm wiring instructions by calling the title company at a known number. Never rely on an email alone.
Timeline to closing
- 3 to 7 days before closing: Your lender must deliver the Closing Disclosure at least three business days before you sign. Review every line and ask questions.
- Final walkthrough: Typically the day before or day of closing to verify property condition and agreed repairs.
- Closing day: You will sign your mortgage note, deed of trust, and final settlement documents. Keys are released after funding and recording.
What to bring on closing day
- Government-issued photo ID for all signers.
- Proof of homeowner’s insurance (binder or declarations page).
- Your final cash to close via wire or cashier’s check, per title company instructions.
- Any addenda or documents your lender or title company requested.
Local verification steps
- Ask the title company to confirm who is paying the owner’s title policy based on your contract.
- Check with St. Charles County offices for recording fees and tax proration timing specific to your property.
- Confirm seller concession limits with your loan officer for your exact loan program and down payment.
Buying in O’Fallon should feel exciting, not overwhelming. If you want clear numbers, smart negotiation strategies, and a smooth path to the closing table, the Lisa Adkins Team is here to help. Have questions or want a customized estimate for your price range and loan type? Reach out to Lisa Adkins to schedule your free consultation.
FAQs
How much are buyer closing costs in O’Fallon, MO?
- A common rule is 2% to 5% of the purchase price, excluding your down payment, with totals driven by loan type, timing, title and recording fees, and any seller credits.
Who typically pays owner’s title insurance in Missouri?
- It is often customary for the seller to pay the owner’s title policy while the buyer pays the lender’s policy, but this is negotiable and should be clarified in your contract.
Does Missouri charge a real estate transfer tax?
- Missouri does not have a statewide real estate transfer tax, though county recording fees apply for deeds and mortgages and vary by document.
What inspection costs should I plan for in St. Charles County?
- Plan for a general home inspection ($300 to $600) and consider radon ($100 to $200), termite/WDI ($50 to $200), and a sewer scope ($150 to $400) based on the property.
Can a seller pay my closing costs with FHA, VA, or conventional loans?
- Yes, within program limits. Conventional caps are commonly 3% with low down payments, FHA often allows up to 6%, and VA has specific limits. Confirm exact rules with your lender.
When will I know my exact cash to close?
- Your lender must issue a Closing Disclosure at least three business days before closing. It lists your final cash to close, including prepaids, escrow deposits, and all fees.
