What You Need to Know About the Closing Costs on a Portland Home
Common closing costs for buying a house in Portland include home appraisals, escrow deposits and others that may surprise you, but CCCU is here to guide you through your Oregon home buying journey.
Buying a home could be the biggest purchase of your life. Down payments can end up being a substantial amount of money. And if you’re a first-time homebuyer, the fees associated with purchasing real estate in Portland, Oregon might catch you by surprise. However, we want to help Oregon home buyers by demystifying the process.
Let’s start with the offer. When an offer is accepted on a house, it’s not uncommon for the buyer to dive into escrow without fully realizing how much they’ll have to pay in closing costs. While many real estate agents are an indispensable asset to the homebuying process, they don’t always inform buyers of all the fees they should expect. However, you should press this issue with your agent before closing on an Oregon home so you can prepare ahead of time. Consolidated Community Credit Union is also here to answer any questions about the Oregon home buying journey should you need mortgage lending or additional advice around the process.
So, what are the closing costs of buying a home in Portland, Oregon? Read on to find the answer to this question and everything else you need to know about closing on your dream home in PDX.
What are the closing costs on a home in Portland, Oregon?
First of all, what are closing costs, exactly? When you buy a home in Portland, or anywhere, closing costs refer to a multitude of fees you’ll face before closing the sale. (The closing date is when you’ll officially be a Portland homeowner. It’s the last step in the escrow process and typically a month or two after the seller formally accepts your offer.)
Some closing costs are paid to the mortgage lender and the title company or taken care of by the seller. Others are paid to real estate professionals, and some also go to third-party vendors such as home inspectors or appraisers to make sure the value of your home aligns with what you’re buying.
The most common closing costs for buying a house in Portland include:
- Credit reporting
- Home appraisal
- Property surveying
- Title search and insurance
- Mortgage origination and processing
- Escrow deposit
- Realtor commission
- Property taxes (first two months)
Keep in mind that not all homebuyers will have to pay every fee on this list, and other fees could surface that aren’t listed here. Additional closing costs may include attorney fees, recording of new land records, and discount points (AKA mortgage points for reduced interest). Some fees can also be taken care of by the seller if negotiated by you or your agent.
How much are the closing costs in Portland, Oregon?
At this point, you might be wondering, How much will I pay in closing costs when purchasing a home in Portland, Oregon? And how much are closing costs for buyers in Oregon? The fees for individual organizations and third parties are usually a sliding scale. For this reason, determining the exact dollar amount you’ll pay in closing costs is almost impossible. That being said, most Oregon buyers can expect to pay between 2% to 5% of the sale price of their Oregon home. If you need lending advice or a loan from a Portland credit union, we recommend speaking to one of our banking experts at CCCU for additional guidance to make the process easier.
What determines the closing costs on a home?
If closing costs vary from buyer to buyer, what will determine yours? Again, to answer the question, “How much are the closing costs for a buyer in Oregon,” there're a few things to consider first. To start, the primary factors that’ll matter in terms of how much or little you’ll pay include (but aren’t limited to) the amount of your down payment, your credit health, the property type, and your lender.
Generally speaking, the higher the price of the home you purchase in Portland, the higher your closing costs will be on the Oregon house you buy. While this isn’t always the case, it’s crucial that you set aside enough money to cover all potential closing costs before securing a home in Oregon or elsewhere.
The median home price in Portland is $452,473. If you’re buying a $400,000 home, you should expect to pay between $8,000 (2%) and $20,000 (5%) in closing costs on top of your down payment. Although you might end up paying closer to 2%, it’s a good idea to save up enough to cover the 5% you may need to pay in closing costs. Again, visit one of our Portland community branches for additional advice on lending solutions that cover closing costs.
Portland, Oregon mortgage programs from CCCU
The process of buying a home is complicated, to say the least. The last thing you’ll want is to pay more than you planned for when purchasing a home. With that written, homebuyers can save money by getting a low-interest mortgage through a Portland credit union. So, how much are the closing costs in Portland, Oregon? Again, that depends on several factors, but CCCU is here to offer everything you’ll need to ensure that you can close on the home of your dreams.
Portland mortgage programs from CCCU are suitable for first-time buyers and current homeowners looking to buy a new property in Multnomah County or elsewhere, as well as those who want to refinance their homes. Our Portland Credit Union offers either fixed-interest or adjustable-rate home loans with terms of up to 30 years. We also offer 100% home loan financing for income-approved buyers.
To get started, stop by one of our three conveniently located community-run branches in Portland to chat with a lending expert.