Closing costs are an essential part of any real estate transaction, but they can be confusing and overwhelming if you’re not familiar with the real estate process. This is especially true when you’re not sure how much money you’ll have to devote to these costs. If you’re buying a property in Indiana and need guidance on closing costs, you’ve come to the right place! Join us as we break down Indiana closing costs so you can be prepared for your transaction.  


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What are Closing Costs?

Closing costs are fees associated with the purchase or sale of a property that are beyond the property’s selling price. These fees are put upon both the buyer and seller and are necessary to finalize the transfer of ownership and ensure that the property is legally transferred from one party to another. 

For the buyer, lenders are legally required to provide buyers with a closing disclosure that outlines the closing costs three business days before a scheduled closing 


Indiana Closing Costs: A Breakdown

Lender Fees

Loan Origination Fees: Loan origination fees are for the cost of processing and approving your loan. These fees typically range from 0.5% to 1.5% of the loan amount. 


Underwriting Fees: Underwriting fees are for the evaluation of your application and determining whether to approve your loan and will sometimes be charged in place of or in addition to the loan origination fee. On its own, you can expect to pay between $300 to $900. 


Title Fees

Title Insurance/Search Fees: Title search and insurance fees are processed as one flat fee in Indiana. This payment is for conducting a search of public records to ensure that the title is clear of any liens or claims as well as the insurance that you will be safeguarded against any undiscovered problems that may arise after the property transfer. These fees are typically $400 to $700.  


Government Fees

Recording Fees: Also called transfer taxes, recording fees cover the cost of recording the deed and other documents associated with the transfer of ownership. These fees tend to be $50 and are paid to the county recorder’s office to officially document the change in ownership. 


Couple who were prepared for closing costs standing in front of new home with keys.

Buying a home is an exciting process and knowing you’re prepared for the closing costs makes it easier.


Third-Party Fees

Appraisal Fees: Appraisal fees cover the cost of determining the property’s market value. You can expect to pay around $300 to $500. Lenders require appraisals to ensure that the property’s value justifies the loan amount. 


Inspection Fees: Inspection fees cover the cost of conducting a thorough inspection of the property and are necessary to identify potential issues or problems such as structural defects or safety hazards. It’s not unusual for inspection fees to cost $300 to $500. 


Survey Fees: Survey fees cover the cost of conducting a survey of the property to ensure that there are no boundary disputes or other issues. These fees typically range from $200 to $400. 


Factors Affecting Closing Costs

It’s important to note that the total amount of closing costs you’ll pay depends on several factors. These factors include the purchase price of the property, the loan amount, the location of the property, and any other circumstances. 


Tips for Reducing Closing Costs

If you’re looking for ways to keep your closing costs low, here are some tips: 

  1. Negotiate with the Lender: Ask your lender to waive or reduce some of the fees associated with your loan. 
  2. Explore Different Loan Options: Shop around for different loan options to find the one that offers the best rates and fees. 
  3. Understand Potential Discounts or Rebates: Some services may offer discounts or rebates, so be sure to ask about any potential savings. 


Close with Confidence at Metropolitan Title

Closing costs can be a confusing aspect of the real estate process, especially if you’re unfamiliar with the details. However, a trusted title company like Metropolitan Title by your side will help you navigate these complexities. Our team provides exceptional services at a fair and honest price. Contact Metropolitan Title today to learn more about Indiana closing costs and how we can assist you in your real estate transaction. 

Want to learn more about closing costs? Learn which costs are tax deductible with our helpful blog! 


Wondering what to expect at your closing? This helpful video explains all! Watch the video here.