Bismarck Buyer Closing Costs: What To Expect

Staring down a closing date in Bismarck and wondering how much cash you’ll actually need to bring? You’re not alone. Closing costs can feel confusing, especially when you’re weighing lender fees, title charges, and escrow deposits on top of your down payment. In this guide, you’ll learn what buyer closing costs include, how much to expect in Burleigh County, how costs change by loan type, and simple steps to estimate your total. Let’s dive in.

What closing costs include

Buyer closing costs are the one-time fees and prepaid items you pay, or finance, at settlement. They typically include lender charges, third-party services like appraisal and title, prepaid insurance and taxes, and initial escrow deposits. Nationally, buyers usually spend about 2% to 5% of the purchase price on closing costs.

Your final number in Bismarck depends on your loan type, lender pricing, purchase price, whether you receive seller or lender credits, local title rates, and the timing of property tax proration. Federal rules require your lender to give you a Closing Disclosure at least 3 business days before closing, which lets you review and verify the final figures.

Typical buyer-paid costs

Exact fees can vary by lender, property, and contract terms. Here are the common items you’ll see in Bismarck and Burleigh County:

Lender and loan charges

• Loan origination fee, often 0.5% to 1.5% of the loan amount
• Discount points if you choose to buy down the rate (1 point equals 1% of the loan)
• Credit report, usually about $30 to $50
• Processing and underwriting, often $300 to $1,000 combined

Third-party inspections and services

• Appraisal, generally $400 to $800 for a typical single-family home
• General home inspection, commonly $300 to $600; optional tests like radon, well, septic, or mold are extra
• Survey if required, about $250 to $800 depending on type and lot size
• Pest or termite inspection if required

Title and closing fees

• Lender’s title insurance policy, typically paid by the buyer; price depends on loan amount and title rate
• Owner’s title insurance policy may be paid by the seller in many markets, but this is negotiable
• Escrow or closing fee charged by the title company, often $300 to $1,000
• County recording fees for documents; amounts are small flat fees that vary by document type

Prepaids and escrow deposits

• First year of homeowner’s insurance, often collected at closing
• Property tax proration, which reimburses the seller for taxes they have already paid
• Initial escrow deposits to fund your lender’s escrow account, commonly 1 to 3 months of taxes and insurance
• Prepaid mortgage interest from your closing date to your first payment

Government or program-specific fees

• FHA loans include an upfront mortgage insurance premium, which is a percentage of the loan and has historically been about 1.75%. It is often financed into the loan
• VA loans include a funding fee that varies by military status, loan type, and down payment. It can be paid at closing or financed
• USDA loans include a guarantee fee that may be financed. USDA eligibility depends on the property location; addresses near Bismarck should be checked for eligibility
• Conventional loans with less than 20% down typically require private mortgage insurance, usually paid monthly

Other possible costs

• HOA transfer or move-in fees if the property is in an association
• Utility or final meter readings if required
• Courier, wire, and notary fees

Loan type differences

Your loan program can change both the size and mix of closing costs.

Conventional loans

• At 20% down or more, there is usually no PMI
• Below 20% down, PMI adds a monthly cost. Some lenders offer different PMI structures
• Origination and discount points vary by lender and credit profile

FHA loans

• Include an upfront mortgage insurance premium that is often financed into the loan
• Ongoing monthly mortgage insurance also applies
• Some borrowers may see higher lender fees based on risk

VA loans

• Include a one-time funding fee that may be financed
• Do not require PMI
• Sellers can pay certain costs and concessions within program limits

USDA loans

• Include an upfront and annual guarantee fee
• Designed for eligible areas. Bismarck is typically not rural, so you should verify eligibility by specific address

Purchase price effect

• Title insurance and some lender fees scale with loan or purchase amount
• Fixed items like appraisal, inspection, and recording fees are similar regardless of price
• In dollars, closing costs generally rise with price even if the percentage range narrows

Quick estimate steps

Use this simple framework to budget your cash to close in Bismarck:

1. Start with purchase price and your down payment to get the loan amount.
2. Estimate lender fees. A quick rule of thumb is 0.5% to 1.5% of the loan amount for origination, plus any points you choose.
3. Add third-party fees. Use midpoints: appraisal about $500, credit and processing about $400.
4. Estimate title and closing. Plan on about 0.5% to 1.0% of the purchase price for lender’s title, closing services, and related title charges. If you pay an owner’s policy, add that too.
5. Add prepaids and escrow. Budget the first year of insurance, prorated taxes, and 1 to 3 months of escrow deposits.
6. Add program fees if applicable. This includes FHA upfront mortgage insurance, VA funding fee, or USDA guarantee fee.
7. Include a $500 to $1,000 cushion for items like surveys, extra inspections, or HOA fees.

Simple examples

These ballpark ranges exclude your down payment. Your final costs will reflect your actual loan, title rates, and escrow needs.

• $250,000 purchase price: about $5,000 to $12,500 total

  • Appraisal and credit/processing: about $1,000
  • Title and closing services including lender’s title policy: about $1,250 to $2,500
  • Prepaids and escrow deposits: about $2,000 to $5,000
  • Lender origination and other fees: about $1,000 to $2,000

• $375,000 purchase price: about $7,500 to $18,750 total

• $525,000 purchase price: about $10,500 to $26,250 total

Ways to reduce costs

You can often lower or shift some of your cash to close.

• Ask for seller credits. Your purchase contract can include a seller contribution toward closing costs, subject to loan program limits
• Consider lender credits. You may accept a slightly higher interest rate in exchange for a credit that reduces upfront costs
• Finance allowable fees. Certain program fees like FHA upfront mortgage insurance or the VA funding fee can be financed
• Compare loan estimates. Different lenders quote different origination and rate-point combinations
• Verify title fees. Ask local title companies for their current rate schedules and closing fees

Use your Closing Disclosure, which must arrive at least 3 business days before closing, to confirm and understand the final numbers.

Verify local numbers

For precise figures on a Bismarck purchase, take these steps:

• Contact the Burleigh County Recorder to confirm recording fees for your documents
• Ask the Burleigh County Assessor or tax office about the property tax rate, tax schedule, and how proration will work for your closing date
• Request a Loan Estimate early from your lender, then compare it to your Closing Disclosure before signing
• Ask Bismarck title and escrow companies for sample title premiums and escrow or closing fee schedules
• Check with the North Dakota Housing Finance Agency about down payment or closing cost assistance programs you may qualify for
• If you are using FHA, VA, or USDA, confirm current program fees and how they are collected or financed

Plan your cash to close

When you have a clear picture of closing costs, you can choose the right loan, set a realistic budget, and avoid last-minute surprises. If you are early in your search, start with the 2% to 5% rule of thumb, then refine your estimate with lender quotes, title fee schedules, and tax and insurance numbers for the specific property.

If you want local, practical guidance from an agent who works across Bismarck, Mandan, and surrounding areas, reach out to Patrick Koski. You will get straightforward advice on budgeting your cash to close, negotiating credits, and timing your move with confidence.

FAQs

What are buyer closing costs versus a down payment?

• Closing costs are one-time fees and prepaids paid at settlement, while the down payment is your equity contribution toward the purchase price.

How much should a Bismarck buyer budget for closing?

• A simple rule of thumb is 2% to 5% of the purchase price, with the exact amount driven by loan type, lender pricing, title rates, and escrow needs.

Which closing costs can the seller pay in Burleigh County?

• Sellers can contribute credits toward buyer costs if the contract allows and the loan program permits; the amount depends on program limits and negotiation.

How do FHA, VA, and USDA loans change closing costs?

• FHA includes an upfront mortgage insurance premium, VA includes a funding fee, and USDA includes a guarantee fee; some fees can be financed rather than paid in cash.

What are prepaids and escrow deposits at closing?

• These are advance payments for items like homeowner’s insurance, prepaid mortgage interest, prorated property taxes, and initial escrow funds held by the lender.

Can I roll closing costs into my mortgage?

• Certain program fees can be financed and some lenders offer rate-based credits; many third-party fees and prepaids must still be paid at or before closing.

How do I get exact recording and tax figures for a Bismarck home?

• Contact the Burleigh County Recorder for recording fees, the county tax office for rates and schedules, and request a Loan Estimate and Closing Disclosure from your lender.