Somewhere in your home purchase, you'll run into the term "closing costs." These are the fees that make the sale official, separate from the price you agreed to pay the seller, and they cover all the people and moving parts that get you to the closing table. In Utah County, plan on them running about 2 to 5% of the home's price. On a $500,000 home, that's roughly $10,000 to $25,000, so it's worth knowing about early, not the week before you close.
Here's the plain-English version: what's in them, the prepaid items people forget to budget for, how to get someone else to cover part of them, and what all of this means in a new-construction market like Saratoga Springs and Eagle Mountain.
What's Included in Closing Costs
A lot of hands touch a home purchase, and most of these fees pay the people who protect you along the way. The common ones:
- Credit report. Lenders pay a fee to pull the mortgage-specific version of your credit.
- Appraisal. An appraiser confirms the home isn't priced above its true market value, which protects you and your lender.
- Home inspection. Your inspector flags costly problems before you own them, and what they find can become a negotiation point on price.
- Pest inspection. Pests can quietly destroy a home, so this one checks that your investment is sound.
- Survey. Confirms the property lines on a single-family home.
- Origination and underwriting fees. Charged by your lender to set up and approve your financing.
- Discount points. Optional. You can pay points up front to buy down your interest rate and lower your monthly payment. It's worth running the math with your lender on whether it pays off for how long you plan to stay.
- Recording fees. The cost to record your deed in public records.
- Title work and title insurance. The title company checks the home's ownership history, and title insurance protects your ownership rights going forward. In Utah, the title and escrow company handles a big part of the closing.
Prepaids and Prorations: The Part People Forget
Beyond those service fees, closing involves money set aside for what you'll owe as the new owner. These catch buyers off guard because they aren't really "fees," they're costs paid ahead of time or split with the seller.
- Property tax prorations. Property taxes get divided between you and the seller based on your closing date. The seller covers the part of the year they owned the home, and you cover your share from closing forward.
- Prepaid property taxes. Depending on timing, you may pay some taxes up front into an escrow account so the bill is covered when it comes due.
- Escrow reserves (impounds). If you have an escrow account, your lender collects a few months of property taxes and homeowners insurance up front so those bills are always paid on time.
- Prepaid homeowners insurance. You typically pay your first full year of insurance at or before closing.
- Prepaid interest. The interest from your closing day to the end of that month. This is the piece that makes closing later in the month cheaper up front.
HOA Costs, If Your Home Has One
A lot of Utah County communities, especially the newer ones in Saratoga Springs and Eagle Mountain, have a homeowners association. If yours does, budget for a few HOA items at closing:
- Prorated HOA dues. Like taxes, your dues get split with the seller based on the closing date.
- HOA dues paid in advance. Some associations collect the upcoming month or quarter up front, so you may prepay a period of dues at closing.
- HOA transfer or setup fee. The association or its management company usually charges a fee to move the account into your name.
- Capital contribution or reserve fee. Some HOAs collect a one-time contribution to their reserve fund from every new owner.
These vary a lot by community, so ask for the HOA's fee schedule early. Your title company and the HOA can give you the exact numbers before you're at the table.
Home Warranty
A home warranty is an optional policy that covers repair or replacement of major systems and appliances, the furnace, water heater, AC, and the like, for a set period after closing, usually the first year. Buyers often ask the seller to pay for it as part of the deal. On a resale home it's a small cost that can buy real peace of mind in year one. On new construction you usually already have the builder's warranty, so it's less necessary there.
How to Lower Your Closing Costs
You have real room to work with here. A few levers:
Roll some costs into your loan. Depending on your loan program, certain costs can be financed into the mortgage so you spread them out instead of paying everything up front. Your lender can tell you what's allowed.
Close near the end of the month. You prepay interest from your closing day to the end of the month, so closing later means less prepaid interest out of pocket.
Compare lenders. Origination fees and rates vary between lenders. Looking at a couple of Loan Estimates side by side can save real money, and shopping in a short window doesn't hurt your credit.
And the big one: ask the seller to help pay. That's worth its own section.
Can You Ask the Seller to Pay Your Closing Costs?
Yes, and it's a genuinely useful tool for a buyer. It's called a seller concession, or seller-paid closing costs. You write it into your offer, asking the seller to credit you a set dollar amount or percentage toward your closing costs and prepaids. If they accept, that money comes off what you have to bring to closing.
When does it work? When a buyer has negotiating room. That's more likely on a home that's been sitting, in a softer market, or, as we'll get to, with new construction. In a heated multiple-offer situation, asking for concessions can weaken your offer, so it's a strategy to use with your agent's read on the specific home.
How much can a seller contribute? It depends on your loan, and there are caps. As a general guide:
- FHA loans: up to 6% of the price toward your costs.
- VA loans: up to 4% in seller concessions.
- Conventional loans: scaled to your down payment, often around 3% with less than 10% down, and more as your down payment grows.
- USDA loans: up to 6%.
These limits change with loan rules, so confirm your exact number with your lender before you write the offer. One catch worth knowing: a concession can only go toward real costs, it can't put cash in your pocket, so what your actual costs are sets the ceiling.
What About a Rate Buydown?
A rate buydown uses money at closing to lower your interest rate, which lowers your monthly payment. There are two kinds:
- Permanent buydown (discount points). You, the seller, or a builder pays points up front to lower your rate for the life of the loan.
- Temporary buydown, like a 2-1 buydown. Your rate is reduced for the first year or two, then steps up to the full rate. The cost of that discount is paid up front, often by the seller or the builder.
A buydown can make your payment easier to handle, especially early on. Just be sure you understand what happens when a temporary buydown ends, and run the numbers on whether points make sense for how long you plan to stay.
New Construction Changes the Math in Saratoga Springs and Eagle Mountain
Here's where it gets local. New construction is a huge share of the market in Saratoga Springs and Eagle Mountain, and builders are competing hard for buyers. To move inventory, many are offering to cover closing costs, pay for a rate buydown, or both, as incentives.
That shapes the whole negotiation, on new builds and resale homes alike.
If you're buying: you're in a strong spot to ask. Whether you're looking at a builder or a resale home, it's worth asking the seller to cover closing costs or help buy down your rate. Buyers are asking for this more and more, sometimes for all of their closing costs, and in a market with this much builder competition, sellers are listening.
If you're selling a resale home: know what you're up against. When a builder down the street is offering to pay a buyer's closing costs and buy down their rate, a buyer may expect the same from you. Factor that into your pricing and your bottom line before you list, so a concession request doesn't catch you off guard. Sometimes offering a concession up front is exactly what makes your home compete.
When You'll Know Your Exact Numbers
Don't guess, and don't trust a round number off the internet for your specific deal. Within three business days of applying for your loan, your lender gives you a Loan Estimate that lays out your costs. Right before closing, you get a Closing Disclosure with the final figures. Compare those two documents and ask about anything that moved. Those are your real numbers, not a blog's estimate.
If you want help reading your Loan Estimate, or figuring out where there's room to negotiate, that's exactly the kind of thing I walk buyers through. My job isn't to tell you what to do, it's to help you understand your options.
Frequently Asked Questions
How much are closing costs in Utah County? Usually 2 to 5% of the home's price for buyers. On a $500,000 home, that's roughly $10,000 to $25,000. Your exact number depends on your loan, the home, and whether it has an HOA, and your lender's Loan Estimate will spell it out.
What are prepaids? Prepaids are costs you pay ahead of time as the new owner, like your first year of homeowners insurance, prorated and prepaid property taxes, prepaid interest, and a few months of taxes and insurance held in an escrow account. They're separate from the service fees like appraisal and title.
Do I pay HOA fees at closing? If the home is in an HOA, usually yes. You may pay prorated dues, dues in advance, a transfer or setup fee, and sometimes a one-time reserve contribution. Ask for the HOA fee schedule early so nothing surprises you.
Can the seller pay my closing costs? Often, yes. Seller-paid closing costs (seller concessions) are a common negotiation, especially on a home that's been sitting or when the market gives buyers room. How much is allowed depends on your loan type, so check with your lender.
Can I ask the seller to pay all of my closing costs? You can ask, and in a market with heavy new-construction competition like Saratoga Springs and Eagle Mountain, it's increasingly common. Whether it works depends on your loan's concession cap and how much negotiating room the specific deal gives you. Builders are already offering this, which makes resale sellers more open to it too.
What is a rate buydown? Paying money up front to lower your interest rate. A permanent buydown (points) lowers it for the life of the loan. A temporary buydown, like a 2-1, lowers it for the first year or two before it steps back up. Sellers and builders sometimes pay for these as an incentive.
Are closing costs included in my down payment? No. They're separate. Your down payment goes toward the price of the home, and closing costs and prepaids are on top of it. Budget for both.
When do I find out my exact closing costs? Your Loan Estimate arrives within three business days of your loan application, and your final Closing Disclosure comes shortly before closing.
Related reading:
- How to Buy Your First Home in Utah County in 2026
- Is a Rate Buydown Worth It in Utah County?
- Competing With New Construction: How to Sell Your Existing Home
- New FHA Rules 2026: What They Mean for Utah County Buyers
- Utah Down Payment Assistance and Grants (SB240)
Written by Kat Ashby, Principal Broker and Realtor® at RootQuest Realty LLC in Saratoga Springs, Utah. Kat holds a Utah Division of Real Estate Principal Broker license (Credential #10382396-PB00). She has been actively selling in Utah County since 2020, specializing in buyer and seller representation, new construction, and corporate relocation through Altair Global. She is fluent in English and Portuguese, earned her bachelor's degree in Psychology from Brigham Young University, and lives in the community she sells in.