With the housing market varying so much across the country, many people assume that mortgage interest rates vary greatly from state-to-state as well. While there may be slight variations in mortgage interest rates, they are generally the same. Consequently, Missouri mortgage rates are as competitive as those in any other state.

There can be, however, significant differences in closing costs and procedures across the nation. So, when you apply for your mortgage, don’t forget to factor in closing costs or your hard work to find a competitive Missouri mortgage rate may be tempered by unforeseen closing costs.

What Closing Is

Before you try to discern the differences in closing costs, you must first understand what “closing” is. Closing is the final step before you take ownership of your home. During the closing, you will sign mortgage loan documents, transfer funds (escrow, insurance, etc…), and receive the deed to your property.

Closing Costs

Because of different closing procedures and low title insurance costs, Missouri closing costs—at around $2600 –sit right at the national average. Typically, closing costs cover the following items:
o Lender Fee
o Title Insurance
o Title Search Fee
o State Mortgage Taxes
o Settlement Charge
o Escrow
o Settlement or Closing Fee
o Attorney’s Fee
o Flood Insurance Fee
o Home Warranty Fee
o Home Inspection Fee
o Survey Fee
o Notary Fee
o Recording Fee
o Interest
o Lender Fees/Charges

Closing in Missouri

Closing procedures vary as much as closing costs. Whether you are a first-time homeowner—or a newcomer to Missouri, knowing what to expect at closing will make the process much easier and less stressful.

In Missouri, title companies, lenders, real estate agents, and attorneys may conduct closings. In St. Louis, title company closings are the norm. However, an escrow or title company generally conducts closings in the Kansas City area. Buyers and sellers typically split closing costs. In Western Missouri, sellers usually pay for title insurance policies, while buyers pay in other areas of the state. Missouri has no documentary, mortgage, or transfer taxes, so don ‘t expect to pay any at closing.

No matter what state you buy your home in, having a general idea of the closing costs and procedures specific to your area will ensure that you are well prepared for the final step in purchasing your home. Remember, you spent a great deal of time finding the best mortgage rates in Missouri. Don’t let unexpected closing costs ruin what can be a gratifying and rewarding experience—buying your home.