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, Wisconsin 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 Wisconsin 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, Wisconsin closing costs—at around $2000 –are almost the lowest in the nation. 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 Wisconsin

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

Except for Milwaukee, where attorneys conduct the closings, lenders and title companies conduct what are called “table closings.” Buyers generally pay closing costs and the lender’s policy fees; while sellers pay the owner’s policy fees and transfer taxes. If your transaction involves a homestead and you are married, be aware that your transaction may be voided if not joined into by your spouse. Property taxes may be paid in full on February 28, or they can be paid in half-installments on January 31st and July 31st. When you close and how you plan on paying your property taxes will determine how much is needed for escrow.

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 Wisconsin. Don’t let unexpected closing costs ruin what can be a gratifying and rewarding experience—buying your home.