Buying a home in Highland Park and wondering how much you should budget beyond your down payment? You are not alone. Closing costs in Minnesota include several moving parts, and the totals can vary by loan type, lender, and Ramsey County fees. In this guide, you will learn what typical buyer costs look like in the Twin Cities, how each fee works, and smart ways to plan and save. Let’s dive in.
What closing costs cover
A quick baseline
For most Twin Cities buyers, a helpful planning range is to budget 2 to 5 percent of the purchase price for closing costs, not including your down payment. The exact number depends on your loan, lender pricing, title and recording fees, and prepaid items like taxes and insurance. Use this as a starting point and confirm with your lender.
When you get exact numbers
After you apply for your mortgage, your lender must provide a Loan Estimate within three business days. This shows estimated fees and prepaids so you can compare options. At least three business days before closing, you will receive a Closing Disclosure with your final numbers. Review these line by line and ask questions about anything that changed.
Loan fees you can expect
- Origination, processing, and underwriting: Charged by the lender to create and process your loan. These can be a flat fee or a percentage of the loan amount.
- Points or discount points: Optional prepaid interest to lower your rate. If you choose points, you pay them at closing.
- Application and credit report: Often modest and sometimes collected up front or reflected at closing.
These fees are typically paid by the buyer and can be negotiable or offset with lender credits.
Third-party services you choose
- Appraisal: Required by most lenders to confirm value. Often ordered early in the process.
- Home inspection and tests: Common for Highland Park’s older housing stock. Many buyers add radon testing, and some add pest or sewer line inspections.
- Survey or specialized inspections: Needed in some cases based on property type and lender requirements.
You typically pay these directly and they can occur before closing, so budget for them early.
Title and escrow in St. Paul
- Lender’s title insurance: Protects the lender and is usually required. Buyers typically pay this.
- Owner’s title insurance: Optional but strongly recommended to protect your ownership. In Minnesota, who pays can vary by local custom and negotiation. Confirm current practice with your title company and agent.
- Closing or escrow fee: Charged by the title company to handle settlement and disburse funds. This may be split or assigned by contract.
Customs vary by deal. Decide who pays for the owner’s policy and closing fee early in the purchase agreement.
Government charges in Ramsey County
- Recording fees: Fixed amounts charged to record the deed and mortgage. Ramsey County sets these per document, so they are predictable once verified.
- Deed and mortgage-related taxes: Minnesota collects taxes related to deed transfers and mortgage registration. Rates and exemptions can change, and who pays is often negotiated.
- Local transfer fees: Some municipalities have small additional charges. Confirm with city and county sources during your title review.
Always verify current rates and payer conventions with the Minnesota Department of Revenue, the Ramsey County Recorder, your title company, and your lender.
Prepaids and escrow deposits
- Prepaid interest: Covers interest from the day you close until your first payment date.
- Homeowners insurance: Lenders often require the first year’s premium paid at closing, plus an initial escrow deposit.
- Property taxes: Prorated based on the closing date using Ramsey County’s tax calendar. You may reimburse the seller for taxes already paid, or receive a credit if due dates align the other way.
- Initial escrow (impound) deposit: Many lenders collect 2 to 6 months of taxes and insurance to seed your escrow account. This is often one of the largest single line items at closing.
Special loan program costs
- FHA: Upfront mortgage insurance premium may be paid at closing or financed into the loan; monthly MI also applies.
- VA: A funding fee applies and can often be financed.
- USDA: A guarantee fee or upfront fee applies.
- Conventional with PMI: If you put less than 20 percent down, monthly PMI usually applies. Some programs include initial PMI-related charges.
Your lender will explain which of these apply to your loan.
Highland Park considerations
Highland Park features many older and well-established homes. Buyers commonly order radon testing and may consider inspections for lead-based paint on very old homes, sump systems, and potential deferred maintenance. For homes in a homeowners association or condo building, expect document and transfer fees and order resale documents early. If a property is in a floodplain or shoreland area, factor potential flood insurance into your budget.
How to plan your closing
- Apply early and collect a Loan Estimate from at least two lenders for comparison.
- During underwriting, expect invoices for appraisal, title, and other third-party services.
- At least three business days before closing, review your Closing Disclosure in detail.
- Decide who pays for owner’s title insurance and the closing fee in your purchase agreement.
- Ask your lender to estimate your initial escrow deposit and any prepaid taxes and insurance.
Ways to reduce costs
- Shop lenders: Compare Loan Estimates, including the tradeoff between rate and points.
- Request seller concessions: Negotiate a seller credit toward closing costs, subject to loan program limits.
- Lender credits: Ask about a small rate increase in exchange for credits that offset fees.
- Roll eligible costs into the loan: Understand how this affects loan-to-value, payment, and approval.
- Title and settlement: If your contract allows, compare fee quotes from different title companies.
Examples: what it might cost
These are illustrative scenarios to help you visualize the mix of fees. Always rely on your actual Loan Estimate and title quote.
Scenario A: Purchase price $300,000
- Estimated closing costs around 2.5 percent: about $7,500
- Prepaids and escrow: about $3,000
- Lender and third-party fees: about $1,500
- Title and recording: about $1,000
- Inspections and misc.: about $500 to $1,000
Scenario B: Purchase price $600,000
- Estimated closing costs around 3.0 percent: about $18,000
- Higher title premiums and escrow deposits mean bigger absolute dollars, even if the percentage is similar
Buyer checklist
- Request Loan Estimates from at least two lenders; compare total costs and APR.
- Ask your title company for a buyer and seller estimate showing who pays what.
- Verify Ramsey County recording fees and any deed or mortgage taxes that apply.
- Budget for inspections, including radon, and potential mitigation for older homes.
- Decide who pays for the owner’s title policy and closing fee in your offer.
- Confirm initial escrow deposits for taxes and insurance with your lender.
- Review your Closing Disclosure at least three business days before closing and bring valid ID to closing.
Buying in Highland Park should feel exciting, not confusing. With a clear plan, you can budget confidently, negotiate smartly, and avoid day-of-closing surprises. If you would like a tailored estimate for a specific Saint Paul property, I am happy to walk through your numbers and options.
Ready to move forward with clarity? Let’s connect — start the conversation with Natasha Cejudo.
FAQs
Who typically pays the owner’s title policy in St. Paul?
- Practices vary in Minnesota and can be negotiated. Ask your title company and agent what is customary for your price point and property type.
What is the usual range for Minnesota buyer closing costs?
- A helpful planning range is 2 to 5 percent of the purchase price, excluding your down payment. Your Loan Estimate will show your specific numbers.
When will I see my exact closing costs before closing day?
- Your lender must send a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing.
Can I roll closing costs into my mortgage in Minnesota?
- Many fees can be financed, but not all. This raises your loan amount and monthly payment, so review the tradeoffs with your lender.
Can the seller pay some of my closing costs in Highland Park?
- Yes, seller concessions can be negotiated in your purchase agreement. Your loan program will set limits on how much the seller can contribute.
Why are escrow deposits so large at closing in Ramsey County?
- Lenders often collect 2 to 6 months of property taxes and insurance up front to seed your escrow account, which can be one of the biggest line items at closing.
