Closing day in Tigard should feel exciting, not confusing. If you are buying a home, the biggest question after your down payment is simple: how much cash will you need for closing costs, and what exactly are you paying for? You want clear answers you can trust, tailored to Washington County and the Tigard market. In this guide, you will learn what closing costs include, typical ranges by line item, how your loan type changes the numbers, and which local fees to expect. You will also see real-world examples so you can plan with confidence. Let’s dive in.
What closing costs include in Tigard
Closing costs are the one-time fees and prepaids you pay to finalize your home purchase. In many U.S. markets, buyers typically spend about 2% to 5% of the purchase price in closing costs. Your total depends on loan type, the property, timing of taxes and insurance, and any seller credits you negotiate.
Here is what those costs usually cover:
- Loan-related charges: lender origination, discount points if you choose to buy down your rate, appraisal, and smaller administrative items.
- Third-party inspections: general home inspection and any specialty inspections you choose.
- Title, escrow, and insurance: title search, lender’s title policy, optional owner’s title policy, and the escrow fee to handle closing.
- Recording and local fees: county recording of your deed of trust and other filings, plus any local assessments found in title.
- Prepaids and reserves: your first year of homeowner’s insurance, property tax prorations, and funds your lender collects for future tax and insurance payments.
Typical ranges for each cost category
Exact figures vary by lender, title company, and contract. These ranges help you budget early.
Loan-related costs
- Origination and processing: often 0.2% to 1.0% or more of the loan amount. Some buyers also choose discount points to lower the interest rate. Points are optional and raise cash to close.
- Appraisal: usually about $400 to $900 for a single-family home, depending on size and complexity.
- Credit report, underwriting, flood determination, wire fees: typically small flat fees in the tens to low hundreds.
Home inspections and reports
- General inspection: about $300 to $800, based on home size and scope.
- Specialty inspections: septic, sewer, radon, pest, or roof can range from about $75 to $800 each. You select what to order based on the property and your due diligence plan.
Title, escrow, and closing services
- Title search and lender’s title insurance: protects your lender and is usually a buyer cost.
- Owner’s title insurance: optional, but many buyers choose it for added protection. In Oregon, who pays is negotiable.
- Escrow or closing fee: often a few hundred dollars up to about $1,000, sometimes split between buyer and seller by agreement.
Recording and local government fees
- Recording the deed of trust and related documents: Washington County sets recording fees by schedule. Buyers commonly pay to record their loan documents. Deed recording can be negotiable in the contract.
- Oregon Real Estate Excise Tax: generally a seller obligation in Oregon. Buyers still pay their own recording and local charges as applicable.
- Local assessments or special district fees: if a property has an outstanding assessment, escrow will identify it. The contract will determine who pays.
Prepaids and reserves
- Homeowner’s insurance: you typically prepay the first year at closing.
- Property tax prorations and escrow reserves: you reimburse the seller for any taxes they prepaid for a period you will own. Your lender may also collect several months of taxes and insurance to fund future payments.
- HOA dues and transfer items: buyers often reimburse prepaid dues and may pay HOA transfer or move-in fees if applicable.
How loan type changes your closing costs
Your financing program shapes both your upfront cash and your long-term cost. Here is how the main options differ.
Conventional loans
- Plan for your down payment plus about 2% to 5% of the purchase price in closing costs.
- If you put less than 20% down, you will likely have private mortgage insurance. PMI can be monthly or structured as a single premium.
- Seller concessions are allowed within program limits and depend on your down payment. Industry practice often allows about 3% in seller-paid costs with less than 10% down, with higher limits at larger down payments. Confirm exact limits with your lender.
FHA loans
- FHA charges an upfront mortgage insurance premium. Many buyers finance this fee into the loan, which reduces cash at closing but increases the principal.
- Monthly mortgage insurance also applies.
- Seller concessions are commonly allowed up to a set percentage. Your lender will confirm the current cap and eligible items.
VA loans
- VA loans include a funding fee that varies by your service status, down payment, and first or subsequent use. Many buyers finance this fee.
- No monthly PMI. The funding fee often replaces that cost structure.
- VA rules permit certain seller concessions, within program limits.
USDA loans
- USDA loans include an upfront guarantee fee and an annual fee. These can often be financed.
- USDA loans have geographic eligibility rules. Properties in Tigard are generally not USDA-eligible, so this option is uncommon here. Check eligibility maps if you are looking outside Tigard.
Tigard and Washington County specifics to check
Recording fees and property tax timing
- Washington County sets recording fees by document type and page count. Your escrow or title company will quote exact amounts.
- Oregon property taxes follow a fiscal year schedule. At closing, taxes are prorated between buyer and seller based on the closing date. Your final Closing Disclosure will show these calculations.
City and HOA considerations
- System Development Charges typically apply to new construction or certain permits. If you are buying an existing home, SDCs usually do not apply at purchase.
- Many Tigard neighborhoods include HOAs. Ask early about monthly dues, special assessments, required disclosure packages, and any transfer or move-in fees.
- If a property shows unpermitted work in disclosures or title, your agent and escrow will help you understand the impact on timing and cost.
Who typically pays what in Oregon
- There is no statewide rule that fixes who pays each closing cost. Your purchase contract and local custom guide the split.
- In Oregon, the state’s real estate excise tax is generally a seller cost. Buyers usually pay their loan-related charges, inspections, and recording of the deed of trust. Deed recording can be negotiable. Confirm the exact split with your agent and escrow.
Real-world Tigard cost examples
Use these examples to set a planning range. Your actual costs will depend on your lender, the title company’s rate schedule, your program type, and any seller credits.
Example A: Purchase price $450,000
- Total buyer closing costs at 2% to 5%: about $9,000 to $22,500.
- Sample line items:
- Lender fees and any points: about $2,250 to $6,750.
- Appraisal: about $450 to $700.
- Title search and lender’s policy: about $1,200 to $2,400.
- Escrow/closing fee: about $400 to $1,000 (may be split).
- Recording and filings: about $50 to $300 depending on documents.
- Prepaid insurance, tax prorations, and escrow reserves: about $1,000 to $3,500.
- Inspections and HOA transfer items: about $300 to $1,000 or more.
Example B: Purchase price $700,000
- Total buyer closing costs at 2% to 5%: about $14,000 to $35,000.
- Larger loan sizes increase lender’s title insurance and some lender fees. Other items scale with price or timing, like prepaid taxes and insurance.
Practical note: Financing program fees, such as FHA’s upfront mortgage insurance or the VA funding fee, can lower your cash due at closing but will increase your loan balance and monthly payment.
Ways to manage or reduce closing costs
- Shop lenders: request Loan Estimates from at least two to three lenders. Compare rate, points, and the total closing cost line.
- Negotiate credits: ask the seller for concessions to cover some closing costs. Your agent will guide this strategy based on market conditions.
- Consider lender credits: a slightly higher rate can generate a credit that offsets part of your closing costs. This trades upfront cash for a higher monthly payment.
- Finance allowed fees: some program-specific fees can be rolled into the loan if permitted.
- Be selective with optional items: for example, owner’s title insurance is optional but valuable. Discuss pros and cons with your agent before waiving anything.
Timeline and disclosures to expect
- Loan Estimate: once you apply, your lender must provide a Loan Estimate within three business days. It outlines your projected closing costs and monthly payment.
- Closing Disclosure: your lender must deliver the Closing Disclosure at least three business days before closing. This document shows the final numbers and who pays each item.
- Title commitment: you will receive a title commitment outlining coverage and exceptions. Review it and ask questions about any liens, easements, or assessments.
- Escrow instructions and prorations: confirm HOA payoffs, tax prorations, and any credits so your cash to close is accurate.
Questions to ask your lender
- What are my total estimated closing costs and monthly payment on the Loan Estimate?
- What upfront program fees apply, and can they be financed?
- If I put down 3%, 5%, or 10%, what seller concessions are allowed and how would that change my cash to close?
- What are my PMI choices and the tradeoffs between monthly and single-premium options?
- How long is my rate lock, and do you offer a float-down option?
- Can you show best-case and worst-case closing cost scenarios?
Questions to ask your agent and escrow team in Tigard
- Based on our contract, which closing costs am I responsible for, and which might the seller cover by local custom?
- What are the current Washington County recording fees for my documents?
- Are there any local assessments, HOA transfer fees, or special district charges on this property?
- Which title and escrow company will close the transaction, and when will I receive the title commitment and draft settlement statement?
- How will taxes be prorated for my closing date, and how many months of reserves will the lender collect?
Next steps
If you are planning a purchase in Tigard, start by getting a clear budget that includes down payment, closing costs, and a cushion for inspections and prepaids. Ask for a written Loan Estimate, review a draft fee quote from escrow, and confirm how credits and prorations will appear on your Closing Disclosure. With the right plan, you will head to the signing table confident and prepared.
When you want a calm, concierge process from offer to closing, we are here to help. Connect with the team at Evoke Property Partners for a tailored strategy and a clear, line-by-line path to the finish.
FAQs
How much cash do Tigard buyers usually need at closing?
- Plan for your down payment plus about 2% to 5% of the purchase price for closing costs, depending on loan type, timing, and any seller credits.
Who pays title insurance and escrow fees in Oregon purchases?
- Buyers typically pay the lender’s title policy and often share or pay the escrow fee; the optional owner’s title policy is negotiable and depends on your contract.
Do Oregon buyers pay a transfer or excise tax at closing?
- Oregon’s real estate excise tax is generally a seller obligation; buyers still pay recording fees and any local charges confirmed by escrow.
When will I receive my final closing numbers before signing?
- Your lender must provide the Closing Disclosure at least three business days before closing so you can review the final charges and cash to close.
Can I roll some closing costs into my mortgage in Tigard?
- Certain fees can be financed, such as program-specific charges, if your loan program allows it. Ask your lender which costs you can finance and the impact on your payment.
