You successfully negotiated an affordable price for a Nebraska home and are ready for closing. But are you really ready? It’s important to know how much cash you have to bring to the table. For the final tabulation in determining the cost of your new house, you subtracted the down payment. But did you remember to add closing costs? As much as buyers would like to, there’s no forgetting them. So, how much are closing costs in Nebraska? We’ll dig into the numbers with the help of Joanne McCoy, a top Lincoln, Nebraska, real estate agent with 17 years of experience. Closing costs are the fees related to buying a house and are due on the official date of purchase, also known as closing. Some of these costs, such as property taxes and insurance, are related to homeownership in general. Others, such as origination fees, are directly related to obtaining a mortgage. Richie Helali, a licensed, senior mortgage advisor at HomeLight Home Loans, says that closing costs are most often paid through wire transfer or certified check, along with the down payment on your home loan (which is not part of the closing costs but is typically due at the same time). If the total amount of your closing costs plus your down payment is financially overwhelming, sometimes lenders will allow you to add the closing costs into the total amount of your loan, thus reducing the amount of cash needed at closing. This carries certain implications, however, if the house doesn’t appraise for the increased amount. We’ll provide some example closing costs in a minute to illustrate how this all plays out. When a house is sold, there are numerous associated costs and fees, which are divvied up between seller and buyer accordingly. These percentages are an average, but buyers and sellers can always negotiate to determine who pays specific closing costs. Common negotiated fees include title fees, home warranty, and settlement fees. McCoy explains that property taxes are not negotiable, but what the buyer pays depends on how the county collects. For example, in Lancaster County, property taxes are collected in arrears. “When homeowners sell their house, they’re obligated to bring the taxes current up to the closing date,” she says. That effectively acts as a credit to the buyer and reduces the amount the buyer needs to bring to closing. Sellers may opt to offer credits or concessions in lieu of a lower price. When offered credits or concessions, buyers should keep in mind that some lenders limit the “contributions” a seller is allowed to make. A motivated seller might consider covering part or all of the closing costs for a buyer in order to help close the deal, but in a seller’s market, when inventory is low, that’s unlikely. So, just how much are closing costs in Nebraska? Let’s break it down. This table illustrates the closing costs typical Nebraska buyers will need to pay based on a $265,000 home transaction. *Example estimate based on a $265,000 median-priced Nebraska home purchase. An attorney is not required for real estate sales in Nebraska. In McCoy’s experience, neither the buyer nor the seller in most of his transactions will use one. Pre-paid points became a bigger issue when the interest rates went up, McCoy says. “You can pay any amount [of pre-paid points].” But is it worth it? Paying just 1% on a $265,000 home adds $2,650 at closing, but only drops the interest rate slightly. Any wire transfer fees incurred are the responsibility of the buyer. Buyers and sellers split some fees: Nebraska home sellers are required to pay a transfer tax (aka, state documentary stamp tax) at the rate of $2.25 for every $1,000 of the sales price. Let’s take a look at an example of how this tax and other costs might look for a typical home seller based on the sale of a $265,000 home. *Example estimate based on 8%-10% of a $265,000 median-priced home sale. Although it’s not technically a closing cost, many sellers must pay off their mortgage balance, so that amount should be added to the calculation. The average outstanding mortgage balance for Nebraska homeowners is around $140,000. A quick reference of some sample estimated closing costs for Nebraska buyers could look like this: Nebraska buyers can get a rough or preliminary estimate by using free online tools such as HomeLight’s Closing Costs Calculator. Other handy tools from HomeLight include our Home Affordability Calculator and Down Payment Calculator. These tools provide some initial information to get you started, but the best way to determine what your closing costs will be in Nebraska is to partner with a top real estate agent or mortgage advisor. According to ClosingCorp’s latest Purchase Mortgage Closing Cost Report, closing costs in Nebraska rank among the lowest in the nation at an average of just $2,210. However, you may still be able to reduce some costs if you team up with a savvy real estate agent who is well informed about local market conditions and will look out for your best interests. In addition to negotiating fees with the seller or asking for credits and concessions, some ways you can lower your closing costs include: Closing at the end of the month can also save some money. “You pay interest per day,” McCoy explains. By waiting until the end of the month, you’re paying on fewer days. Another way of lowering closing costs is to pay with cash. “You can skip a lot of fees if you pay in cash.” HomeLight can connect you with some of the most experienced buyer’s agents in Nebraska. Simply answer a few questions, and our Agent Match platform will analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. Here are answers to some common questions to help you navigate what you might be expected to pay at closing in Nebraska: When are closing costs paid in Nebraska? Closing costs are paid at closing — when you finalize the sale. If the buyer offered any earnest money, it’s due at the time the offer is made. “Some lenders want the appraisal fee up front,” McCoy points out. The same goes for home inspectors, although she says most contractor fees won’t be due until closing. Can I add closing costs to my home financing? Yes, but adding these fees to your mortgage increases your monthly payments, with interest added. Will I need to pay private mortgage insurance (PMI) in Nebraska? If your down payment is less than 20% of the home’s cost, you’ll typically have to add PMI to your monthly payments, McCoy advises. It’s usually calculated between 0.58% and 1.86% of the home’s final sale price. Will a builder pay closing costs on a new construction home in Nebraska? It depends on the builder. Due to warranties and other fees, new home closing costs can be higher, but some builders offer a 2%-3% reduction in closing costs as an incentive. There’s no escaping closing costs, but some are split with the seller (like title fees), some can be negotiated (like credits and concessions), some are optional (like pre-paid points), and some aren’t a concern for Nebraska buyers (like attorney fees). It’s important to know how much money you’ll need to bring to closing. Ultimately, McCoy says closing costs for buyers average about $5,000 in Nebraska. Partner with a top buyer’s agent in Nebraska who can guide you in navigating what costs to expect and how to reduce the final amount you’ll pay at closing. If you don’t have an agent, HomeLight can connect you with an experienced top-performing agent familiar with your area. Header Image Source: (John Matychuk / Unsplash)
What are closing costs?
Who pays for closing costs in Nebraska?
How much are closing costs in Nebraska?
Buyer closing costs in Nebraska
Closing cost item
Typical cost to buyer
Appraisal fee
$500-$550
Loan origination fees
$1,000-$1,500
Credit report
$15-$43
Home inspection
$300-$500
Wood Destroying Organism inspection
$65-$100
Survey fees (Lender may require)
$400-$500
Recording fees
$15
Title endorsement
$125
Broker compensation/administrative fee
$395-$995
Typical buyer closing cost total
$2,815 to $4,328 (1.06%-1.63%)
Seller closing costs in Nebraska
Closing cost item
Typical cost to seller
Property taxes (collected in arrears)
$1,000-$3,000 (Varies by sale date)
Real estate commission
$14,999 (Calculated at 5.66%)
Transfer taxes (or documentary stamp)
$596
Escrow
$247
Broker compensation/administrative fee
$395-$995
Outstanding amounts: utilities, HOA fees, etc.
Varies
Concessions, if granted
Varies
Typical seller closing cost total
$21,200-$26,500
How can I estimate my closing costs in Nebraska?
Home price
1% closing costs
2% closing costs
3% closing costs
$250,000
$2,500
$5,000
$7,500
$300,000
$3,000
$6,000
$9,000
$350,000
$3,500
$7,000
$10,500
$400,000
$4,000
$8,000
$12,000
$450,000
$4,500
$9,000
$13,500
$500,000
$5,000
$10,000
$15,000
$550,000
$5,500
$11,000
$16,500
$600,000
$6,000
$12,000
$18,000
How can I lower my closing costs in Nebraska?
How can I find a top real estate agent in Nebraska?
Additional expert insights about closing costs in Nebraska
Conclusion: Nebraska’s need-to-know facts about closing costs
