Closing Costs in Minnesota

The average closing cost in Minnesota is $12,802, which is 3.57% of the home price. Minnesota's transfer tax rate is 0.33%.

Avg Closing Costs

$12,802

As % of Price

3.57%

Transfer Tax

0.33%

Attorney Required

Closing Cost Breakdown for a $358,473 Home

Item	Estimated Cost
Loan Origination Fee (1%)	$2,868
Appraisal Fee	$500
Credit Report	$50
Title Search & Insurance	$1,792
Transfer Tax	$1,183
Recording Fees	$150
Home Inspection	$400
Survey	$350
Attorney Fee (optional)	N/A
Prepaid Property Tax (2 months)	$591
Prepaid Homeowners Insurance (1 year)	$1,075
Prepaid Interest (15 days)	$766
Estimated Total	$9,725

* Estimates based on average Minnesota home price of $358,473 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.

How to Reduce Closing Costs in Minnesota

Negotiate Seller Concessions

Ask the seller to cover part of your closing costs. In Minnesota, sellers can typically contribute up to 3-6% of the sale price toward buyer closing costs.

Shop Multiple Lenders

Origination fees and lender charges vary significantly. Get Loan Estimates from at least 3 lenders and compare the “Loan Costs” section.

Use First-Time Buyer Programs

Minnesota offers programs like Minnesota Housing Start Up Program that can help with closing costs.

Close at End of Month

Closing near the end of the month reduces the prepaid interest charges, which can save you hundreds of dollars.

Legal Context for Minnesota Closings

Conveyance Document

Warranty, limited-warranty, quitclaim, trustee's and personal-representative's deeds (other deeds possible)

Security Instrument

Mortgage

Foreclosure Process

Non-Judicial

Attorney Required

Minnesota uses warranty, limited-warranty, quitclaim, trustee's and personal-representative's deeds (other deeds possible) for property transfers and mortgage as the security instrument. While an attorney is not required, you may still choose to hire one.