Closing Costs in North Dakota
The average closing cost in North Dakota is $12,307, which is 4.25% of the home price. North Dakota has no transfer tax, which saves buyers money.
Avg Closing Costs
$12,307
As % of Price
4.25%
Transfer Tax
None
Attorney Required
Yes
Closing Cost Breakdown for a $289,622 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $2,317 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $1,448 |
| Transfer Tax | N/A |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $454 |
| Prepaid Homeowners Insurance (1 year) | $869 |
| Prepaid Interest (15 days) | $619 |
| Estimated Total | $8,357 |
* Estimates based on average North Dakota home price of $289,622 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in North Dakota
Negotiate Seller Concessions
Ask the seller to cover part of your closing costs. In North Dakota, 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
North Dakota offers programs like NDHFA FirstHome 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 North Dakota Closings
Conveyance Document
Warranty deed
Security Instrument
Mortgage; deed of trust sometimes used
Foreclosure Process
Judicial
Attorney Required
Yes
North Dakota uses warranty deed for property transfers and mortgage; deed of trust sometimes used as the security instrument. An attorney is required at closing, which adds to your closing costs.
