What's in it

Closing costs fall into three buckets. Lender fees are origination or underwriting fees, plus any points you choose to pay for a lower rate. Third-party costs are the appraisal, your lender's title insurance policy, half of the title company's settlement fee, and recording fees. And prepaids are interest from closing to the end of that month, your first year of homeowners insurance, and a starting balance in your escrow account for property taxes and insurance.

Prepaids are a big reason the number feels higher than expected. They aren't really fees. They're bills you'd be paying anyway, just paid up front. (Related: why your first mortgage payment skips a month.)

What's not in it

Your down payment is separate. Your earnest money isn't an extra cost either, it gets credited toward what you owe at closing. And your home inspection is usually paid directly to the inspector during due diligence, so it won't show up as a closing cost, but I'd still budget for it.

How to bring it down

Ask the seller. In a slower market, sellers are often willing to cover part of a buyer's closing costs, sometimes instead of a price reduction. It's one of the most common requests I'm seeing in offers right now.

Compare lenders, too. Every lender has to give you a Loan Estimate within three business days of applying, and you can compare the fees line by line. Lender credits can also lower your cash to close in exchange for a slightly higher rate.

Example only: on a $500,000 purchase, closing costs around 2.3% would be about $11,500. If the seller agrees to $8,000 toward your closing costs, you'd bring roughly $3,500 for them at closing, plus your down payment.

What I'd actually recommend

Get pre-approved early, and ask your loan officer for an estimate of your total cash to close, not just your down payment. You can also estimate your monthly payment here. Then we can decide whether asking the seller for help makes your offer stronger or weaker on a specific home. Sometimes it's the smartest ask in the offer. Sometimes a cleaner offer wins.

Quick answers

How much are closing costs for a buyer in Utah?

Roughly 2% to 3% of the purchase price is a reasonable planning range. Rocket Mortgage put the Utah average around 2.27% in February 2026, but your loan type and lender matter a lot.

Can the seller pay my closing costs in Utah?

Yes, if it's negotiated in your offer. Seller-paid closing costs are common in a slower market, within the limits your loan program allows.

Is earnest money part of closing costs?

No. Earnest money is a deposit that gets credited toward your down payment and closing costs at closing, so it isn't an extra cost.

Sources: Rocket Mortgage: Average closing costs in Utah (Feb. 2026) · Stewart Title: Utah real estate practices

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