Wondering what you’ll really pay to close on a home in Manhattan, Montana? You’re not alone. Closing costs can feel confusing when you’re trying to budget for a move and a mortgage at the same time. In this guide, you’ll learn what buyer closing costs typically include, where the money goes, what is common in Gallatin County, and how to plan with confidence. Let’s dive in.
What closing costs include in Montana
Closing costs are the third-party fees and prepaid items you pay at settlement, separate from your down payment. They cover things like lender charges, title and escrow services, county recording, inspections, and prepaid taxes and insurance. As a planning estimate, buyers often see totals around 2% to 5% of the purchase price. Your exact number depends on your loan type, home price, and specific property needs.
You’ll get a Loan Estimate within three business days after you apply for a mortgage. It outlines expected lender fees. At least three business days before closing, you’ll receive a final Closing Disclosure that lists your actual costs.
Buyer cost breakdown
Loan costs
- Loan origination or processing: commonly 0.25% to 1.0% of the loan amount (often negotiable).
- Underwriting or application: about $400 to $1,000.
- Appraisal: typically $300 to $800.
- Credit report: usually $25 to $50.
- Discount points (optional): 1 point equals 1% of the loan amount to reduce your rate.
- Program-specific fees: FHA, VA, or other programs may include additional upfront charges.
Title and escrow
- Lender’s title insurance: required by most lenders, varies with loan amount.
- Owner’s title insurance: often seller-paid in many Montana transactions but negotiable.
- Title, escrow, or closing fee: commonly $300 to $900.
- Wiring or settlement fees: about $25 to $75.
Recording and government fees
- Recording fees for deeds and mortgage documents: often $10 to $100 total depending on the number of documents.
- Real estate transfer tax: Montana has no statewide real estate transfer tax. Verify any county-level documentary charges.
- Property tax proration: you reimburse the seller for taxes covering the period after your closing date.
Prepaid items and reserves
- Prepaid interest: from your closing date to your first payment.
- Homeowners insurance: often one year paid at closing, roughly $400 to $2,000 or more depending on the property.
- Escrow deposits: lenders often collect 2 to 3 months of taxes and insurance to seed your escrow account.
Inspections and tests
- Home inspection: about $300 to $800.
- Pest inspection: around $75 to $200.
- Septic inspection: roughly $250 to $800 when applicable.
- Well or water-quality test: about $100 to $400, common in rural areas.
- Survey (if required): about $300 to $1,500.
HOA and other items
- HOA transfer or estoppel fee: typically $100 to $400 when applicable.
- Home warranty (optional): about $300 to $700 per year.
Other buyer costs
- Attorney fees if you hire an attorney: variable.
- Courier, wire, or overnight fees: nominal.
- Notary or recording duplication fees as needed.
Local tips for Manhattan buyers
Recording fees and verification
Recording and deed fees are set by Gallatin County. These are usually modest fixed amounts billed per document. For current schedules, confirm with the Gallatin County Clerk and Recorder. For tax timelines and billing, confirm with the Gallatin County Treasurer.
Property tax proration
Property taxes are prorated at closing. The seller typically pays through the day of closing, and you reimburse for the period after that date. Ask your title officer how the proration method and local tax schedule will show up on your settlement statement.
Wells, septic, and water testing
In and around Manhattan, some properties are on private wells and septic systems. Lenders may require tests and inspections depending on the loan program and the property. Budget early for septic inspections and well or water-quality tests, and use your contingency window to complete them.
Who pays for title items
Local custom often guides who pays for various title fees. In many Montana transactions, the seller pays for the owner’s title policy. This is negotiable and should be confirmed in your purchase contract and with your title and escrow team.
Insurance and wildfire considerations
Parts of Gallatin County can carry wildfire risk. Insurance premiums and underwriting requirements may be higher or require mitigation steps. Factor this into your budget for the first-year premium and your ongoing monthly costs.
Loan programs to explore
Many buyers work with local or national lenders that serve Gallatin County. Program choice can impact your costs, especially with FHA, VA, USDA, or down payment assistance options. Montana Housing offers homebuyer assistance programs that may help with down payment or closing costs. Confirm availability and eligibility with your lender.
Sample estimate for a $400,000 home
Here is an example only to help you budget. Your numbers will vary based on loan type, escrow needs, and property specifics.
- Scenario: $400,000 purchase price, 20% down ($80,000), loan amount $320,000.
- Lender fees and appraisal: about $1,500 to $4,000.
- Buyer portion of title and closing: roughly $700 to $2,500.
- Recording and county fees: about $50 to $300.
- Prepaids and escrow reserves: around $2,000 to $6,000.
- Inspections and tests: roughly $500 to $1,800.
Total buyer closing costs in this example: approximately $4,750 to $14,600. That is roughly 1.2% to 3.7% of the purchase price here. Always confirm exact amounts with your lender and title or escrow officer.
Your closing cost checklist
- Get your Loan Estimate within 3 business days of mortgage application.
- Ask your lender which fees can be negotiated or financed.
- Request a detailed estimate from your title and escrow company.
- Schedule inspections and any well or septic testing early in your contingency period.
- Confirm who pays for the owner’s title policy and any HOA transfer fees in your contract.
- Verify property tax proration and utility bill adjustments.
- Arrange certified funds or wire instructions well in advance of closing.
- Secure your homeowners insurance binder and share it with your lender and title team.
How to lower your out-of-pocket
- Compare lenders on rate and fees. Even small differences in origination and underwriting charges can add up.
- Ask about lender credits or seller concessions during negotiations.
- Time your closing date to manage prepaid interest. Closing near month-end can reduce that line item.
- Consider whether paying discount points fits your time horizon, or keep more cash on hand by choosing a zero-point option.
- Check whether you qualify for assistance through Montana Housing or similar programs.
Ready to move forward?
If you want a clear, local plan for closing costs on a Manhattan home, you are in the right place. We will help you compare estimates, negotiate the right items, and keep your timeline on track, start to finish. Have questions or want a personalized estimate for your price range? Schedule your free consultation with Amanda Shearman.
FAQs
What are typical buyer closing costs in Manhattan, Montana?
- Many buyers see totals around 2% to 5% of the purchase price, but your number depends on loan type, property specifics, and local fees. Confirm with your lender and title team.
Does Montana charge a real estate transfer tax?
- Montana has no statewide real estate transfer tax, though you should verify any county-level recording or documentary fees with Gallatin County offices.
Who usually pays the owner’s title policy in Gallatin County?
- In many Montana transactions the seller pays for the owner’s title policy, but this is negotiable and should be confirmed in your contract and with your title or escrow officer.
Are inspections required for homes around Manhattan?
- Lenders generally require an appraisal, and well or septic tests may be required based on the property and loan program; even when not required, inspections are strongly recommended.
When will I see my final closing numbers?
- You will receive a Loan Estimate within three business days of applying and a final Closing Disclosure at least three business days before closing.
Can I roll my closing costs into the mortgage?
- Some costs and discount points can be financed depending on your loan program and loan-to-value limits; third-party inspections are usually paid out of pocket.
How are property taxes handled at closing in Gallatin County?
- Taxes are prorated so the seller pays through the closing date and you reimburse for the period after; verify deadlines and amounts with the title company and the County Treasurer.
