Lender fees are the costs charged by your mortgage company to process and fund the loan. These typically include an origination fee (0.5 to 1 percent of the loan amount), an underwriting fee ($400 to $900), a credit report fee ($25 to $75), and a flood certification fee ($10 to $20). Specifically, lender fees vary significantly between lenders — getting loan estimates from two or three lenders before committing allows you to compare these costs directly. Furthermore, some lenders offer no-origination-fee loans in exchange for a slightly higher interest rate.

Title and Settlement Fees

Title and settlement fees are paid to the title company that handles the closing. These include the title search fee ($150 to $300), the closing or settlement fee ($300 to $600), and title insurance premiums. Specifically, Indiana lenders require a lender’s title insurance policy as a condition of the loan. An owner’s title insurance policy — which protects your equity — is optional but strongly advisable. Together, lender and owner title policies typically cost $700 to $1,500 on a Monticello-area purchase depending on the purchase price.

Transfer Tax

Indiana does not charge a state-level transfer tax on residential real estate purchases, which is a meaningful advantage compared to many other states. Specifically, some Indiana counties and municipalities charge a local transfer fee, but White County does not assess a buyer transfer fee beyond standard recording fees. Furthermore, recording fees — paid to the White County Recorder to record the deed and mortgage documents — typically run $50 to $150 total.

Appraisal

The appraisal is ordered by your lender and paid by you — typically $400 to $650 for a standard single-family residence in White County. Specifically, the appraisal fee is often collected upfront before closing rather than on closing day. For properties with unique characteristics — lake frontage, acreage, or unusual construction — appraisals may run higher due to the additional complexity of finding comparable sales.

Prepaid Items

Prepaid items are not fees — they are advance payments on recurring homeownership costs that your lender collects at closing. Specifically, these include prepaid homeowners insurance (typically one full year’s premium paid upfront, $800 to $1,500 for a Monticello home), prepaid mortgage interest from closing day to the end of that month, and the initial setup of your property tax escrow account (typically two to three months of estimated taxes collected upfront). Furthermore, Indiana property taxes are paid in arrears — meaning you pay for the prior period — so your initial escrow setup accounts for this timing. On a $257,500 home at White County’s 0.74 percent tax rate, two months of escrow would be approximately $317.

These are estimates for illustration. Actual costs vary by lender, loan type, and transaction specifics. Your lender is required to provide a Loan Estimate within three business days of application showing projected closing costs, and a Closing Disclosure three business days before closing showing final figures.

Yes — in several ways. First, some lender fees are negotiable directly with your lender, particularly origination fees. Shopping multiple lenders and comparing Loan Estimates is the most reliable way to reduce lender-side costs. Second, in some transactions buyers negotiate seller concessions — where the seller agrees to credit the buyer a set amount toward closing costs. Specifically, in Monticello’s active market where well-priced homes average 14 days on market, asking for seller concessions on a competitively priced home may weaken your offer. However, on a longer-sitting or overpriced listing, seller credits are a common negotiating tool.

Additionally, some loan programs — particularly USDA and VA loans — have specific rules about which closing costs the seller can and cannot pay. First-time buyers may also be eligible for Indiana Housing and Community Development Authority assistance that can help offset closing costs. The first-time homebuyer programs guide covers what is available.

Frequently Asked Questions — Indiana Closing Costs

Questions About Your Closing Costs? Ask Redlow Group.

Understanding your total cash to close before you make an offer is how you avoid surprises. Redlow Group walks every buyer through a realistic cost estimate before the first offer is written.