Closing Costs In Minnesota: Edina Buyer Guide

Are you budgeting to buy in Edina and wondering what your closing costs will look like? You are not alone. Even experienced buyers want clarity on who pays what, how much to set aside, and where you can save. In this guide, you will learn the typical fees for Minnesota buyers, local Edina and Hennepin County nuances, realistic cost ranges by price point, and smart ways to keep numbers in check. Let’s dive in.

Important: Figures in this guide are estimates for planning only. Always rely on your lender’s Loan Estimate and the final Closing Disclosure for exact amounts.

What closing costs cover

Closing costs are the one-time expenses you pay to finalize your purchase, separate from your down payment. They usually include three buckets:

• Lender and third-party fees. Loan origination or points, appraisal, credit report, underwriting, and miscellaneous items like flood certification and wire fees.
• Title and settlement. Title search, title insurance policies, and the settlement or closing fee charged by the title company that prepares and conducts your closing.
• Prepaids and escrows. Prepaid interest, the first year of homeowners insurance, initial deposits into your tax and insurance escrow, and prorations for property taxes or HOA dues.

Each fee serves a different purpose, so understanding the category helps you budget and negotiate.

Who pays what in Edina

Minnesota has both customs and negotiable items that affect who pays specific costs.

• Owner’s title insurance. In many Minnesota markets, sellers commonly pay for the owner’s policy that protects your ownership. This is a custom, not a rule, and it can vary by market and negotiation. Confirm the current practice for Edina before you write an offer.
• Lender’s title policy. If you finance, you typically pay for the lender’s title policy that protects the lender.
• Recording fees. The mortgage recording fee is usually a buyer expense. The deed recording fee is often paid by the seller, though local customs can vary.
• Settlement or closing fee. A separate title company fee is typical and can be paid by either party, depending on local practice and your contract.
• Inspections and surveys. Buyers usually pay for home inspections. Surveys are ordered as needed, often tied to lender requirements or negotiated with the seller.

Your purchase agreement can shift who pays specific items, so ask your agent to clarify the local norm at the time you make your offer.

Minnesota and Hennepin fees to know

• Recording and registration. Counties charge to record the deed and mortgage. Minnesota may also have state-level registration or document taxes. Verify current amounts with Hennepin County and the Minnesota Department of Revenue.
• Property tax proration and escrow. Minnesota property taxes are assessed on a cycle, and you will see a tax proration at closing based on the date you take ownership. If your loan requires escrow, expect an initial deposit of several months of taxes and insurance. To budget, look up annual taxes for the parcel through Hennepin County’s property tax lookup.
• Special assessments. Some Edina neighborhoods may have municipal or special assessments for improvements like streets or sidewalks. Your title company and city disclosures will identify any amounts that affect closing.
• Condo and HOA items. Minnesota condos require a resale certificate that carries a fee. The seller often handles the resale certificate, while buyers may pay HOA transfer or move-in fees. Prorations for dues are common.

How to estimate your total

A simple rule of thumb is to plan for about 2 to 5 percent of the purchase price for closing costs, excluding your down payment. Your number depends on loan type, rate points, title premiums, insurance costs, and how much you set aside for escrows.

Here are common buyer line items and what they cover:

• Loan origination or points. Lender fee to process the loan, often 0.25 to 1.5 percent of the loan amount, or a flat fee.
• Appraisal. Lender-ordered valuation, typically about 450 to 900 dollars depending on property type and program.
• Credit report and underwriting. Usually 25 to 150 dollars combined.
• Title insurance and settlement. Premiums scale with price and can range from several hundred to several thousand dollars. A separate settlement fee is often 300 to 800 dollars.
• Recording fees and taxes. County charges to record your mortgage and deed. The mortgage recording fee is generally a buyer cost in Minnesota.
• Inspections and survey. Home inspection often 350 to 700 dollars. Radon, pest, or other inspections can add 50 to 300 dollars each. Surveys, if required, can run 300 to 1,200 dollars.
• Prepaids and escrows. First year of homeowners insurance, prepaid interest from your closing date to the first payment, and initial escrow deposits for taxes and insurance. This can total several hundred to several thousand dollars depending on tax rates and timing.
• Mortgage insurance. If your down payment is under 20 percent on a conventional loan, expect private mortgage insurance. FHA, VA, and USDA programs have different upfront and annual mortgage insurance or funding fees.
• Miscellaneous. Flood certification, courier, wire, notary, or document prep, often 100 to 400 dollars combined.

Ask your lender for a Loan Estimate early. It outlines each fee so you can plan and compare.

Edina price band examples

These planning ranges illustrate how totals can scale in Edina. They assume a conventional loan and exclude your down payment. Your actual costs will vary.

• Example price 450,000 dollars. Lender, title, and third-party fees: 3,000 to 6,000 dollars. Prepaids and escrow: 2,500 to 6,000 dollars. Total estimated buyer costs: about 5,500 to 12,000 dollars, or roughly 1.2 to 2.7 percent of price.
• Example price 850,000 dollars. Lender, title, and third-party fees: 4,500 to 9,000 dollars. Prepaids and escrow: 4,500 to 12,500 dollars. Total estimated buyer costs: about 9,000 to 21,500 dollars, or roughly 1.1 to 2.5 percent of price.
• Example price 1,400,000 dollars. Lender, title, and third-party fees: 7,000 to 14,000 dollars. Prepaids and escrow: 7,000 to 22,000 dollars. Total estimated buyer costs: about 14,000 to 36,000 dollars, or roughly 1.0 to 2.6 percent of price.

Title premiums scale with price, larger loans increase prepaid interest, and higher-end properties often have higher insurance premiums or reserve needs.

Ways to reduce costs

You have several levers to manage your out-of-pocket amount at closing.

• Ask for seller credits. You can negotiate a seller-paid credit toward closing costs in your offer. Lender rules cap the size of concessions based on loan type and down payment, so confirm your limit with your lender before you write.
• Request lender credits. You can trade a slightly higher interest rate for a lender credit that offsets some fees. This can cut your upfront cash while increasing monthly payment modestly.
• Compare title and lender fees. You can shop some lender fees and choose your title company. Appraisal and credit report costs are usually set, but loan points and certain lender charges can vary.
• Fine-tune timing. Prepaid interest runs from your closing date to the end of the month. Closing near month end can reduce that line item, though it may not change your overall cash need once you factor escrows.
• Clarify who pays what. In Minnesota, sellers often pay the owner’s title policy. Confirm and write it into the purchase agreement so there are no surprises.

Condo and townhome notes

If you are buying a condo or townhome in Edina, plan for a few extras.

• Resale certificate. Required for Minnesota condos and often paid by the seller, though practices can vary by building and market.
• HOA transfer and move-in fees. Buyers may pay transfer or move-in fees, and you will see prorated dues from the seller based on the closing date.
• Special assessments. Ask the association about pending or approved assessments and how they will be handled at closing.

Your agent and title company can verify the current customs for your building or association.

Simple closing cost worksheet

Use this worksheet to build your Edina budget. Replace estimates with actual figures from your lender’s Loan Estimate and your title company.

Disclaimer: The numbers below are estimates for planning only. Confirm all amounts with your lender, title company, and the Closing Disclosure before funding.

Inputs

• Purchase price: __________
• Loan amount: __________
• Closing date: __________

Estimated line items

• Subtotal, third-party and lender fees: __________
• Subtotal, prepaids and escrows: __________
• Total estimated buyer closing costs: __________
• Total as percent of price: total ÷ purchase price × 100 = __________%

Prepaid interest example

• Daily interest = loan amount × interest rate ÷ 365.
• Multiply daily interest by the number of days from your closing date to the end of that month.

For exact property taxes, use the Hennepin County property tax lookup for your parcel, then confirm escrow amounts with your lender.

What to do next

• Ask your lender for a detailed Loan Estimate that reflects your loan type, rate, and any points or credits.
• Ask your title company to confirm title premiums, the settlement fee, and who pays the owner’s policy in Edina right now.
• Discuss seller credit strategies and closing timeline options with your agent so your offer matches your cash plan.

If you want a clear, line-by-line budget for a specific Edina property, reach out to schedule a quick planning call. You will get a custom estimate and strategies to keep your cash to close comfortable for your goals.

Ready to move forward with expert local guidance in Edina and the western suburbs? Connect with Carolyn Olson, Real Estate Agent for a tailored closing cost plan and smart negotiation options.

FAQs

How much should I budget for buyer closing costs in Edina?

• A practical planning range is about 2 to 5 percent of the purchase price, with sample totals of roughly 5,500 to 12,000 dollars at 450,000, 9,000 to 21,500 dollars at 850,000, and 14,000 to 36,000 dollars at 1,400,000.

Which closing cost items can I ask the seller to pay in Minnesota?

• You can negotiate a seller credit toward your closing costs and, in many Minnesota markets, sellers often pay the owner’s title policy, but all items are subject to lender limits and your purchase agreement.

Can I roll closing costs into my loan or get lender credits?

• Some costs can be offset with lender credits in exchange for a higher rate, and certain fees may be financed by increasing the loan amount, subject to loan-to-value and program rules.

How are Hennepin County property taxes handled at closing?

• Expect a property tax proration based on your closing date and, if your loan escrows, initial deposits for taxes and insurance; verify exact amounts with your lender, title company, and the county tax records.

What extra costs apply to Edina condos and townhomes?

• Minnesota condos require a resale certificate that often carries a fee, plus potential HOA transfer or move-in fees and prorated dues, with some charges varying by association and negotiation.

Who prepares the Closing Disclosure and when will I see it?

• Your lender prepares the Closing Disclosure with input from the title company, and you will receive it in advance of closing so you can review exact numbers before you sign.

Why is the owner’s title policy sometimes paid by the seller?

• It is a Minnesota market custom in many areas for sellers to cover the owner’s policy that protects your ownership, though it is negotiable and should be confirmed for Edina.

Which fees are mandatory for first-time buyers and which are optional?

• Lender fees, appraisal, title insurance policies, recording charges, and required program fees are typically mandatory, while inspections and some ancillary services are optional but strongly recommended for due diligence.