Buying in Old Town Scottsdale and wondering how much you’ll need beyond your down payment? You’re not alone. Many buyers, especially condo shoppers, are surprised by HOA packages, lender fees, and prepaids that show up at the end. In this guide, you’ll see what closing costs include, typical ranges for Old Town condos and single-family homes, and smart ways to reduce your cash to close. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepayments you make to finalize your purchase. In Old Town Scottsdale, they typically fall into these buckets:
- Lender fees: origination, underwriting, appraisal, credit report, optional discount points, and mortgage insurance if applicable.
- Title and escrow: settlement fees, lender’s title insurance, and recording fees.
- Prepaids and impounds: prepaid interest, first-year homeowners insurance, and escrow deposits for taxes and insurance.
- Inspections: general home inspection and, if required, wood/termite.
- HOA and condo items: resale package/estoppel, transfer fees, and move-in deposits, which are common in Old Town.
- Government/recording: county recording charges and any applicable documents.
- Miscellaneous: courier, wire, or notary fees.
Typical totals in Old Town Scottsdale
Nationally, buyers often pay about 2%–5% of the purchase price in closing costs. In Old Town, where many purchases are condos in managed buildings, you should plan within that range and account for HOA-related items.
- Condos and mid-priced homes: commonly around 2.5%–4% of the purchase price, depending on your loan, lender, and any seller credits.
- Higher-priced homes or complex loans: absolute dollars rise with the price even if the percentage is similar.
Example: Old Town condo
- Purchase price: $400,000 with 10% down (loan $360,000)
- Typical buyer closing-cost range: about 2.5%–4% = $10,000–$16,000
- Representative items: lender origination 0.5%–1% of loan ($2,000–$3,600), appraisal $500–$700, lender’s title policy roughly $1,500–$3,000, HOA resale package $150–$500, inspections $350–$900, plus prepaids and recording.
Example: Single-family or higher-priced condo
- Purchase price: $800,000 with 20% down (loan $640,000)
- Typical buyer closing-cost range: about 2.5%–4% = $20,000–$32,000
- Larger loan amounts increase lender fees, title policy costs, insurance, and some prepaids.
Lender fees explained
Your lender will outline these costs on your Loan Estimate, which you should receive within 3 business days after you apply. Review for:
- Origination/underwriting/processing: typically 0.5%–1.0% of the loan amount, or a flat fee.
- Appraisal: generally $450–$900; condos may require an added project review fee.
- Credit report and application: often $25–$50.
- Discount points: optional; 1 point equals 1% of the loan to buy a lower rate.
- Mortgage insurance: FHA loans include an upfront fee; conventional PMI may be monthly or a single premium at closing. VA funding fees vary and can be financed.
- Rate-lock or float-down options: occasionally charged by the lender.
You’ll receive the final Closing Disclosure at least 3 business days before closing. Compare it to your Loan Estimate and ask questions about any changes.
Title and escrow costs
Title and escrow companies handle funds, documents, and recording. Fees vary by company and property type.
- Escrow/settlement fee: typically $300–$1,200.
- Lender’s title insurance: often 0.4%–0.8% of the loan amount.
- Owner’s title policy: sometimes covered by the seller in our market, but not always. Clarify who pays in your contract.
- Recording fees: modest county charges for deeds and loan documents.
Prepaids and impounds
These are not fees for services; they are upfront funding for items you’ll owe anyway.
- Prepaid interest: varies with your closing date and loan amount.
- First-year homeowners insurance: often $600–$2,000+ due at closing.
- Escrow deposits: lenders usually collect 1–3 months of property taxes and insurance to seed your escrow account.
Inspections and property condition
Even in condo buildings, inspections matter.
- General home inspection: $300–$700; smaller condos can be on the lower end.
- Wood/termite inspection: $50–$200, if required.
- Building-specific checks: a few properties may have unique requirements. Your agent will flag them early.
Condo and HOA costs in Old Town
Old Town Scottsdale has a high concentration of condos, lofts, and mixed-use buildings. Expect:
- HOA resale package/estoppel: typically $150–$500. This packet includes community rules, budgets, and assessments.
- Transfer fee: often $0–$500, depending on the HOA.
- Move-in deposits or elevator reservations: common in urban buildings; amounts vary and may be refundable.
- Special assessments: disclosed in the resale packet; buyers may be responsible for prorated or future assessments.
- Lender condo project review: some lenders charge a small fee to review the building’s eligibility.
Timing tip: HOA resale packets can take days to weeks. Request them right after your contract is accepted to avoid delays.
Government and recording in Maricopa County
Arizona does not impose a general statewide real property transfer tax, and local transfer taxes are uncommon in Maricopa County. You will still pay modest county recording fees for your deed and loan documents. If you want current figures, confirm with the Maricopa County Recorder.
How to reduce your cash to close
You have several levers to lower out-of-pocket costs:
- Ask for seller concessions to cover some closing costs or HOA fees.
- Consider lender credits in exchange for a slightly higher rate.
- Compare multiple lenders and title companies; fees and rates vary.
- If eligible, roll certain costs into your loan.
- Explore first-time buyer or local assistance programs if you qualify.
- Negotiate who pays HOA resale, estoppel, and transfer fees in your contract.
- Use allowable gift funds for down payment and/or closing, following lender rules.
- Time your closing date to manage prepaid interest.
When to involve your team
Getting the right people in early can save time and money.
- Before you write an offer: get pre-approved and discuss estimated closing costs.
- Right after ratification: request the HOA resale packet and confirm who pays each fee.
- During escrow: select title/escrow promptly and track deadlines for loan approval, appraisal, and HOA documents.
- Timeline: most escrows run 30–45 days, with condo documents sometimes being the biggest variable.
- Three days before closing: review your Closing Disclosure carefully and confirm your final funds to close.
Quick buyer checklist
- Get pre-approved before touring seriously.
- Ask who pays the owner’s title policy and HOA resale packet in Scottsdale contracts.
- Order the HOA resale packet immediately after acceptance.
- Compare at least two Loan Estimates and title quotes.
- Expect your Closing Disclosure at least 3 business days before closing and verify cash to close.
- Explore seller credits, lender credits, and assistance programs if you need to reduce cash outlay.
Buying in Old Town Scottsdale should feel exciting, not confusing. If you want a clear estimate tailored to your target buildings and price point, and a plan to keep your cash to close manageable, our team is here to help. Connect with the local experts at Key Select Real Estate to get started.
FAQs
What are typical buyer closing costs in Old Town Scottsdale?
- Most buyers see about 2%–5% of the purchase price in closing costs, with many Old Town condo purchases landing around 2.5%–4% depending on the loan and credits.
How do HOA fees affect closing costs for Old Town condos?
- Expect an HOA resale package/estoppel (often $150–$500), possible transfer fees, and move-in deposits; confirm amounts early to avoid surprises.
When will I know my exact closing costs from the lender?
- After application, you should receive a Loan Estimate within 3 business days, then a final Closing Disclosure at least 3 business days before closing.
Can the seller help pay my closing costs in Scottsdale?
- Yes, you can negotiate seller concessions or allocation of HOA transfer/resale fees in the contract, subject to loan guidelines.
What prepaid items increase my cash to close?
- Prepaid interest, the first-year homeowners insurance premium, and escrow deposits for taxes and insurance can add several hundred to a few thousand dollars.
Do I have to buy an owner’s title policy as a buyer?
- Practices vary; sometimes the seller pays for it, but not always. Decide and negotiate who pays for the owner’s policy in your purchase agreement.
