Average Closing Costs in Des Moines, Iowa (2026 Guide)
Homebuyers in Des Moines typically pay $4,500 to $11,250 in closing costs on a $225,000 home — approximately 1.7% of the purchase price.
2026 Closing Cost Fee Breakdown
Based on $225,000 median home price in Des Moines
| Fee | Typical Range | Negotiable? |
|---|---|---|
| Origination Fee | $500 – $2,500 | Yes |
| Underwriting Fee | $400 – $1,200 | Yes |
| Processing Fee | $300 – $900 | Yes |
| Appraisal Fee | $400 – $700 | No |
| Credit Report | $25 – $75 | No |
| Flood Certification | $10 – $50 | No |
| Lender's Title Insurance | $500 – $2,000 | No |
| Settlement Fee | $300 – $800 | Sometimes |
| Recording Fees | $50 – $250 | No |
| Prepaid Interest | Varies by rate | No |
| Property Tax Escrow | 2–3 months | No |
| Homeowners Insurance | 1–2 months | No |
| Estimated Total | $4,500 – $11,250 |
Ranges are typical for a conventional purchase loan · Prepaid and escrow amounts vary by closing date and lender · Source: FairRate market data 2026
Iowa Real Estate Laws That Affect Your Closing Costs
Iowa charges a Real Estate Transfer Tax. Iowa has an Abstract of Title tradition — many Iowa closings use an attorney-certified abstract showing the chain of title rather than title insurance.
Transfer Tax in Iowa
Iowa Real Estate Transfer Tax is $1.60 per $1,000 of sale price over $500.
First-Time Buyer Programs in Iowa
Iowa Finance Authority offers the FirstHome program with down payment assistance.
Income and purchase price limits apply. Contact your lender or your state housing finance agency for current program terms in Des Moines.
Which Fees Are Negotiable?
The fees in Section A of your Loan Estimate are set by the lender and are negotiable: origination, underwriting, and processing fees. Section B fees — appraisal, title, recording — are set by third parties and cannot be negotiated with the lender.
What to Do When You Get Your Loan Estimate
Your lender must provide a Loan Estimate within 3 business days of application. Check Section A fees against the ranges above, ask your lender to justify any fee above the typical range, and compare total closing costs across at least two lenders.
Get Your Fees Analyzed