Mortgage lender closing cost rankings in Delaware (2025)

Delaware uses a mortgage instrument (not a deed of trust) and requires judicial foreclosure, meaning lenders must obtain a court order before completing a foreclosure — a process that can take considerably longer than non-judicial states. Delaware is an attorney-closing state, meaning legal representation plays a role in the closing transaction. The state imposes a realty transfer tax split between state and county/local jurisdictions; the combined rate is typically 4% of the purchase price, split between buyer and seller, though the allocation is negotiable. Delaware's title insurance rates are promulgated (set) by the state rather than operating under a file-and-use system. Prepayment penalties on residential mortgages are restricted under state consumer lending laws. The Delaware Office of the State Bank Commissioner oversees mortgage lenders and brokers operating in the state, requiring licensure and providing a complaint channel for consumers. Buyers should confirm which closing costs are customarily seller-paid in their specific county, as local practice varies between New Castle, Kent, and Sussex counties.

Conventional loans dominate Delaware's purchase market, accounting for 66.7% of originations (6,799 loans) at a median rate of 6.625% and median total costs of $6,085. FHA loans represent a substantial 23.2% share (2,366 loans), reflecting meaningful demand from first-time and lower-down-payment buyers — FHA borrowers faced notably higher median costs of $12,206, largely driven by upfront mortgage insurance premiums. VA loans made up 9.7% (989 loans), supported by proximity to Dover Air Force Base and other military installations in the region. USDA loans were negligible at 0.4% (42 loans), consistent with Delaware's mostly suburban and coastal geography.