Buying your first home in Fayetteville is exciting, but the final number you bring to the closing table can feel like a mystery. You are not alone if you are wondering what buyer closing costs cover and how much to budget. In this guide, you will learn the typical 2%–5% range, see real examples by price point, and get local Fayette County tips to help you plan and possibly save. Let’s dive in.
Closing costs 101
Closing costs are the fees and prepayments you pay to complete your purchase, separate from your down payment. They include lender charges, third‑party services, title and recording fees, and prepaid items like taxes and insurance. National guidance places typical buyer closing costs at about 2% to 5% of the purchase price depending on your loan, price, and local fees. You can read a plain‑English overview in the Consumer Financial Protection Bureau’s article on what closing costs include, and Bankrate’s summary of how much closing costs usually run.
What you will likely pay
Here are the most common cost categories for Fayetteville buyers using a mortgage:
- Loan charges: Origination, processing, underwriting, and any discount points. These are often about 0.5%–2% of the loan amount.
- Appraisal and inspections: An appraisal often runs $400–$800. A general home inspection is commonly $300–$800, with optional specialty inspections extra.
- Title, settlement, and recording: Title search, settlement/closing agent fees, and title insurance policies. Combined title premiums and settlement fees commonly fall near 0.5%–1.5% of the price in many markets, with county recording fees added.
- State and county taxes or fees: Georgia may charge state‑level mortgage recording taxes. Lenders usually collect these at closing.
- Prepaids and escrow deposits: One full year of homeowner’s insurance up front, plus an initial escrow cushion. Expect 2–6 months of taxes in escrow, depending on the calendar and due dates.
- HOA‑related fees: If the property is in an HOA, plan for transfer or initiation fees and prorated dues.
- Other items: Survey if required, attorney fees if used, wire or courier fees, and credit report charges.
Georgia and Fayette County factors
Recording and state mortgage taxes
Georgia’s rules include an intangible recording tax for certain mortgages. Your lender will calculate and collect any state charges at closing. To understand the state framework, review the Georgia Department of Revenue’s page on the intangible recording tax. For county recording procedures and fee details, visit the Fayette County government site and contact the Clerk of Superior Court.
Property tax proration and escrow
Property taxes in Fayette County are prorated at closing based on local due dates and assessed values. Lenders also collect an initial escrow deposit that often equals a few months of taxes. For current millage rates, assessments, and due dates, contact the Tax Commissioner through the Fayette County website.
Title insurance and settlement
Georgia regulates title insurance differently than some states, and premiums depend on price and policy type. Ask your lender or a local title company for a quote early in the process so you can budget accurately. If you consider skipping an owner’s title policy, talk with your advisor about risks before deciding.
HOA documents and fees
Many Fayette County communities have homeowners associations. Request resale documents early and budget for any transfer or initiation fees plus prorated dues that may appear on your Closing Disclosure.
Example budgets by price point
These illustrations help you plan. Your numbers will vary by loan program, the day of the month you close, whether you buy discount points, and any seller concessions or lender credits. You will receive a detailed Loan Estimate up front and a Closing Disclosure at least three business days before closing that shows exact figures.
$200,000 purchase (estimate)
- Total closing costs: about $4,000–$10,000
- Loan costs: $1,000–$3,000
- Appraisal and inspections: $700–$1,500
- Title, recording, settlement: $1,000–$2,000
- Prepaids and escrow deposits: $1,000–$3,500
$350,000 purchase (estimate)
- Total closing costs: about $7,000–$17,500
- Loan costs: $1,750–$4,500
- Appraisal and inspections: $700–$1,800
- Title, recording, settlement: $1,750–$3,500
- Prepaids and escrow deposits: $2,800–$7,700
$500,000 purchase (estimate)
- Total closing costs: about $10,000–$25,000
- Loan costs: $2,500–$7,500
- Appraisal and inspections: $700–$2,000
- Title, recording, settlement: $2,500–$5,000
- Prepaids and escrow deposits: $4,300–$10,500
$750,000 purchase (estimate)
- Total closing costs: about $15,000–$37,500
- Loan costs: $3,750–$11,250
- Appraisal and inspections: $700–$2,500
- Title, recording, settlement: $3,750–$7,500
- Prepaids and escrow deposits: $6,800–$16,250
Note: The biggest swing factors are the size of your escrow deposits and whether you pay discount points to lower your interest rate.
Lower your cash to close
- Shop 2–3 lenders and compare Loan Estimates by total cost and APR, not just rate.
- Negotiate seller concessions in your offer within your loan program’s limits.
- Ask about lender credits in exchange for a slightly higher rate.
- If eligible, roll allowable fees into the loan balance.
- Time your closing near month‑end to reduce prepaid interest days.
- Compare title and settlement fees among local providers.
- Explore homebuyer assistance. The Georgia Department of Community Affairs lists current programs on its homeownership page.
Your step‑by‑step checklist
- Get pre‑approved so your lender can estimate cash to close accurately.
- Request Loan Estimates from at least two lenders and ask them to explain each fee.
- Schedule your home inspection and make room for any specialty inspections.
- Consider seller concessions and lender credits to fit your budget.
- Review your Closing Disclosure carefully at least 3 business days before closing.
- Confirm wire instructions verbally using verified phone numbers to reduce wire‑fraud risk.
- Bring a government ID and arrange good funds per your closing attorney or settlement agent.
Who to contact for exact numbers
- Lender or mortgage broker: For Loan Estimates and the final Closing Disclosure.
- Title or settlement company: For title premiums, closing fees, and wiring instructions.
- Fayette County offices: Visit the Fayette County website for the Clerk of Superior Court (recording fees and procedures) and Tax Commissioner (tax rates and due dates).
- Georgia Department of Revenue: For state recording tax rules, including the intangible recording tax.
- Georgia Department of Community Affairs: For current down payment and closing cost help on the homeownership page.
- Consumer Financial Protection Bureau: For clear guidance on closing costs and the Closing Disclosure.
If you want a calm, step‑by‑step plan tailored to your price point and timeline, let’s talk through your numbers and strategy together. Contact Cyndi Williams for local guidance that keeps your Fayetteville purchase on track from offer to closing.
FAQs
What are typical buyer closing costs in Fayetteville?
- Most buyers should plan for about 2%–5% of the purchase price for closing costs, plus the down payment and moving expenses.
When will I see my exact closing costs?
- Your lender must provide a Closing Disclosure at least three business days before closing that itemizes every fee, tax, and prepaid so you can review and ask questions.
Can I roll closing costs into my mortgage?
- Sometimes, depending on your loan program and loan‑to‑value limits. This raises your loan balance and monthly payment, so review the tradeoffs with your lender.
Can the seller pay some of my costs?
- Yes, seller concessions are common and negotiated in the contract, but limits depend on loan type and down payment. Ask your lender for your program’s caps.
How can I lower my cash to close?
- Compare lender quotes, request seller concessions, consider lender credits, time your closing near month‑end, and check Georgia DCA programs for potential assistance.
