Staring at your down payment and wondering what else you will need to bring to the table in Cary? You are not alone. Closing costs can feel murky, and the line items often show up at different times during the process. This guide breaks down what you will likely pay, how to estimate your total cash to close, how to compare lender quotes with confidence, and when seller concessions might help. Let’s dive in.
What buyers pay at closing in Cary
Loan-related lender fees
Most buyers pay a set of lender charges to create and approve the mortgage. These can include a loan origination, processing, and underwriting fee. You may also see optional discount points, which are prepaid interest that lower your rate if you choose to buy them. Other common items are the credit report, appraisal, rate lock, and small lender administration fees.
Some of these fees are lender specific and some are tied to third parties. For example, the appraisal is usually required by the lender to confirm value. Ask which fees are refundable and which are not. Also confirm which items you can shop for and which you cannot.
Title and settlement costs
You will pay for a title search to confirm ownership and any liens. Lenders typically require a lender’s title insurance policy to protect their interest. An owner’s title insurance policy is optional but strongly recommended, since it protects your ownership. You will also see a settlement or closing fee and, in North Carolina, attorney involvement is common, which can change how these charges are labeled.
Government and recording fees
Expect recording charges to file the deed and mortgage with the Wake County Register of Deeds. There can be small government fees tied to recording and document handling. Property taxes are typically prorated based on the closing date. Depending on timing, you may receive a credit from the seller or owe a portion at closing.
Prepaid items and escrow deposits
Prepaids are separate from closing fees but often make up a large share of your cash to close. These include prepaid interest from the funding date to month end, your first year of homeowners insurance, and the initial escrow deposit required by your lender. Lenders commonly collect a couple months of property taxes and insurance at closing to seed the escrow account. If the home has an HOA, budget for any transfer or estoppel fees noted in the contract.
Inspections, surveys, and other third-party items
Home, pest, radon, septic, or well inspections are usually paid when ordered, not at the closing table. A survey may be requested by you or your lender, depending on the property. While these are outside closing, they still impact your overall budget. Plan for these early so they do not become last-minute surprises.
How much to budget and how to estimate
Typical ranges for planning
A useful starting point is 2 to 5 percent of the purchase price for buyer closing costs, excluding prepaids and escrow deposits. Prepaid items and the initial escrow can add several hundred to several thousand dollars depending on taxes and insurance. Inspection and survey costs typically range from a few hundred to around fifteen hundred dollars, based on what you order.
For example, on a $400,000 home, 2 to 5 percent is $8,000 to $20,000 for closing costs before prepaids. Prepaids and escrow deposits could add another $3,000 to $8,000 depending on the home’s tax bill and your insurance premium. Your total cash to close is your down payment plus closing costs plus prepaids and escrow.
Step-by-step estimation workflow
- Set your target price and down payment to determine an expected loan amount.
- Request written Loan Estimates from at least two or three lenders for the same loan type and rate scenario so you can compare.
- Estimate prepaids:
- Property taxes prorated based on the closing date and Wake County’s tax timing.
- One year of homeowners insurance, ask your insurer for a binder quote.
- Prepaid interest from funding to month end, your lender can estimate.
- Initial escrow deposit, often a couple months of taxes and insurance, confirm with your lender.
- Add inspection and survey estimates from your chosen vendors.
- Ask a local title or closing attorney for a sample buyer settlement statement at your price point, and check the Wake County recording fee schedule.
- Add it up, closing costs plus prepaids and escrow plus inspections equals your estimated cash to close, before down payment.
- Add a buffer of $500 to $1,500 for timing differences or small surprises.
How to compare lender quotes
Use the Loan Estimate for apples-to-apples
The Loan Estimate is a standardized, three-page form lenders must provide within three business days of application. It shows origination charges, services you cannot shop for, services you can shop for, and the estimated cash to close. Focus on origination, points, and the total of estimated closing costs. Ask lenders to explain big differences, and whether any fees are refundable.
Reduce costs with smart shopping
Request Loan Estimates from at least three lenders. Compare identical scenarios, including the same rate versus points. You can often negotiate origination or request a lender credit in exchange for a slightly higher rate, then weigh the lifetime cost. Shop third-party services where allowed, and ask your lender early for estimates of prepaid interest and initial escrow so you can plan.
Understand the Closing Disclosure timing
You should receive a final Closing Disclosure at least three business days before closing. Compare it line by line with your Loan Estimate. Ask about any major changes and whether they fall within the permitted variance rules. If needed, your lender may be required to reissue disclosures, which can change timing.
Seller concessions in Cary
What they are
Seller concessions are credits the seller agrees to provide to help cover your closing costs, prepaids, or specific fees. Concessions can be a set dollar amount or payment of certain items like owner’s title insurance or an HOA transfer fee. The details are written into the contract so everyone is clear on how the credit will be applied.
Rules and limits
Each loan program has limits on how much a seller can contribute and what those funds can cover. Your lender and underwriter must approve the structure of any concessions. Avoid vague requests and specify whether the credit should apply to closing costs, prepaids, or certain fees, so it meets program rules.
When to request
You can request concessions in your initial offer or during inspection negotiations. If an inspection reveals needed work, a credit at closing can be cleaner than repairs. Market conditions matter. In a buyer’s market, concessions are more common. In a competitive market, sellers may prefer a higher price with fewer credits.
Practical negotiation tips
- Confirm your program’s maximum allowable concession before you write the offer.
- Consider asking the seller to pay specific items rather than a lump sum.
- If the seller resists concessions, compare the trade-off between a higher price with a credit and a lower price without one. Aim for the structure that best fits your loan limits and cash needs.
Local checks for Wake County buyers
Property taxes and proration
Wake County tax amounts and due dates can change, which affects proration and escrow set-up. Verify the current year’s property tax and when bills are issued. Ask how the closing date will impact your prorations and prepaids.
Recording fees and timelines
Recording charges with the Wake County Register of Deeds are usually modest but vary by document and page. Confirm the current fee schedule early, since these are part of your final tally. Your attorney or title firm can provide an estimate.
HOA transfer and estoppel fees
Many Cary neighborhoods have active HOAs with one-time transfer or estoppel fees. Policies vary by community and management company. Request this information as soon as you go under contract so you can plan and avoid delays.
Title insurance custom
Whether the buyer or seller pays for the owner’s title policy depends on local practice and negotiation. Ask your agent or closing attorney what is typical in your part of Cary. Then decide what to request in your offer.
Sample budget checklist
Use this to organize your numbers and questions:
- Get preapproved and request a sample Loan Estimate that includes prepaids and escrow estimates.
- Ask your agent for trusted local closing attorneys or title companies, then request a sample buyer settlement statement for your price point.
- Confirm Wake County property tax timing and current amounts for proration.
- Confirm Wake County Register of Deeds recording fees for deed and mortgage.
- Request HOA transfer or estoppel fees from the community manager if applicable.
- Order inspections early and budget those separately from closing costs.
- Confirm your loan program’s maximum seller concession before you write the offer.
- Request your Closing Disclosure at least three business days before closing and compare it to your Loan Estimate.
Buying in Cary should feel exciting, not confusing. When you understand each cost category, request clear Loan Estimates, and line up local numbers early, you protect your budget and reduce stress. If you want a local, hands-on guide to help you plan your cash to close, negotiate credits, and coordinate a smooth closing, reach out to Jeff L Peterson. Schedule a free consultation and get a clear, local plan.
FAQs
What are typical buyer closing costs in Cary?
- Plan for 2 to 5 percent of the purchase price for closing costs, then add prepaids, initial escrow deposits, inspections, and any HOA transfer fees.
How do I estimate my total cash to close?
- Add your down payment, lender and title fees, recording charges, prepaids and escrow deposits, plus inspections. Ask your lender and closing attorney for written estimates.
What is the Loan Estimate and why does it matter?
- It is a standardized, three-page quote you receive within three business days of application. Use it to compare origination, points, and the total estimated cash to close across lenders.
When will I see final numbers before closing?
- You should receive a Closing Disclosure at least three business days before closing. Compare it to your Loan Estimate and ask about any major changes.
Can I ask the seller to help with my costs?
- Yes, within your loan program’s limits. Request concessions in your offer or after inspections, and structure them to apply to approved closing costs or prepaids.
