How much cash will you actually need to close on a home in Raleigh? If you are planning a move to the Triangle or buying your first place, the final number can feel fuzzy. You want a clear, local view of what buyers typically pay and what you can do to control it. In this guide, you will learn the main closing cost categories, Raleigh and Wake County specifics, what is negotiable, and when you see your final figures. Let’s dive in.
Typical totals in Raleigh
Most buyers in Raleigh should plan for closing costs of about 2% to 5% of the purchase price, not including your down payment. The exact amount depends on your loan type, price point, escrow requirements, and any seller credits you negotiate.
Here are helpful ballpark ranges:
- $300,000 purchase: roughly $6,000 to $15,000
- $400,000 purchase: roughly $8,000 to $20,000
- $600,000 purchase: roughly $12,000 to $30,000
These examples include lender fees, title and attorney charges, title insurance, prepaid items and escrow deposits, inspections, and typical third-party fees. Your lender’s Loan Estimate and your closing attorney’s figures will provide your final number.
What makes up your costs
Lender and loan charges
These are fees tied to your mortgage:
- Origination, processing, underwriting: often about 0.5% to 1.5% of the loan amount combined.
- Discount points: optional; 1 point equals 1% of the loan amount to lower your interest rate.
- Appraisal: typically $400 to $800, higher for complex properties.
- Credit report: usually $25 to $75.
- Mortgage insurance: required for many low down payment loans; can be monthly, upfront, or both depending on the program.
Title, attorney, and recording
In North Carolina, closings commonly run through an attorney who examines title and handles settlement. Expect:
- Title search and lender’s title insurance: one-time premium based on loan amount. Buyers typically pay the lender’s required policy. An owner’s policy is optional but recommended and can be negotiated in the contract.
- Closing/settlement attorney fee: often a few hundred to over a thousand dollars depending on complexity.
- Recording fees: charged by the Wake County Register of Deeds for the deed and mortgage, typically modest.
- Transfer or excise taxes: applied per local rules and deed type; your closing attorney will calculate and include them.
Prepaids and escrow deposits
Your lender will collect certain items upfront:
- Prepaid interest: from your closing date to your first payment date.
- Property taxes: an initial deposit into your escrow to cover upcoming bills; amount depends on timing and Wake County’s schedule.
- Homeowners insurance: often the first year’s premium at closing, plus an escrow cushion.
- Escrow cushion: lenders often require roughly 2 months of escrow payments as a reserve, subject to RESPA rules.
Inspections and third-party reports
These protect your investment and are typically buyer-paid:
- Home inspection: about $300 to $700.
- Termite/pest, radon, septic/well: often $75 to $500 each, depending on scope.
- Survey: sometimes required; can be several hundred dollars.
HOA and condominium fees
If the property is in an HOA, you may see:
- Transfer or resale certificate fees: often $100 to $400 or more.
- Prorated dues: depending on the closing date.
Miscellaneous costs
- Wire, courier, and notary fees: modest line items that appear on the final statement.
Raleigh and Wake County specifics
- Attorney-led closings: In North Carolina, attorneys commonly conduct closings and issue title insurance. You will work with your lender and the chosen closing attorney to review your final numbers.
- Earnest money handling: Earnest money is typically held in escrow by the listing firm, buyer’s brokerage, or the closing attorney. It is credited to your cash to close.
- Property tax proration: Wake County property taxes are prorated at closing based on the closing date. Your attorney will show any credits or charges on your settlement statement.
- Recording with the county: The Wake County Register of Deeds collects recording fees for your deed and deed of trust.
- Local assistance programs: The North Carolina Housing Finance Agency and local resources may offer down payment or closing cost assistance to eligible buyers. Ask your lender about current options and qualification requirements.
What you can control and negotiate
- Seller-paid costs: You can ask the seller to pay part of your closing costs. Program limits apply and vary by loan type. FHA, VA, and conventional loans each set caps and rules, so confirm with your lender.
- Points vs. lender credits: You can pay points to reduce your rate or accept a lender credit to lower upfront costs in exchange for a higher rate. Your lender can show breakeven timelines.
- Owner’s title insurance: Optional but recommended; who pays can be negotiated in the contract.
- Optional inspections: You choose which inspections to order. These add to upfront costs but reduce risk.
- Shopping for services: You can compare lenders, inspectors, and settlement providers where allowed. Reviewing multiple Loan Estimates helps you reduce fees.
How and when you see numbers
- Loan Estimate: After you apply, your lender must issue a Loan Estimate within three business days. This outlines your projected closing costs and cash to close.
- Closing Disclosure: You will receive a Closing Disclosure at least three business days before closing. This is the final accounting.
- Settlement statement: Your closing attorney prepares a detailed statement of title fees, recording charges, escrow deposits, and disbursements.
- Team coordination: Your agent, lender, and attorney will reconcile figures and apply any seller credits so you see one clear cash-to-close number.
- Bringing funds: Most settlements require a wire or cashier’s check. Always verify wiring instructions by phone with your closing attorney to avoid wire fraud.
Budgeting checklist for Raleigh buyers
- Request a Loan Estimate early from at least one lender and use it to build your budget.
- Plan for 2% to 5% of the purchase price for closing costs and confirm with your lender and closing attorney.
- Ask your lender what can be covered by seller credits and verify program limits.
- Confirm how many months of taxes and insurance will be collected for escrow at closing.
- Get estimates from your closing attorney for title insurance, settlement fees, and recording costs.
- Add inspections, HOA transfer fees, and survey costs to your plan.
- Verify wire instructions by phone with your closing attorney before sending funds.
- Explore state or local assistance programs if you meet eligibility criteria.
Example: applying the ranges
For a $400,000 purchase in Raleigh, many buyers will see total closing costs roughly between $8,000 and $20,000. A typical share might include lender and appraisal fees, title and attorney charges, prepaid interest, initial escrow deposits for property taxes and insurance, inspections, and any HOA-related fees. The final mix depends on loan type, timing, and negotiated credits. Your Loan Estimate and your attorney’s settlement statement will narrow this to a precise cash-to-close figure.
Work with a local guide
Closing costs are a mix of loan rules, local practices, and timing details. You deserve a clear, accurate number early, plus smart strategies to manage it. With concierge-level coordination, Tonya can prompt your lender for a detailed Loan Estimate, request a preliminary settlement quote from your closing attorney, reconcile the two, and review your Closing Disclosure well before closing so there are no surprises. If you are planning a Triangle move or buying your first home, reach out to Tonya Wicker Hunt to get a tailored estimate and a step-by-step plan.
FAQs
What are typical buyer closing costs in Raleigh?
- Most buyers budget 2% to 5% of the purchase price, excluding the down payment. Your final amount depends on loan type, price, timing, and any seller credits.
What fees do North Carolina closing attorneys charge?
- Expect a closing or settlement fee that ranges from a few hundred to over a thousand dollars, plus title search and title insurance premiums based on your loan amount.
How much will my escrow deposits be at closing?
- Lenders often collect prepaid taxes and insurance plus an escrow cushion of about 2 months of escrow payments, adjusted to the closing date and billing schedule.
Can the seller pay my closing costs in Wake County?
- Yes, within loan program limits. FHA, VA, and conventional loans allow seller concessions up to certain caps. Confirm current limits with your lender.
When will I receive my Closing Disclosure?
- Your lender must deliver it at least three business days before closing so you have time to review the final numbers.
Who holds earnest money in Raleigh and how is it applied?
- Earnest money is typically held by the listing firm, buyer’s brokerage, or the closing attorney and is credited to your cash to close at settlement.
