Closing costs are one of those surprises that catch first-time buyers off guard when purchasing homes in Fort Mill, Waxhaw, or throughout the Charlotte metro area. Let me break down what you'll be paying for and how much to budget. Closing costs typically run 2-5% of the purchase price, so on a $400K home in Ballantyne or Indian Land, expect $8K-20K in closing costs. The wide range depends on your loan type, down payment, and local fees. FHA loans tend to have higher closing costs due to additional fees, while VA loans might be lower in some areas

The biggest components are usually loan origination fees (0.5-1% of loan amount), title insurance ($1K-3K), attorney fees ($500-1,500 in North Carolina), appraisal ($500-800), and home inspection ($400-600). You'll also have prepaid items like homeowners insurance, property taxes, and interest that get collected at closing. Don't forget about escrow setup costs – your lender will collect several months of property taxes and insurance upfront to establish your escrow account. This isn't really a "cost" since it's money you'd pay anyway, but it's cash you need at closing

On homes in areas like Weddington or Marvin with higher property values, this can be substantial. Some closing costs are negotiable – you can ask sellers to contribute toward closing costs, especially in slower markets or if the home has been on the market for a while. This is common in our Charlotte metro area, particularly for first-time buyers. Shop around for services like homeowners insurance and compare loan estimates from multiple lenders to minimize costs. My advice is to get a detailed estimate from your lender early in the process and budget on the high end

It's better to have extra money available than to scramble at the last minute. Many buyers focus so much on the down payment that they forget about closing costs, which can be significant whether you're buying in Pineville or Fort Mill.