Wondering how much cash you’ll need to close on a Plaza Midwood home? You’re not alone. Closing costs can be confusing, especially when friends compare North Carolina to South Carolina. In this guide, you’ll get a clear picture of what closing costs include, what to budget, how NC and SC closings differ, and how credits can lower your out-of-pocket total. Let’s dive in.
Closing costs defined
Closing costs are the fees and prepaid items collected at settlement. They usually include lender charges, title and settlement fees, insurance, recording fees, and prorations like property taxes. Your down payment is separate and not included in closing costs.
Most buyers should budget roughly 2% to 5% of the purchase price for closing costs. Where you land in that range depends on your loan type and lender fees, whether you buy an owner’s title policy, the size of prepaids for taxes and insurance, HOA document costs, and any seller credits you negotiate. Some costs can be offset with lender credits or seller concessions, but prepaids are typically paid up front.
Buyer cost breakdown
Here is a realistic look at common buyer-side line items in Charlotte and Mecklenburg County. Exact amounts vary by lender, property, and timing. Get quotes early for precision.
Lender fees (if financing)
- Origination or underwriting: about $500 to $3,000 or a percentage of the loan.
- Discount points (optional): about 0.25% to 1% of the loan per point.
- Appraisal: about $350 to $800.
- Credit report: about $25 to $75.
- Flood certification and tax service: about $20 to $200.
- Loan review, wire, or courier: about $25 to $400.
Title and settlement
- Lender’s title insurance policy: required by most lenders, cost varies by loan amount.
- Owner’s title insurance policy: optional but widely recommended, cost varies by price.
- Title exam, document prep, and closing/settlement fee: about $300 to $1,500 total.
- Recording fees for deed and mortgage: often $50 to $300 in total.
Prorations and prepaids
- Property tax proration: timing-based reimbursement to the seller for the post-closing period.
- Homeowners insurance: often one year collected at closing.
- Prepaid mortgage interest: from closing date to your first payment cycle.
- Initial escrow deposit: commonly 2 to 3 months of taxes and insurance.
Inspections, survey, and HOA items
- Home inspection: about $300 to $600.
- Survey (if required): about $300 to $1,000.
- HOA resale or disclosure package: often $100 to $400 when applicable.
Miscellaneous
- Transfer taxes or documentary stamps: vary by state and county and by custom on who pays.
- Recording tax or excise: may apply in some jurisdictions.
- Wire, courier, or notary: usually $25 to $150.
NC vs SC differences
Buying in Plaza Midwood means a North Carolina closing, but many shoppers also consider nearby South Carolina suburbs. Practices differ, so it helps to know the basics.
Who conducts closing
- North Carolina: Closings are commonly run or overseen by a closing attorney who prepares documents and provides legal opinions.
- South Carolina: Title and escrow companies more commonly handle settlement. Attorney involvement varies by local practice.
Title insurance and workflow
- Both states use title insurance. The buyer typically pays for the lender’s policy and may choose an owner’s policy. Who pays the owner’s policy can vary by local custom and negotiation.
Transfer taxes and stamps
- Rates and customary payer vary by state and county. Confirm details early, since these line items are not identical across the border.
Recording
- Fees and recording mechanics differ by county. Mecklenburg County sets its own recording fees for NC transactions.
HOA resale requirements
- Both states require HOA disclosures. Costs and who pays can vary by association and contract.
Bottom line: Many items are negotiable. Local closing customs differ between Charlotte and nearby South Carolina communities, so request written estimates for the specific property and county.
Plaza Midwood examples
Use these Plaza Midwood scenarios to frame your budget. These are estimates for planning only. Always confirm with your lender and closing attorney for exact figures.
Scenario A: $350,000 condo or small home
- Typical buyer closing-cost range at 2% to 5%: $7,000 to $17,500.
- Sample mid-range breakdown
- Lender fees, appraisal, credit: $1,200
- Title and settlement, including lender’s policy and recording: $1,200
- Owner’s title insurance (optional): $1,750
- Prepaids and escrow seed: $2,000
- Property tax proration: $1,000
- HOA resale documents: $200
- Inspection, survey, misc.: $800
- Estimated total: about $8,150
How credits help
- Seller credit example: A $5,000 seller credit could reduce out-of-pocket to about $3,150, subject to your loan program limits.
- Lender credit example: Opt for a slightly higher rate and receive a lender credit to offset origination or appraisal fees, which lowers cash due but increases interest over time.
Scenario B: $650,000 single-family home
- Typical buyer closing-cost range at 2% to 5%: $13,000 to $32,500.
- Sample mid-range breakdown
- Lender fees, appraisal, credit: $1,800
- Title and settlement, including lender’s policy and recording: $2,500
- Owner’s title insurance (optional): $3,250
- Prepaids and escrow seed: $3,800
- Property tax proration: $2,200
- HOA or association fees (if applicable): $250
- Inspection, survey, misc.: $1,200
- Estimated total: about $15,000 to $18,000
Negotiation examples
- A 2% seller credit on a $650,000 price equals $13,000 and could cover most buyer closing costs, subject to your loan’s concession limits.
- Some costs can be incorporated into the contract price or covered by the seller, while prepaids are generally paid up front.
Lower your cash due
You have options to reduce what you bring to closing while staying within lender and program rules.
- Negotiate seller concessions to cover allowable closing costs.
- Ask your lender to price a rate with a lender credit to offset certain fees.
- Compare lenders for origination fees and discount point options.
- Confirm whether the seller will cover HOA resale fees or transfer charges.
- Time your closing date with your lender’s guidance to manage prepaid interest and escrow deposits.
- Consider whether an owner’s title policy fits your risk tolerance and budget.
Next steps for buyers
Clarity early on keeps your purchase smooth and on budget.
- Request a written Loan Estimate from your lender to see itemized costs and compare offers.
- Ask a local Mecklenburg County closing attorney or title provider for a customized closing-cost estimate for your specific address.
- Confirm allowable seller concessions for your loan type and decide what to request in your offer.
- If the home has an HOA, ask for the resale or disclosure package fee and delivery timeline.
- Verify how property tax proration will be calculated for your closing date.
- If you are cross-shopping NC and SC, confirm transfer taxes, recording fees, and customary payer for each county.
- Explore any city or county homebuyer assistance that may offer closing-cost help by contacting local housing offices or a HUD-approved counselor.
Ready to price out your Plaza Midwood move and build a plan that protects your budget? Reach out to HomeWithNay. We will walk you through estimates, negotiation strategies, and the steps to a confident closing.
FAQs
What are typical buyer closing costs in Plaza Midwood?
- Most buyers should budget about 2% to 5% of the purchase price for closing costs, separate from the down payment.
How do North Carolina and South Carolina closings differ?
- North Carolina closings are commonly overseen by a closing attorney, while South Carolina closings are more often handled by title or escrow companies, with other fees and customs varying by county.
Can seller credits cover all my closing costs?
- Seller concessions can often cover many buyer costs up to your loan program’s limits, so confirm allowable percentages with your lender before you write the offer.
Is an owner’s title insurance policy required in North Carolina?
- The lender’s policy is typically required when financing, while the owner’s policy is optional but widely recommended for buyer protection.
Which costs are paid before closing in Charlotte?
- You will usually pay for the home inspection up front and may pay for the appraisal before closing, while prepaids and most fees are collected at settlement.
How are Mecklenburg County property taxes handled at closing?
- Expect a proration line item that reimburses the seller for the post-closing period, with the exact amount based on tax rates and your closing date.
