What will you really pay at the closing table in Spartanburg? If you are budgeting for a home, the final numbers can feel confusing. You want a clear picture of typical fees, who usually pays what, and where to verify local amounts. In this guide, you will learn the main cost categories, Spartanburg and South Carolina specifics, and smart ways to plan and reduce your out-of-pocket. Let’s dive in.
What closing costs are
Closing costs are the one-time fees and prepaids you pay to finalize a home purchase, not including your down payment. As a starting point, budget roughly 2% to 5% of the purchase price. Actual amounts depend on your loan program, purchase price, timing, and negotiation.
Typical buyer fees and ranges
Below are common line items you may see. Local amounts vary by provider and property.
- Lender fees: origination, application, processing, or underwriting, often 0.5% to 1.5% of the loan amount, or a fixed amount of about $500 to $3,000.
- Discount points: optional, usually 0% to 2% of the loan per point if you choose to buy down the rate.
- Appraisal: typically $300 to $700 for a standard single-family home.
- Credit report: about $25 to $50.
- Title insurance and settlement: combined owner’s and lender’s title insurance often ranges from about 0.3% to 1.0% of the purchase price, plus title search and settlement or closing fees that are commonly $300 to $1,000.
- Recording fees: county charges to record the deed and mortgage. Expect a modest amount, often tens to a few hundred dollars. Confirm current fees with the Spartanburg County Register of Deeds.
- Transfer taxes or stamps: some areas charge documentary stamps or transfer fees. Confirm whether any apply to your deal with county offices or your closing provider.
- Escrow deposits: lenders often collect about 2 months of property taxes and 2 months of homeowner’s insurance to set up your escrow account.
- Prepaid interest: covers interest from the closing date to your first payment, typically a few hundred dollars or more depending on loan size and timing.
- Homeowner’s insurance: many buyers pay the first year’s premium at closing. Amount depends on your coverage and property.
- Property tax proration: you and the seller share taxes based on the closing date and local billing cycles.
- HOA fees and estoppel letters: if applicable, plan for transfer or processing fees that can be $100 to $500 or more.
- Inspections: general inspection $300 to $600; radon $100 to $250; termite or pest $50 to $200; septic or sewer $200 to $600, if applicable.
- Survey: if required, often $300 to $900.
- Settlement or attorney fees: South Carolina closings are often handled by attorneys or title companies. Fees vary by provider.
- Program-specific fees: FHA has an upfront mortgage insurance premium, historically about 1.75% of the loan. VA and USDA loans have program-specific funding or guarantee fees that are often financed or paid at closing.
For a simple illustration, a $200,000 purchase often results in about $4,000 to $10,000 in total buyer closing costs when you include prepaids and escrow deposits. Your actual figure will depend on your loan terms, provider quotes, and timing.
Spartanburg and South Carolina specifics
- Attorney or title company closings: In South Carolina, a closing attorney or title company commonly handles settlement. Get a written estimate from your chosen provider.
- Recording and deed fees: Spartanburg County Register of Deeds sets recording fees and formatting requirements. Contact the office for current per-page and document fees.
- Property taxes: The Spartanburg County Assessor provides assessed values, and the Treasurer or Tax Collector handles billing. Taxes are typically prorated at closing based on the date you take ownership.
- Local custom on who pays what: Customs shift with market conditions. In many transactions sellers may pay for owner’s title insurance and real estate commissions, but it is negotiable. Confirm current practice with your closing provider and agent for your neighborhood and price point.
- Check local extras: Ask early about HOA transfer fees, municipal or utility setup costs, and any county conveyance taxes or documentary stamps that may apply.
Loan type differences that change your costs
Conventional loans
- Expect similar categories at 2% to 5% of the purchase price.
- Seller concessions are allowed within program limits and your down payment tier.
- You can often use lender credits to reduce upfront fees in exchange for a slightly higher rate.
FHA loans
- Similar closing items plus an upfront mortgage insurance premium, historically about 1.75% of the loan. This is often financed into the loan or paid at closing.
- Seller concessions are generally permitted, often up to 6% of the price. Your lender will confirm current limits.
VA loans
- A one-time funding fee may apply depending on your service, down payment, and exemption status. It is often financed.
- VA limits certain fees and how they are paid. Your lender and closing attorney will outline what is allowed.
USDA loans
- An upfront guarantee fee and an annual fee apply. The upfront fee can often be financed.
- Seller concession rules differ by program. Ask your lender for the current requirements.
Cash purchases
- You avoid lender fees, escrow setup, and required appraisals.
- You still pay title, settlement or attorney, recording, inspections, survey if needed, and tax proration.
New construction and special situations
- Builder closings: Builders sometimes offer incentives to cover part of your closing costs if you use their preferred lender and closing team. You may also see warranty or impact fees.
- Short sales, foreclosures, and auctions: These can include nonstandard fees, HOA liens, or title curative work. Budget extra time and potential legal or settlement costs.
How to estimate your cash to close
- Start with 2% to 5% of the price as a planning range.
- Get a Loan Estimate from your lender that lists lender fees, prepaid interest, and escrow deposits.
- Ask a local closing attorney or title company for a written title and settlement quote.
- Add inspections you expect to order out of pocket, like general, termite, radon, and septic.
- Consider optional discount points only if the breakeven period makes sense for your timeline.
- For context, on a $200,000 purchase, total buyer closing costs commonly fall in the $4,000 to $10,000 range once you include prepaids and escrow deposits. Your numbers will be unique to your loan and property.
Timeline and what to bring
Key disclosure deadlines
- Your lender provides a Loan Estimate shortly after application.
- You will receive a Closing Disclosure at least 3 business days before closing. Review it carefully and compare it to your Loan Estimate. Ask about any differences.
Cash to close checklist
- Government-issued photo ID for all signers.
- Wire or certified funds for the final amount on your Closing Disclosure. Verify wire instructions directly with your closing attorney or title company using a trusted phone number.
- Proof of homeowner’s insurance binder, naming the lender if required.
- Any documents needed to credit your earnest money deposit.
Wire safety tips
- Confirm wire instructions by phone with your closing agent before sending funds.
- Do not rely on emailed instructions without independent confirmation.
- Call a known, verified number from the closing provider’s official site or your prior communications.
Who pays what and how to lower costs
Typical allocations in Spartanburg
- Owner’s title insurance: Sellers may pay in many transactions, but this is negotiable.
- Lender’s title policy and settlement fees: Usually a buyer expense, subject to negotiation.
- Property tax proration: Shared based on the closing date, with the buyer responsible from that date forward.
- HOA transfers and estoppel letters: Amounts vary by association. Confirm early to avoid surprises.
Negotiation levers and credits
- Ask for seller-paid closing costs within your loan program’s concession limits.
- Compare quotes among lenders and closing attorneys for interest rates, lender fees, and title or settlement costs.
- Consider lender credits that reduce upfront costs in exchange for a higher interest rate.
- Ask the seller for a recent survey or to complete specific repairs instead of contributing cash.
Practical next steps for Spartanburg buyers
- Request a Loan Estimate and ask your lender to itemize any program-specific fees.
- Get an itemized title and settlement estimate from a Spartanburg closing attorney or title company.
- Contact the Spartanburg County Register of Deeds for current recording fees and the Treasurer or Assessor for assessed values and tax rates.
- Decide whether to request seller-paid closing costs and confirm allowable amounts with your lender.
- Verify wiring instructions independently with your closing agent within 24 to 48 hours of sending funds.
- Review your Closing Disclosure at least 3 business days before closing and ask about any variances.
You deserve a smooth closing with no last-minute surprises. If you want a clear plan for cash to close, help negotiating seller concessions, and coordination with trusted local lenders and closing attorneys, connect with Victor Lester. Our team brings experience, strong negotiation, and steady communication to get you to the finish line confidently.
FAQs
How much should I budget for closing costs in Spartanburg?
- Budget about 2% to 5% of the purchase price as a starting point, then get a Loan Estimate and a title or settlement quote for precise numbers.
Who usually pays for title insurance in Spartanburg?
- Customs vary by market and negotiation; in many transactions the seller may pay for the owner’s policy, but this is negotiable.
Are property taxes prorated at closing in Spartanburg County?
- Yes, property taxes are typically prorated between buyer and seller based on the closing date; confirm details with the Treasurer’s office.
Can a seller pay my closing costs with my loan type?
- Often yes through seller concessions, but limits depend on your loan program and down payment; ask your lender for current caps.
Do I bring a cashier’s check or wire funds for closing?
- Wires are common for final funds and cashier’s checks are sometimes accepted; verify instructions directly with your closing agent and confirm by phone.
What if my Closing Disclosure is higher than my Loan Estimate?
- Some cost changes are allowed, but material increases may require re-disclosure and an additional waiting period; ask your lender and settlement agent to explain differences.
Are inspections considered closing costs?
- Inspections are usually ordered and paid before closing, so they are not paid through lender funds, but they are part of your total transaction expenses.
Will there be HOA transfer fees at closing?
- Many associations charge transfer or estoppel fees and prorate dues; ask for the HOA’s documentation early to estimate amounts.
