Closing Costs For Brentwood Homebuyers

Buying in Brentwood is exciting, but the number that really matters on closing day is your cash to close. Many buyers focus only on the monthly payment and feel surprised when they see the final wire amount. You deserve a clear picture of what you will pay and how to plan for it. In this guide, you will learn what closing costs include, how to estimate your cash to close, and smart ways to reduce upfront cash without risking your goals. Let’s dive in.

What closing costs cover

Closing costs are the one-time fees and prepayments due at settlement, separate from your down payment and your monthly mortgage. In Brentwood, where prices are higher than the state and national medians, the dollar amount of closing costs is often larger even when the percentage is the same.

As a general guideline, buyers should expect closing costs of about 2 to 5 percent of the purchase price, with many conventional loans landing near 2 to 3 percent. The final amount depends on your loan type, lender pricing, title and recording charges, inspections, and how much you prepay for taxes and insurance.

Typical costs in Brentwood

Every transaction is unique, but most Brentwood buyers will see the following categories.

Lender and loan fees

• Origination, processing, and underwriting. Often a flat fee or a percentage, commonly about 0.5 to 1.0 percent of the loan amount.
• Discount points. Optional fees paid to lower your rate. One point equals 1 percent of the loan amount.
• Credit report. Usually around 25 to 50 dollars.
• Appraisal. Often 400 to 900 dollars depending on property size and complexity.
• Rate-lock, funding, wire, or courier fees. Modest flat amounts if charged.

Title, escrow, and title insurance

• Title search and settlement fee. Often 300 to 1,200 dollars depending on complexity.
• Lender’s title insurance. Required by the lender and based on the loan amount.
• Owner’s title insurance. Protects your ownership. Cost is based on the purchase price and is negotiable in the contract. In many Southern markets the seller may customarily pay for the owner’s policy, but this is a local custom question to confirm with your title company.
• Recording fees. County charges to record the deed and deed of trust. Typically tens to a few hundred dollars.
• Transfer or deed taxes. These vary by state and county. Ask your title company if any Tennessee or Williamson County transfer taxes apply to your purchase.

Inspections, surveys, and reports

• Home inspection. Commonly about 300 to 600 dollars, with larger homes higher.
• Wood-destroying insect or termite inspection. Often 50 to 200 dollars; sometimes required by certain loans.
• Survey, if needed. Often 300 to 1,000 dollars depending on property size and complexity.
• HOA documents or resale certificate. If the property is in an association, budget 50 to 500 dollars for administrative items.

Prepaids and escrow deposits

These are not fees for services but advance payments your lender collects.

• Prepaid interest. Covers interest from your closing date until your first payment. The amount depends on the day of the month you close and your loan size.
• Homeowners insurance. Lenders usually require the first year paid at or before closing.
• Property taxes. You will pay a prorated share at closing based on local due dates. Your lender may also collect several months of taxes for your escrow account.
• Initial escrow deposits. Lenders typically hold a few months of taxes and insurance. A two-month cushion is common but depends on the lender’s analysis.
• Mortgage insurance. FHA loans require an upfront mortgage insurance premium that can be paid at closing or financed. Conventional loans with less than 20 percent down may have monthly mortgage insurance and sometimes an upfront component.

Other possible items

• HOA initiation or transfer fees.
• Title endorsements for special coverage.
• Attorney fees if your closing uses an attorney by custom.

Estimate your cash to close

Use a simple framework to avoid surprises. Your cash to close equals your down payment plus closing costs plus prepaids and escrow deposits, minus any credits and your earnest money already on deposit.

• Cash to close = Down payment + Closing costs + Prepaids + Escrow deposits – Credits

Follow these steps:

1. Request a Loan Estimate early. Your lender’s Loan Estimate shows projected lender fees, prepaids, and escrow deposits.

2. Add your earnest money deposit. This is a credit on the final statement.

3. Get title and recording figures. Ask your title company to itemize settlement fees and title insurance, and to clarify who is paying the owner’s policy per local custom.

4. Add inspections and surveys. Include items you will pay before closing like a home inspection or survey.

5. Subtract credits. Deduct any negotiated seller concessions and lender credits.

6. Confirm with the Closing Disclosure. You will receive this at least three business days before closing. It shows your final cash to close.

Brentwood examples

The numbers below show how purchase price affects your cash to close.

• Scenario A: Purchase price 400,000 dollars. Down payment 20 percent equals 80,000 dollars. Closing costs at 2.5 percent equal 10,000 dollars. Prepaids and escrow equal 4,000 dollars. Estimated cash to close equals 94,000 dollars before applying earnest money.

• Scenario B: Purchase price 800,000 dollars. Down payment 10 percent equals 80,000 dollars. Closing costs at 3 percent equal 24,000 dollars. Prepaids and escrow equal 8,000 dollars. Estimated cash to close equals 112,000 dollars before credits.

These are illustrative only. Your Loan Estimate and Closing Disclosure provide the real numbers for your situation.

Who pays what locally

In Williamson County, several items are commonly negotiable. Your contract and local custom often determine who pays the owner’s title insurance, some settlement fees, and certain recording or transfer items. In many Southern markets the seller often pays the owner’s title policy, but you should confirm current custom with your title company before you write an offer. Deed and recording fees are typically split based on local practice. Property taxes are prorated at closing according to county schedules.

Reduce upfront cash

You have options to lower your cash to close while keeping your long-term plan on track.

Use seller concessions

When the market allows, request that the seller pay specific closing costs or prepaids. Your loan program will cap concessions. Conventional loan limits vary by down payment. FHA commonly allows up to 6 percent toward buyer costs. VA allows certain concessions and has its own rules. Your lender can outline the limits for your loan.

Compare points and lender credits

You can pay discount points to lower your rate or choose a slightly higher rate in exchange for a lender credit that covers some closing costs. Paying points lowers your monthly payment but raises upfront cost. Lender credits reduce cash to close but increase the monthly payment. Model the break-even based on how long you plan to own the home.

Consider loan-program features

• Conventional. Private mortgage insurance applies with less than 20 percent down, usually as a monthly cost rather than a large upfront charge.

• FHA. Requires an upfront mortgage insurance premium that can be financed into the loan or paid at closing. Allows generous seller-paid costs within program limits.

• VA. Has a funding fee that can be financed and allows seller-paid costs within program rules.

• USDA. Has its own guarantee fee and concession rules.

If you are a first-time buyer, you can also explore state assistance programs. Eligibility, income, and property limits apply. Ask your lender if you qualify for options that can help with down payment or closing costs.

Time your closing date

Closing earlier or later in the month changes prepaid interest. Closing near month-end generally reduces prepaid interest, which can shrink your cash to close by a modest amount.

Ask about title cost custom

If local custom often has the seller paying the owner’s title policy, confirm and negotiate this upfront. That single line item can meaningfully reduce your cash requirement.

Shop lenders and title services

Request at least two Loan Estimates to compare fees, rate options, and credits. Ask your agent to connect you with a trusted local title company to confirm line-item charges before you finalize your offer strategy.

Local details to confirm

For the most accurate estimate, verify these items early in your process:

• Williamson County Register of Deeds. Recording requirements and fees for deed and deed of trust.
• Williamson County Trustee or Assessor. Property tax rates, due dates, and proration method.
• Your title company. Owner’s title policy custom, settlement fees, endorsements, and who pays what in Brentwood.
• Your lender. Loan program limits for seller concessions, mortgage insurance details, and escrow analysis.
• City of Brentwood utilities or billing. Any utility transfer items that impact your move-in budget.

Common pitfalls to avoid

• Looking only at the interest rate. Compare the total cost, including lender fees and any points or credits.
• Forgetting prepaids and escrow. These deposits can be a large piece of your cash to close.
• Assuming the seller will pay certain items. Customs change by neighborhood and market conditions. Put it in the contract.
• Skipping the Loan Estimate and Closing Disclosure review. These documents are your roadmap. Ask questions early.
• Underbudgeting for inspections and HOA items. Estimate these before you write the offer.

Ready to run your numbers?

When you understand closing costs, you can write stronger offers and move forward with confidence. If you want a local, line-by-line estimate tailored to a Brentwood home and your loan program, reach out. Our team pairs deep Williamson County experience with a clear, hands-on process, from first showing to final wire. Connect with Jennifer Bickerstaff for a confidential planning call and a custom cash-to-close worksheet.

FAQs

What are typical buyer closing costs in Brentwood?

• Plan for about 2 to 5 percent of the purchase price, with many conventional loans near 2 to 3 percent. Higher prices mean larger dollar amounts.

What is cash to close and how is it calculated?

• It equals your down payment plus closing costs plus prepaids and escrow deposits, minus any credits and your earnest money already paid.

Who pays for owner’s title insurance in Williamson County?

• It is negotiable and guided by local custom. In many Southern markets the seller often pays it, but confirm with your title company before you write an offer.

When will I know my final wire amount?

• Your lender and title company will issue a Closing Disclosure at least three business days before closing that shows your final cash to close.

Can the seller pay some of my costs?

• Often yes, subject to loan-program limits and current market conditions. Ask your lender for your program’s concession caps.

How can I lower my upfront cash without hurting my plan?

• Consider lender credits in exchange for a slightly higher rate, negotiate seller concessions, confirm title policy custom, and time your closing date to reduce prepaid interest.

What inspections and reports should I budget for?

• Common items include a home inspection, termite inspection if required, a survey if needed, and any HOA documents or transfer fees if the home is in an association.