Are you trying to figure out how much cash you’ll need to close on a home in Franklin? You’re not alone. Closing costs can be confusing, and the totals in Williamson County often feel higher because local home prices are above the state and national median. In this guide, you’ll learn what buyers typically pay, how costs are split locally, and smart ways to plan and save. Let’s dive in.
Closing costs in Franklin: the basics
Closing costs are the fees and prepaids you pay to finalize your purchase, separate from your down payment. In many cases, buyer closing costs run about 2% to 5% of the purchase price, plus another 1% to 3% for prepaids and escrow deposits. Your total cash to close is your down payment plus closing costs and prepaids.
Because Franklin and greater Williamson County have higher home prices, the dollar amount of those percentages adds up quickly. The percentages may match national norms, but the totals can be larger here.
Who pays what locally
In Middle Tennessee, closings are typically handled by title companies, closing agents, and title attorneys. Tennessee does not require an attorney in every transaction. Who pays which fee is negotiable in the contract, though local custom influences expectations.
One example is title insurance. In many Southern markets, sellers often pay for the owner’s title insurance policy, while buyers pay for the lender’s policy. That said, this is negotiable and should be confirmed in the purchase agreement and with your title company.
Buyer cost line items to expect
Below are common fees you may see on your Loan Estimate and Closing Disclosure. Not every transaction includes every item, and amounts vary by lender, title company, and loan program.
Loan fees
- Loan origination or lender fee, often 0.25% to 1.0% of the loan amount
- Discount points to buy down your interest rate, optional and capped by loan program rules
- Underwriting and processing fees
- Credit report fee
Inspections
- General home inspection, often $300 to $700 or more depending on size
- Wood-destroying insect (termite) inspection, often required and typically $50 to $200
- Septic, sewer, radon, mold, or other specialty inspections as needed
Valuation and survey
- Appraisal, commonly required for financed purchases and often $400 to $900
- Survey if required by lender or requested for peace of mind
Title and closing
- Title search and exam to verify ownership and check for liens
- Title insurance premiums: owner’s policy and lender’s policy based on purchase price and loan amount
- Settlement or escrow closing fee charged by the title company
Government and county charges
- Recording fees for the deed and deed of trust (mortgage) with the Williamson County Register of Deeds
- Any state or county transfer or recording taxes that apply
Prepaids and escrow deposits
- First year of homeowners insurance paid at closing
- Prepaid mortgage interest from your closing date to the start of your first payment
- Initial escrow deposits, often 2 to 3 months of property taxes and insurance
- Property tax proration between buyer and seller, based on the county’s tax calendar and your closing date
HOA and condo items
- HOA transfer, estoppel, or resale certificate fees set by the HOA
- Prorated HOA dues based on the closing date
Other possible costs
- Wire, courier, and notary fees
- Endorsements and administrative fees from the title company as applicable
Examples: how cash to close adds up
These scenarios are for illustration only. Your lender and title company will provide exact figures based on your contract and loan.
Example A: Purchase price $500,000
- Down payment 10% = $50,000
- Buyer closing costs at 2.5% = $12,500
- Prepaids and escrow deposits at 1.5% = $7,500
- Estimated cash to close = $70,000
Example B: Purchase price $800,000
- Down payment 20% = $160,000
- Buyer closing costs at 2.5% = $20,000
- Prepaids and escrow deposits at 1.5% = $12,000
- Estimated cash to close = $192,000
These examples show why planning matters in Franklin. Even small percentage differences can translate into meaningful dollars at higher price points.
Ways to reduce out-of-pocket costs
You have options to manage your cash to close. Talk with your lender and agent about what fits your goals.
- Negotiate seller concessions to cover some closing costs, subject to FHA, VA, or conventional loan limits.
- Explore lender credits in exchange for a slightly higher interest rate.
- Consider discount points if you plan to stay long enough to benefit from a lower rate.
- Choose a closing date that helps manage prepaid interest and escrow funding.
- Shop homeowners insurance to find competitive coverage and premiums.
Timeline and key documents
Early in the process, your lender will issue a Loan Estimate that outlines your projected costs. Before closing, you will receive a final Closing Disclosure at least three business days in advance. Compare the two side by side and ask questions about any changes. Your title company can also provide a preliminary estimate that includes title premiums and county recording fees.
Williamson County specifics to confirm
- Recording fees and transfer taxes. The Williamson County Register of Deeds sets the official fee schedule. Your title company will calculate exact recording fees for the deed and deed of trust.
- Property tax timing and proration. The Williamson County Trustee publishes the tax calendar. Because billing cycles and due dates affect proration, your contract date will determine who owes what at closing.
- Title insurance premiums. These are set based on purchase price and loan amount, with state-regulated filings. Your title company can quote exact premiums.
- Local custom on payers. While sellers often pay the owner’s title policy in many Southern markets, it is negotiable. Confirm the allocation in your purchase contract.
Franklin buyer checklist
Use this quick plan to prepare your budget and timeline.
- Request a written Loan Estimate from any lender you are considering. Compare origination, points, and any credits.
- Ask your title company for an itemized estimate that includes title premiums and Williamson County recording fees.
- Budget for prepaids: first-year insurance, prepaid interest, and your initial escrow deposit.
- Plan for inspections and the appraisal. These are often paid before closing and may not be reflected in your final Closing Disclosure.
- Discuss seller concessions with your agent. Confirm the maximum allowed by your loan program.
- Verify HOA transfer fees, resale certificate costs, and proration of dues if applicable.
- Confirm wire instructions directly with the closing agent and note any wire or courier fees.
Work with a local guide you trust
A smooth closing starts with clear expectations and a team that knows the Franklin market. With decades of Williamson County experience and a relationship-first approach, our team helps you plan your cash to close, negotiate smart concessions, and navigate title and tax details with confidence. If you’re exploring a purchase in Franklin or nearby communities, connect with Jennifer Bickerstaff to get a clear, personalized closing-cost estimate and a step-by-step plan.
FAQs
How much are buyer closing costs in Franklin?
- Most buyers should plan for about 2% to 5% of the purchase price for closing costs, plus 1% to 3% for prepaids and escrow deposits.
Can the seller pay my closing costs in Williamson County?
- Yes, seller concessions are negotiable and allowed within loan program limits, which vary for FHA, VA, and conventional loans.
Who typically pays for title insurance in Middle Tennessee?
- It depends on local custom and your contract; sellers often pay the owner’s policy in many Southern markets, while buyers pay the lender’s policy.
What are the biggest buyer cash items at closing?
- Your down payment, lender fees, title insurance premiums, escrow deposits for taxes and insurance, appraisal, and required inspections.
Where do I find exact dollar amounts for my closing?
- Your lender’s Loan Estimate and the title company’s itemized estimate will provide precise figures based on your purchase price, loan amount, and closing date.
