Feeling unsure about what you will actually pay at the closing table in Franklin? You are not alone. Closing costs can feel confusing, especially when different loans and local fees are involved. In this guide, you will learn what buyer closing costs include, how your loan type changes them, a simple way to estimate cash to close, and what to check locally in Franklin and Williamson County. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, prepaid items, and escrow reserves you pay in addition to your down payment.
Common buyer-facing items:
- Lender fees
- Origination or processing fee
- Underwriting, credit report, and appraisal
- Rate-lock fee if applicable
- Third-party settlement services
- Title search and title insurance (owner and lender policies)
- Settlement or closing fee and notary
- Attorney fees where applicable
- Government and recording fees
- Recording for deed and mortgage
- Transfer or documentary taxes if applicable
- Prepaid items and escrow reserves
- Prepaid mortgage interest from funding to first payment
- Property taxes, prorations, and any required tax escrow
- Homeowners insurance first-year premium or escrow
- HOA dues or transfer fees if applicable
- Mortgage insurance or upfront loan charges
- FHA upfront mortgage insurance premium (UFMIP)
- VA funding fee if applicable
- Private mortgage insurance (PMI) for some conventional loans
- Miscellaneous
- Survey, pest inspection, flood certificate, courier
Who pays what can vary. Buyers typically pay most lender and third-party fees. Sellers usually pay real estate commission, and they may contribute to buyer costs through negotiated concessions. Your purchase contract and loan program set the final rules.
How your loan type changes costs
Your loan program affects both upfront and ongoing costs. For exact details and current requirements, review lender disclosures and official program resources.
Conventional loans
- You typically pay lender fees, appraisal, title, and prepaids.
- If you put less than 20 percent down, PMI may apply as a monthly premium or a single upfront option.
FHA loans
- FHA loans include an upfront mortgage insurance premium. You can pay it at closing or roll it into the loan amount. Check HUD.gov for current program guidance.
- Appraisal and property standards can add steps that affect timing and fees.
VA loans
- No PMI, but most buyers pay a VA funding fee unless exempt. See the VA’s page on funding fees and closing costs for current details: VA funding fee and closing costs.
USDA and jumbo loans
- USDA loans include a guarantee fee and program-specific appraisal or inspection requirements.
- Jumbo loans can carry higher appraisal, underwriting, and title costs. Reserve and down payment requirements are often larger.
For program differences and how they appear on your disclosures, review the CFPB’s explanations of the Loan Estimate and Closing Disclosure.
Estimate your cash to close
A practical estimate uses a simple formula:
Down payment + closing costs + prepaids and escrow + any upfront loan charges − credits = estimated cash to close
Follow this step-by-step checklist:
- Start with the agreed purchase price.
- Subtract any earnest money you already paid.
- Add your down payment amount.
- Estimate closing costs. As a planning rule of thumb, buyers often see about 2 to 5 percent of the purchase price, depending on loan type, price point, and local fees.
- Add prepaids and escrow deposits:
- Prepaid interest from funding date to your first payment
- Homeowners insurance (first year or escrow deposit)
- Property tax proration and any initial escrow required by your lender
- HOA dues and possible transfer fees
- Add program-specific upfront charges such as FHA UFMIP or the VA funding fee if applicable.
- Subtract any seller concessions or lender credits.
- The result is your estimated cash to close.
For precision, request a Loan Estimate from your lender and a preliminary title quote from your title company. The Loan Estimate is delivered within three business days of application. Your final numbers will appear on the Closing Disclosure, which you receive three business days before closing.
Franklin and Williamson County specifics
Local practices and timelines can change certain line items. Here is what to confirm early in your Franklin purchase:
- Recording and document fees. Contact the Williamson County Register of Deeds for current recording fees and required forms.
- Property taxes. Check the Williamson County Trustee for billing schedules and the Williamson County Assessor for assessed values and tax rates. In the City of Franklin, municipal taxes may also apply.
- State transfer taxes. Review guidance from the Tennessee Department of Revenue on any state-level documentary or transfer taxes that may apply.
- Title insurance. Ask a local title company for a preliminary title quote that lists both owner and lender policy premiums and any settlement fees.
- Prorations and escrows. Confirm how property tax prorations are calculated and whether your lender requires an initial escrow deposit at closing.
- HOA fees. Request an HOA statement for dues, transfer fees, and any other move-in charges.
Local custom can vary on who pays certain items. Many Tennessee sellers pay the real estate commission. Other fees are negotiable and should be addressed in your contract.
Sample buyer scenarios in Franklin
These planning examples illustrate how the math can work. Your numbers will vary based on your loan, title quote, taxes, and negotiated credits.
$350,000 purchase
- Closing costs at 2 percent: about $7,000; at 5 percent: about $17,500
- Example 5 percent down payment: $17,500
- Prepaids and escrow: about $2,000 to $6,000
- Estimated cash to close: about $26,500 to $41,000
$600,000 purchase
- Closing costs at 2 percent: about $12,000; at 4 percent: about $24,000
- Example 10 percent down payment: $60,000
- Prepaids and escrow: about $3,000 to $8,000
- Estimated cash to close: about $75,000 to $92,000
$1,000,000 purchase
- Title premiums, appraisal, and lender fees often rise in dollar terms
- Down payment and reserve requirements are typically larger
- Expect higher escrow deposits, especially for insurance and taxes
Use these only as a starting point. Replace estimates with your Loan Estimate and title quote for accuracy.
Ways to lower cash to close
You have options to manage your cash requirement.
- Negotiate seller concessions. Within program limits, a seller can credit part of your closing costs. This must be written into the contract.
- Ask about lender credits. You may trade a slightly higher rate for credits that reduce upfront costs.
- Time your closing date. Closing later in the month can reduce prepaid interest.
- Shop services. Some lender and settlement fees can be shopped or negotiated. Title service fees may vary by provider.
- Consider PMI structure. With conventional loans, compare monthly PMI versus single-premium options to balance monthly payment and cash to close.
Quick checklist for exact numbers
Gather these items and contacts to lock in a real estimate.
- Request from your lender:
- Loan Estimate within three business days of application
- A fees worksheet outlining prepaids and any upfront charges
- Request from your title company:
- Preliminary title commitment and itemized title quote
- Estimated recording fees and settlement charges
- Confirm with local offices:
- Williamson County Register of Deeds for recording fees
- Williamson County Trustee and Assessor for tax schedules and rates
- Tennessee Department of Revenue for transfer tax guidance
- Ask your agent and HOA:
- HOA statement, dues, and any transfer fees
- Contract terms for seller concessions and who pays which fees
Ready for a personalized estimate?
If you are exploring Franklin, Brentwood, or nearby neighborhoods, you deserve clear numbers and a calm path to closing. With design-savvy guidance and builder-informed advice, you will understand each line item and how to negotiate the best outcome. For a personalized cash-to-close estimate and a step-by-step plan, connect with Raven Robinson.
FAQs
What are typical buyer closing costs in Franklin, TN?
- A planning range of about 2 to 5 percent of the purchase price is common, but your actual costs depend on loan type, title fees, taxes, HOA, and any credits. Replace estimates with a lender’s Loan Estimate and a title quote.
How do the Loan Estimate and Closing Disclosure help me?
- The Loan Estimate outlines projected costs within three business days of application. The Closing Disclosure shows final numbers and must be delivered three business days before closing. See the CFPB’s guides to the Loan Estimate and Closing Disclosure.
Can a seller pay my closing costs in Tennessee?
- Often yes, within loan program limits. These seller concessions must be negotiated in your purchase contract and approved by your lender.
How do PMI, FHA UFMIP, or the VA funding fee affect cash to close?
- Conventional loans may include PMI if you put less than 20 percent down. FHA loans include an upfront mortgage insurance premium that can be paid at closing or financed. VA loans do not have PMI, but a funding fee often applies unless exempt.
Do I still need cash if some fees are rolled into the loan?
- You may be able to finance certain charges, but some fees, prepaids, and escrows must be paid at closing. Your lender will confirm what can be financed and what must be paid in cash.
