Sticker shock at the closing table is no fun. When you understand buyer closing costs up front, you can plan your budget, negotiate with confidence, and enjoy a smooth path to keys-in-hand. If you are buying in Fuquay-Varina, this guide breaks down what you will pay, what is negotiable, how to estimate your total, and when to lock in each step. Let’s dive in.
Closing costs at a glance
Closing costs are the expenses you pay to get your mortgage and transfer the property into your name. They are separate from your down payment. In most conventional purchases, you can expect buyer closing costs to land around 2 to 5 percent of the purchase price, plus prepaids and escrow deposits.
Lender fees
These are charged by your lender or broker and usually include:
- Origination, processing, and underwriting fees
- Credit report and application fees
- Rate-lock or float-down fees if used
- Discount points if you choose to buy down the rate
You can often shop and compare these costs across lenders. You can also ask about lender credits in exchange for a slightly higher rate.
Third-party services
These are services ordered by you or your lender:
- Appraisal required for the loan
- Home inspections you choose to order
- Survey if required
- Title search and title insurance
- Closing attorney or settlement agent fee
- Recording fees with the Wake County Register of Deeds
- Courier, notary, flood certification, and tax service fees
The lender’s title policy is typically required and paid by the buyer. An owner’s title policy is optional but common. Who pays for the owner’s policy can depend on local custom and what you negotiate.
Government and prepaids
These items are tied to timing and are not negotiable in amount:
- Prepaid interest from closing to your first mortgage payment
- Property taxes prorated as of closing
- Homeowners insurance premium for the first year, plus flood insurance if needed
- Upfront mortgage insurance premiums for certain loan programs
Escrow deposits
Many lenders collect a few months of property taxes and insurance to start your escrow account. This cushion varies with timing and loan type, often 1 to 6 months of each.
Other potential charges
In Fuquay-Varina planned communities, you may see HOA transfer fees or required documents. If the home uses well and septic, certifications may be required. Review these items early so there are no surprises.
Who pays and what you choose
Local custom and your purchase contract drive who orders and who pays. In Wake County, many items follow common practice, but you can negotiate several line items.
Lender fees you can shop
You typically pay origination, underwriting, processing, and the appraisal. These fees vary by lender and can be offset by credits. Compare the full loan cost breakdown, not just the rate.
Third-party choices
- Title and closing: You usually pay for the lender’s title policy. The owner’s title policy may be paid by the seller or buyer depending on local custom and your contract. Selection of the closing attorney or title company can be negotiable.
- Appraisal: Ordered by the lender, paid by you. Rush fees can apply if timelines are tight.
- Inspections: You choose which inspections to conduct and you pay for them.
Government fees
Recording fees and county charges are set by Wake County. You can negotiate which party pays specific items, but the amounts themselves are fixed.
Negotiable items in Wake County
- Seller concessions toward your closing costs, subject to your loan program limits
- Seller payment of the owner’s title policy
- Credits in lieu of repairs found during inspections
- Which party pays certain recording or municipal fees
Estimate your total
A simple rule of thumb helps you plan your cash-to-close.
- Typical buyer closing costs: about 2 to 5 percent of the purchase price
- Prepaids and escrow deposits: often another 0.5 to 2 percent depending on timing
Quick budgeting template
- Baseline estimate: Purchase price × 3 percent.
- Add prepaids:
- Property tax proration based on the closing date
- First-year homeowners insurance or initial premium
- Prepaid interest from closing to your first payment
- Add escrow deposits: Usually 1 to 6 months of tax and insurance escrows.
- Add inspections: Home, pest, radon, and any well or septic checks if needed.
- Add title and recording fees: Ask the closing attorney for a fee quote.
Example method
For a $400,000 home:
- Baseline closing costs (3 percent): $12,000
- Prepaids and escrow cushion: $2,000 to $6,000
- Inspections: $300 to $1,000
- Estimated total, excluding down payment: about $14,300 to $19,000
Your lender’s Loan Estimate will replace these placeholders with your specific numbers.
Timing and disclosures to know
Federal rules require two key disclosures that help you plan and compare.
Loan Estimate (LE)
After you complete a loan application, your lender must provide a Loan Estimate within three business days. The LE outlines your interest rate, loan terms, and good-faith estimates of closing costs. Use it to compare lenders and confirm what charges are lender fees, third-party fees, or prepaids.
Closing Disclosure (CD)
At least three business days before closing, you must receive your Closing Disclosure. The CD shows your final numbers. Review it line by line, verify any changes from the LE, and ask your lender or closing attorney to explain differences.
When to lock and order services
- Apply for your mortgage within a few days of an accepted offer to trigger the LE.
- Lock your rate once you are comfortable with terms and timing.
- The lender will order the appraisal after application. Turn times vary, so schedule early.
- Order inspections right after contract ratification to meet contingency deadlines.
- Engage the closing attorney or title company early so the title search can begin.
- Shop homeowners insurance as soon as the contract is signed. Proof of insurance is required before funding.
Wake County and Fuquay-Varina specifics
While exact fees can change, here is how things typically work locally.
Recording and county fees
Wake County sets recording charges for deeds and deeds of trust. The amounts are fixed by the county. Your closing attorney will quote the current fees and include them on your disclosures.
Property tax proration
Property taxes in Wake County are prorated between buyer and seller based on the closing date and the county billing cycle. Your CD will show a credit or charge reflecting your portion.
HOA and community items
Many Fuquay-Varina communities charge transfer fees or require resale documents. Confirm early who pays these fees in your contract. If the home is in a managed HOA, ask for a list of expected charges.
Utilities and town services
If the property uses town water and sewer, you may have utility transfer steps or final readings coordinated before closing. For homes with private well or septic, check whether certifications are required.
Ways to reduce out-of-pocket costs
You have options to keep cash-to-close in check without sacrificing your goals.
- Shop at least two to three lenders and compare total loan costs and credits
- Request seller concessions within your loan program limits
- Compare title and closing fee quotes if selection is negotiable
- Weigh discount points versus lender credits based on your time horizon
- Schedule your closing date strategically to manage prepaid interest and escrows
- Review your homeowners insurance options to balance coverage and premium
What to do next
Buying in Fuquay-Varina should feel exciting, not complicated. With the right plan, you can forecast your closing costs, negotiate smartly, and avoid last-minute surprises. If you want a personal, local walkthrough of your numbers and strategy, our team is here to help.
Reach out to Cobb Zies & Co for a clear closing cost game plan, local vendor introductions, and step-by-step guidance from contract to keys.
FAQs
How much should a Fuquay-Varina buyer budget for closing costs?
- Plan on about 2 to 5 percent of the purchase price for closing costs, plus 0.5 to 2 percent for prepaids and escrow deposits, then confirm with your lender’s Loan Estimate.
What does the Loan Estimate show and when will I get it?
- Your lender must send the Loan Estimate within three business days of your completed application, showing your rate, terms, and good-faith estimates of all closing costs.
Can a Wake County seller pay some of my closing costs?
- Yes, seller concessions are common within loan program limits, and you can also negotiate items like who pays the owner’s title policy or certain local fees.
Who selects the closing attorney or title company in Fuquay-Varina?
- Selection is guided by your contract and local custom, and buyers often have a say; confirm during negotiations and engage the chosen firm early.
When do I need homeowners insurance for my new home?
- Obtain quotes after your offer is accepted and have the policy bound before closing, since lenders require proof of insurance to fund the loan.
How are Wake County property taxes handled at closing?
- Taxes are prorated between buyer and seller based on your closing date and the county’s billing cycle, and the proration appears on your Closing Disclosure.
What happens if my mortgage rate lock expires before closing?
- You may face re-lock fees or a different rate; talk with your lender early if delays are possible and choose a lock period that covers your timeline.
Do I need an owner’s title policy if the lender’s policy is required?
- The lender’s policy protects the lender only, while an owner’s policy protects your ownership; who pays is negotiable and may follow local custom.
