Feeling unsure about how much you will need at the closing table in Johns Creek? You are not alone. Closing costs can feel mysterious, especially when you are juggling loan terms, inspections, and timelines. In this guide, you will get a clear, no-jargon breakdown of typical buyer costs, what is negotiable, Fulton County specifics, and simple steps to estimate your cash to close with confidence. Let’s dive in.
What closing costs cover in Johns Creek
Closing costs are the one-time fees you pay to finalize a home purchase. They typically cover your lender’s charges, title and settlement services, government recording and mortgage-related taxes, inspections, and prepaid items like insurance and property taxes. If there is a homeowners association, you may also see transfer or estoppel fees.
For most financed buyers, a practical rule of thumb is 2% to 5% of the purchase price for closing costs, not including your down payment. Cash buyers usually pay less because there are no lender fees. Your exact total depends on your loan program, contract negotiations, local taxes and fees, and your closing date.
Typical buyer costs at a glance
- Loan-related charges: origination or lender fees, optional discount points, credit report, and underwriting. Points are optional prepaid interest, usually priced at 1% of the loan per point.
- Appraisal: usually required by lenders. Expect roughly $400 to $800 depending on property type and market.
- Title insurance and settlement: lender’s title policy is typically buyer-paid; owner’s title policy is negotiable by local custom and contract. Settlement or closing fees often run $300 to $800.
- Government and recording: recording fees for the deed and mortgage are modest, plus Georgia mortgage-related filing taxes. Amounts vary by fee schedule.
- Inspections: a general home inspection commonly ranges $300 to $700. Specialty inspections, like pest, radon, sewer scope, or HVAC, can range from $75 to $600 each.
- Survey: if requested by the lender or by you, plan for about $300 to $1,000.
- Prepaids and escrow: prepaid interest from your closing date to month-end, first-year homeowner’s insurance, and initial escrow deposits. Lenders often collect 2 to 6 months of property taxes and insurance to fund your escrow.
- HOA items: transfer or move-in fees and prorated dues if applicable. The payer is determined by the contract and association rules.
- Other: optional home warranty often costs $300 to $700. Buyer brokerage commissions are typically paid by the seller by local custom.
Georgia and Fulton County details
Mortgage and recording taxes
Georgia collects mortgage-related filing and recording taxes on new loans. Buyers typically pay these when financing a purchase. You can review state rules on the Georgia Department of Revenue’s intangible recording tax page. Local recording fees are set by the county. For Johns Creek purchases, the Fulton County Clerk of Superior Court posts real estate recording information on the Clerk’s official site.
Property taxes and prorations
Property taxes are billed by Fulton County and vary based on county, municipal, and school levies. At closing, taxes are prorated between buyer and seller based on the closing date and the contract terms. For current tax bill details and payment timing, check the Fulton County Tax Commissioner’s property tax information.
HOAs and transfer fees
Many Johns Creek neighborhoods include HOAs. Transfer fees, estoppel letters, and proration of dues are common. Who pays is negotiable and sometimes defined by HOA rules, so confirm in your contract and with the association.
Owner’s title insurance custom
Who pays for the owner’s title policy can vary across the Atlanta metro. In Fulton County, it is often negotiable. Ask your agent and title company for local quotes so you can decide what to request in your offer.
What changes who pays
Contract negotiation
Your purchase contract controls who pays what. You might ask the seller to contribute a fixed dollar amount or a percentage toward your closing costs. Georgia Association of REALTORS forms often include clear language for concessions, prorations, and fee splits. Make sure the concession amount and allowed uses are spelled out.
Lender program limits
Seller-paid credits are subject to loan program rules. For example, FHA often allows up to 6% of the purchase price toward buyer costs. Conventional and VA loans have their own limits and definitions of eligible concessions. Your lender will confirm the cap and which items can be covered.
Cash versus financed purchases
Cash buyers avoid lender fees, mortgage-related filing taxes, appraisals required for underwriting, and initial escrow deposits. You will still see title, recording of the deed, inspections, and any HOA or negotiated items. Financed buyers will typically be in the 2% to 5% range for closing costs, while cash buyers often land closer to 0.5% to 2%, depending on services and inspections.
How to estimate your cash to close
Start with price. Use your target purchase price or a realistic range for Johns Creek.
Apply a rule of thumb. For financed purchases, use 2% to 5% of the price as a working estimate for closing costs. For cash, use about 0.5% to 2%.
Add prepaids. Include your first-year homeowner’s insurance premium, prepaid interest from closing to month-end, and initial escrow deposits for taxes and insurance. Lenders often collect 2 to 6 months of escrow.
Include flat fees. Add typical appraisal, inspection, survey, and recording fees. Ask a local title company for a fee sheet and your lender for a preliminary estimate.
Subtract seller credits. If you negotiate a seller concession, deduct that amount from your estimate. Confirm the credit meets your loan program rules.
Confirm with official disclosures. Your lender must provide a Loan Estimate within three business days of application. You will receive a Closing Disclosure at least three business days before closing.
Quick examples
- Financed buyer, $500,000 purchase: 2.5% closing costs ≈ $12,500. Prepaids such as first-year insurance ($1,200), initial escrow (3 months of taxes and insurance, about $2,500), and prepaid interest ($400) add roughly $4,100. Estimated cash to close, excluding down payment, is about $16,600 before any seller credits.
- Cash buyer, $500,000 purchase: with no lender fees, you might see $2,000 to $6,000 for title, recording, and inspections, plus prorations or HOA items as applicable.
Timeline and what to expect
- Loan Estimate: Your lender must deliver it within three business days of your application. Use it to compare fees and terms across lenders.
- Closing Disclosure: You must receive it at least three business days before closing. Review every line item and ask your lender and settlement agent to explain any changes.
- Settlement statement: The title or closing agent will provide a preliminary breakdown shortly before closing that reflects prorations and seller credits.
What to have ready
- Photo ID and final funds for closing.
- Proof of funds for your down payment and closing costs.
- Signed loan application and requested documents from your lender.
- Homeowner’s insurance binder ready for closing.
- HOA contacts and documents if the property is in a community association.
- Your lender, title company, and agent’s contact info for questions and last-minute confirmations.
Get local guidance and negotiate smart
The right strategy can reduce your cash to close and avoid surprises. From pricing out inspections to structuring seller credits that meet lender rules, you want a plan that fits Johns Creek and Fulton County norms. If you are comparing loan programs, reviewing title quotes, or deciding what to request in your offer, having a trusted local advisor matters.
If you want a clear estimate tailored to your budget and timeline, reach out for help. Connect with Jamie Mock to map out your numbers, secure strong terms, and close with confidence.
FAQs
How much should a Johns Creek buyer budget for closing costs?
- For financed purchases, plan on about 2% to 5% of the purchase price, plus prepaids like insurance and escrow deposits; cash buyers often land around 0.5% to 2%.
Who usually pays the owner’s title insurance in Fulton County?
- It varies by deal and local custom. The owner’s policy is negotiable in the contract, so confirm expectations with your agent and title company and reflect it clearly in the offer.
What Fulton County taxes or fees apply to new mortgages?
- Expect Georgia’s mortgage-related filing tax and local recording fees. Review the state intangible recording tax overview and check the Fulton County Clerk’s site for recording information.
When will I see my final closing numbers as a buyer?
- Your lender must provide a Closing Disclosure at least three business days before closing, and the settlement agent will provide a final statement showing prorations and credits.
Do seller-paid concessions cover all buyer costs?
- They help, but they are limited by your loan program and must be written into the contract with a clear dollar cap or percentage. Ask your lender to confirm the maximum allowed and eligible uses.
