How much cash will you actually need to close on a home in Raleigh? If you are like most buyers, you want zero surprises on closing day. In this guide, you will see every typical fee, how those costs work in Wake County, and example totals at different price points so you can plan with confidence. Let’s dive in.
What “cash to close” includes
Your cash to close is more than the down payment. It combines your down payment, closing costs, prepaid items like insurance and taxes, and your initial escrow deposits. These pieces add up.
As a rule of thumb, plan for an additional 2% to 5% of the purchase price for closing costs and prepaids. The exact number depends on your loan, the property, and your closing date.
Lenders provide two key documents that itemize these costs: a Loan Estimate after you apply and a Closing Disclosure before you close. Review both line by line with your lender and closing attorney.
Raleigh buyer closing costs, line by line
Below are the most common items you will see. Dollar figures are estimates to help you budget.
Lender fees
- Origination or application fee: typically 0.5% to 1.0% of the loan amount. Some lenders use a flat fee.
- Discount points: 0 to 2% of the loan amount if you choose to buy down your rate. Optional.
- Underwriting and processing: about $300 to $900 total.
- Credit report: about $25 to $60.
- Rate-lock fee: sometimes $100 to $500 if charged separately.
- Mortgage broker fee: varies by lender and structure.
- Program-specific upfront charges: FHA, VA, and USDA loans may include an upfront fee. See the loan-type section below.
Third-party services
- Appraisal: about $400 to $800 for a typical single-family home. Complex properties can be higher.
- Home inspection: about $300 to $700 for a general inspection. Specialty inspections like pest, radon, roof, sewer, or septic can add $75 to $600 each depending on scope.
- Survey: about $300 to $1,000+ if required or requested.
- Flood determination: about $10 to $30.
- Escrow or closing fee: often $300 to $800, paid to the title company or closing attorney. Whether this is split or paid by one side depends on local custom and your contract.
Title, escrow, and title insurance
- Lender’s title insurance policy: a one-time premium based on your loan amount. Most lenders require it.
- Owner’s title insurance policy: a one-time premium based on your purchase price. Optional but strongly recommended to protect your ownership. In many North Carolina markets, sellers sometimes pay the owner’s policy, but customs vary by county and by contract.
- Title search and settlement fees: often $200 to $700, depending on the title company or attorney and property details.
Government and recording costs in Wake County
- Wake County recording fees: charged by the Wake County Register of Deeds to record your deed and deed of trust. Expect a total in the low hundreds for both documents, based on the county’s current fee schedule.
- Transfer or documentary taxes: practices vary by state and county, and who pays can be set by local custom or contract. Confirm how your contract handles any transfer taxes.
- Property tax proration: property taxes are prorated at closing. You will see a line item that covers your share based on the closing date and the county billing cycle.
Prepaids and escrow deposits
- Homeowners insurance: many buyers pay the first year’s premium at closing. Costs range widely based on coverage and the home.
- Property tax escrow: many lenders collect 2 to 3 months of property tax reserves at closing.
- Insurance escrow: many lenders collect 1 to 2 months of reserves.
- Mortgage insurance: FHA has an upfront mortgage insurance premium if not financed. Conventional PMI is usually monthly, though single upfront options exist.
- Prepaid interest: interest due from your closing date to the first payment date. Closing early in the month typically increases this number.
HOA, municipal, and utility items
- HOA transfer or administrative fee: often $100 to $500 on condo or HOA properties. Some associations also require a capital contribution.
- City and utility connection fees: Raleigh and nearby towns may charge setup or meter fees. These are usually outside lender closing costs but can be due right away.
- Septic or well inspections: more common in the outskirts of Wake County. Your lender or inspector may recommend them based on the property.
Optional or contingency costs
- Repairs after inspection: sometimes handled through a repair credit or a contractor estimate. In some cases, a repair escrow holdback is used.
- Rate-lock extension: a fee may apply if your closing is delayed beyond the lock period.
- Additional due diligence: boundary surveys, environmental checks, or specialty consultants if needed.
How loan type changes your costs
Your loan program can shift both your upfront and monthly costs. Always ask your lender for a program-specific Loan Estimate to compare.
Conventional
- Private mortgage insurance may apply if you put less than 20% down. This is usually a monthly cost, though some lenders offer an upfront or split-premium option.
- Seller concessions are allowed within program limits that can range from about 3% to 9%, depending on your down payment and occupancy. Your lender will confirm current limits.
FHA
- Upfront mortgage insurance premium is typically 1.75% of the loan amount. Many buyers finance this cost into the loan, though you can pay it at closing.
- Monthly mortgage insurance also applies. Seller contributions are often allowed up to 6% for eligible items, subject to current FHA rules.
VA
- A one-time VA funding fee applies, with the amount based on your service history, down payment, and first-time or subsequent use. Many buyers roll it into the loan.
- No PMI and no down payment required for eligible borrowers. You still have closing costs, and the VA appraisal process is similar in cost to a conventional appraisal.
USDA
- USDA guaranteed loans include an upfront guarantee fee and an annual fee. The upfront fee can often be financed into the loan.
- Seller concessions are permitted within USDA rules. Your lender will confirm current limits and how the fees apply to your purchase.
Examples: what buyers might pay
The numbers below are estimates, not quotes. They show how totals can assemble at different price points in Wake County.
Example: $300,000 purchase, 10% down (Conventional)
- Down payment: $30,000
- Loan amount: $270,000
- Estimated lender and third-party fees: $4,000 to $6,000
- Title, escrow, and recording: $1,200 to $2,000
- Prepaids and escrows: $3,000 to $5,000
- Estimated total closing costs, excluding down payment: about $8,000 to $13,000
- Estimated cash to close: about $38,000 to $43,000
Example: $600,000 purchase, 20% down (Conventional)
- Down payment: $120,000
- Loan amount: $480,000
- Estimated lender and third-party fees: $6,000 to $10,000
- Title, escrow, and recording: $1,800 to $3,500
- Prepaids and escrows: $4,000 to $8,000
- Estimated total closing costs, excluding down payment: about $12,000 to $21,500
- Estimated cash to close: about $132,000 to $141,500
Example: $1,000,000 purchase, 5% down (Conventional)
- Down payment: $50,000
- Loan amount: $950,000
- Estimated lender and third-party fees: $10,000 to $20,000
- Title, escrow, and recording: $3,000 to $6,000
- Prepaids and escrows: $8,000 to $20,000
- Estimated total closing costs, excluding down payment: about $21,000 to $46,000
- Estimated cash to close: about $71,000 to $96,000
Why the range? Some fees scale with price or loan size, while others are fixed. On lower-price homes, fixed items like appraisals and title searches can create a higher percentage-of-price closing cost.
Wake County specifics to know
- Recording fees: the Wake County Register of Deeds charges predictable fees to record your deed and deed of trust. Confirm the current schedule with your closing attorney.
- Owner’s title policy custom: in many North Carolina markets, sellers sometimes pay for the owner’s policy. This can vary by county and contract, so confirm in negotiations.
- Property tax proration: your closing statement will prorate Wake County taxes based on the closing date and the county’s billing cycle. Combined tax rates can vary by municipality inside Wake County.
- Utilities and city fees: Raleigh Water and other municipal systems may charge setup or meter fees. These are often due at or soon after move-in.
- HOA fees: ask early for the association’s transfer, certification, and capital contribution policies. Do not assume the seller will pay them.
Get an accurate cash-to-close number
Follow these steps to dial in your numbers and avoid last-minute surprises.
Request a Loan Estimate as soon as you apply. Review every line with your lender. This is your first itemized snapshot.
Ask your closing attorney or title company for a settlement estimate. They can quote Wake County recording fees and title insurance premiums based on your contract.
Confirm required escrow reserves. Ask how many months of taxes and insurance your lender will collect at closing.
Verify seller credits and program limits. If you negotiated concessions, make sure your loan program allows them and that they appear on your Loan Estimate and Closing Disclosure.
Clarify who pays the owner’s title policy. Customs vary, so get this in writing in the contract.
Budget for inspections and repairs. Set aside funds for inspections and any negotiated repairs or holdbacks.
For relocators, include move-in extras. Plan for movers, utility deposits, HOA setup, and any immediate home needs alongside your closing funds.
Ways to lower your cash to close
- Ask about seller concessions. Within program limits, a seller credit can offset eligible closing costs.
- Compare rates and points. Paying points raises upfront costs but can lower your payment. Zero-point options reduce cash needed.
- Time your closing date. Closing late in the month often reduces prepaid interest.
- Shop homeowners insurance. Reasonable coverage at a competitive rate can reduce the first-year premium and escrow.
- Finance approved upfront fees when allowed. FHA upfront MIP, VA funding fees, and USDA guarantee fees can often be rolled into the loan, subject to program rules.
Final thoughts
Closing costs in Raleigh are knowable and manageable when you see them line by line. Start early with a Loan Estimate, add a settlement estimate from your closing attorney, confirm Wake County recording and HOA fees, and you will have a clear, reliable cash-to-close number.
If you want a local, no-drama path to the finish line, I am here to help you compare programs, review estimates, and connect you with trusted lenders and closing attorneys. For steady guidance from offer through closing, reach out to John Merriman.
FAQs
How much should a Raleigh buyer budget beyond the down payment?
- Plan for an additional 2% to 5% of the purchase price for closing costs and prepaids, plus any lender-required escrow reserves.
Who pays for the owner’s title policy and recording fees in Wake County?
- Customs vary by county and contract. Recording fees are charged by the Wake County Register of Deeds. Sellers sometimes pay the owner’s title policy in some NC markets, but confirm in your contract.
Do buyers pay property taxes at closing in Raleigh?
- Property taxes are prorated at closing. You may bring cash for any prorations and to fund tax escrow reserves based on your lender’s requirements.
Will my closing costs change based on loan type?
- Yes. FHA adds an upfront mortgage insurance premium, VA uses a one-time funding fee, and USDA includes a guarantee fee. Conventional loans may include PMI if you put less than 20% down.
Can the seller help pay my closing costs?
- Yes, through seller concessions within program limits. Confirm allowable amounts with your lender and ensure concessions are written into your contract.
When will I see my official closing numbers?
- Your lender must provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing, both with detailed line items.
