Surprised by how many fees show up between contract and closing? You are not alone. Whether you are buying your first home or selling to move up, closing costs can feel confusing. This guide keeps it simple and local so you know what to expect in Lebanon and greater Wilson County. You will see typical buyer and seller costs, what is negotiable, and how to read your estimates with confidence. Let’s dive in.
What closing costs cover
Closing costs are the non‑price expenses paid at closing. These include lender fees, title services, recording charges, tax and HOA prorations, and more. They do not include your down payment or your loan payoff.
As a planning rule, buyers in Tennessee often budget about 2% to 5% of the purchase price for closing costs and prepaids. Sellers often plan for 6% to 10% of the sale price, which includes commission and typical seller fees. Your actual numbers depend on price, loan type, negotiated credits, and Wilson County recording fees.
Buyer costs in Lebanon: what you pay
Below are common buyer‑paid items in Tennessee. Local customs vary, and some items can be shifted by negotiation.
- Loan application, origination, and points charged by your lender
- Appraisal and credit report
- Underwriting and processing fees
- Title search and the lender’s title insurance policy
- Recording fees for the mortgage and related documents, based on Wilson County’s schedule
- Prepaid interest, plus escrow deposits for property taxes and homeowners insurance
- Survey if required by the lender
- Home, pest, and specialty inspections (often paid before closing)
- Possible HOA move‑in or transfer fees, depending on the HOA
Tip: You can sometimes use a seller credit to reduce your upfront costs, subject to loan program limits.
Seller costs in Lebanon: what you pay
Sellers usually cover the largest single cost at closing, which is the commission. Other line items depend on the property and contract.
- Real estate commission, commonly a significant portion of seller costs; rates are negotiable
- Owner’s title insurance policy is often seller‑paid in many Tennessee deals, but this can vary by local custom
- Payoff of any mortgage, HELOC, or liens
- Recording or deed fees as required by county procedures
- Prorated county property taxes through the closing date
- Closing or settlement fee, sometimes split or assigned by local practice
- HOA transfer or assumption fees, if applicable
- Any seller credits toward buyer costs or repairs that were negotiated
Note: Many fees are customary rather than required. Confirm who pays which items with your title company and agent.
What is negotiable in Wilson County
You have options to shape your final numbers. Here are common levers and limits.
- Seller credits toward buyer costs. Buyers can ask for a closing cost credit instead of a price reduction. Program caps apply:
- FHA typically allows up to 6% of the price for certain costs and prepaids.
- VA allows concessions, with rules on which fees can be paid by the seller.
- Conventional loans set caps that vary with down payment, often in the 3% to 9% range. Always confirm your exact limit with your lender.
- Rate buydown versus lender credit. You can pay discount points to lower your rate or accept a lender credit for a slightly higher rate. Review the long‑term tradeoff with your lender.
- Title and settlement fees. Some title and closing fees can vary by provider. You can ask for estimates and compare.
- Commission. Commission is negotiable and set by agreement between you and your listing broker.
- Who pays the owner’s title policy, survey, termite letter, and certain recording fees. These can be negotiated and may follow local custom.
How estimates and final numbers work
Understanding the timeline helps you avoid last‑minute surprises.
- Loan Estimate. Within 3 business days after you apply for a mortgage, your lender issues a Loan Estimate. This shows your expected loan costs and a first look at buyer closing costs.
- Title company estimate. Your title or closing company can provide an itemized estimate that includes title fees, owner’s policy if applicable, county recording fees, and prorations.
- Prorations. Wilson County property taxes, HOA dues, and sometimes utilities are prorated to the closing date. The seller pays for their period of ownership, and you pay after closing.
- Closing Disclosure. At least 3 business days before closing, your lender provides a Closing Disclosure that itemizes your final costs. Sellers receive a settlement statement showing payoffs and net proceeds.
- Final reconciliation. The title company coordinates payoffs and pulls county fee schedules. Any negotiated credits and adjustments appear on the Closing Disclosure or settlement statement.
Smart planning checklist for Wilson County
Use this quick list to stay organized and confident.
- Compare Loan Estimates from at least two lenders to review origination fees, points, and total cash to close.
- Ask the title company for a preliminary title commitment and sample buyer and seller statements.
- Confirm the latest Wilson County recording and deed fees with your title company or the county offices.
- Verify the current property tax amounts with the Wilson County Trustee or Assessor so prorations are accurate.
- Check HOA transfer or move‑in fees with the HOA manager for your specific property.
- If you are financing, confirm your loan program’s seller concession limits with your lender.
- Expect your Closing Disclosure 3 business days before closing, then compare it to your Loan Estimate line by line.
Two quick estimates
The following are simplified estimates to illustrate how totals can stack up. Your numbers will vary based on price, program, and negotiated terms.
- Buyer estimate: On a $350,000 purchase, a buyer paying about 2.5% in closing costs would bring roughly $8,750 for lender fees, appraisal, title items, and initial escrow deposits. This is in addition to any down payment.
- Seller estimate: On a $350,000 sale, a seller paying about 8% could see roughly $28,000 in total costs. This example assumes a 6% commission of $21,000, about $2,500 for an owner’s title policy, and around $4,500 for prorations and county or recording items.
The bottom line
If you are buying in Lebanon, plan for about 2% to 5% of the price for closing costs, plus your down payment. If you are selling, plan for about 6% to 10%, with commission as your largest expense. Many items are negotiable, and loan program rules can shape what is possible. Confirm Wilson County recording and tax details early, and use your Loan Estimate and Closing Disclosure to keep surprises off the table.
If you want a clear, custom breakdown for your property and loan type, our team is ready to help you plan and negotiate with confidence. Connect with The Luxe Collective TN to get a tailored estimate and next steps.
FAQs
What are typical buyer closing costs in Lebanon, TN?
- Buyers often budget about 2% to 5% of the purchase price for closing costs and prepaids, with the exact amount shaped by loan type, price, and negotiated credits.
Who pays owner’s and lender’s title insurance in Tennessee?
- Buyers commonly pay for the lender’s policy, while the seller often pays for the owner’s policy in many Tennessee deals, but this can vary by local custom and negotiation.
How are property taxes prorated at a Wilson County closing?
- Property taxes are prorated to the closing date, so the seller pays for their portion of the year through closing and the buyer pays from closing forward.
Can a seller cover my closing costs with FHA or VA financing?
- Yes, seller credits are allowed within program limits; FHA commonly allows up to 6%, and VA permits concessions with specific rules on which fees the seller can pay.
When will I see my final closing numbers?
- Buyers receive a Closing Disclosure at least 3 business days before closing, and sellers receive a settlement statement before or at closing showing payoffs and net proceeds.
Do I need a cashier’s check or a wire for closing funds?
- Many title companies accept wires, while some require a certified or cashier’s check; confirm your preferred method and instructions with your title company early.
