You hear about closing costs all the time, but when you try to pin down what you will actually pay in Franklin, the answers can feel fuzzy. You are not alone. Buyers and sellers often focus on price and forget the one-time fees, prepaids, and prorations that land on the settlement statement. This guide breaks down typical closing costs in Tennessee, how they show up in Williamson County, and smart ways to plan ahead. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepaids due at or before closing to transfer a property and, if applicable, originate a mortgage. They include lender charges, title services, government recording fees, insurance, and prorated taxes or dues. The exact split between buyer and seller depends on your contract, loan program, and local practice.
You will receive official numbers from your lender and settlement agent. Buyers get a Loan Estimate within three business days of applying and a Closing Disclosure at least three business days before closing under federal TRID rules. If you have not seen these yet, review the CFPB’s Loan Estimate overview and the CFPB’s Closing Disclosure explainer.
How much are closing costs in Franklin
Buyer ranges
Most buyers should budget roughly 2% to 5% of the purchase price for closing costs, separate from the down payment. This covers lender fees, third-party services like appraisal and title, and prepaids for taxes and insurance. The range depends on loan type, interest-rate choices, and the timing of your closing within the month.
For a deeper primer on what makes up these figures, the CFPB explains common closing costs.
Seller ranges
For sellers, the largest line item is the real estate commission, which is negotiated and varies by market and property. Many sellers also budget an additional 1% to 3% or more to cover owner’s title insurance if customary, recording and payoff fees, and prorations. For national context on seller expenses and settlement items, see NAR’s field guide to closing and settlement costs.
Franklin buyer closing costs: what to expect
Loan-related fees
- Origination, underwriting, and processing charges from your lender. These vary by lender and loan product.
- Discount points if you choose to buy down your rate.
- Credit report and potential rate lock fees.
Required third-party services
- Appraisal, commonly several hundred dollars depending on property type.
- Title search and the lender’s title insurance policy.
- Settlement or escrow fee charged by the title company or closing attorney.
- Recording fees for the deed of trust with the county.
Prepaids and escrow deposits
- First year of homeowners insurance or proof of a paid policy.
- Initial escrow deposits for property taxes and insurance, often 2 to 3 months of each.
- Prepaid interest from funding date to month-end.
Optional or situational items
- General home inspection and any specialty inspections you choose.
- Survey if required by your lender or desired for boundary clarity.
- HOA transfer or estoppel fees if the property is in an association.
Who pays what
In many Tennessee transactions, sellers often pay for the owner’s title insurance policy, while buyers pay for the lender’s policy and loan-related items. This is a local custom, not a rule, and can be negotiated in your contract. Always verify the current custom for Franklin with your title company or agent.
Franklin seller closing costs: what to expect
Typical seller expenses
- Real estate commission, negotiated in your listing agreement.
- Owner’s title insurance policy if customary in your contract and market.
- Settlement/closing fee if a portion is assigned to the seller.
- Government recording, lien release, and payoff fees.
Payoffs, prorations, and credits
- Mortgage payoff, daily interest to the payoff date, and any lender release charges.
- Prorated property taxes, HOA dues, and utilities according to the contract and local practice.
- Repairs you agree to after inspections or any buyer credits negotiated in lieu of repairs.
County specifics to confirm
Recording fees and property tax schedules are set by Williamson County officials. Because fee schedules can change, confirm amounts with the Register of Deeds and the Trustee’s office on the Williamson County government site. Your title company will also include the latest figures on your settlement statement.
Programs that can lower buyer costs
If you are a first-time or income-eligible buyer, explore down payment and closing cost assistance through the Tennessee Housing Development Agency. THDA offers programs that may reduce your upfront cash to close. Start with the THDA homebuyer programs page and ask your lender which options you might qualify for.
For buyers using FHA or similar products, HUD also provides helpful consumer guidance on the closing process. See HUD’s overview of the home closing process for what to expect.
Two quick Franklin examples
These examples are hypothetical and for budgeting only. Your Loan Estimate, Closing Disclosure, and settlement statement will show the actual numbers for your transaction.
Example A: First-time buyer, Franklin condo at $450,000
- Buyer closing cost range at 2% to 5%: about $9,000 to $22,500
- Lender fees and any points: roughly $1,500 to $4,000
- Appraisal: about $450 to $700
- Credit, flood, underwriting: about $100 to $500
- Title search, lender’s title policy, and settlement: about $800 to $2,500 depending on title company
- Prepaids and escrow deposits for taxes and insurance: about $2,000 to $6,000
- Inspections and optional tests: about $300 to $1,200
Remember, your down payment and earnest money are separate from closing costs unless you negotiate seller credits.
Example B: Move-up seller, Franklin single-family at $850,000
- Commission: negotiated and typically the largest expense
- Owner’s title policy if customary in your contract
- Prorated taxes, HOA dues, and utilities per the closing date
- Repairs, concessions, or closing credits if negotiated
- Mortgage payoff plus any recording and lien release fees
Your net proceeds equal the sale price minus your loan payoff, commission, seller costs, and any prorations or credits. Ask your listing agent for a detailed seller net sheet early in the process.
Ways to reduce closing costs
- Shop multiple lenders and compare fully itemized Loan Estimates.
- Ask about lender credits versus discount points and how each affects your rate and payment.
- Negotiate seller credits toward your closing costs within loan program limits.
- Confirm which third-party fees you can shop, like title services and homeowners insurance.
- Time your closing date to manage prepaid interest and escrow deposits when possible.
- Avoid optional services you do not need after consulting your agent and lender.
What to do next
For buyers
- Request a clear Loan Estimate and ask which fees you can shop.
- Get quotes for mortgage rates, title services, and insurance.
- Budget 2% to 5% of the purchase price for closing costs and set aside funds for inspections.
- Review your Closing Disclosure at least three business days before closing and verify cash to close.
For sellers
- Ask for a seller net sheet that outlines commission, payoff, prorations, and expected net.
- Confirm local custom on owner’s title insurance and any county transfer or recording fees.
- Decide early whether you will offer concessions and how they impact your bottom line.
- Gather HOA contacts, utility info, and any warranties to streamline the settlement.
When you understand closing costs upfront, you control your timeline, reduce surprises, and improve your negotiating power. If you want a personalized estimate for your Franklin purchase or sale, connect with The Scott Zeller Team for local guidance and a clear plan.
FAQs
What are typical buyer closing costs in Franklin, TN?
- Most buyers budget about 2% to 5% of the purchase price for lender fees, title, appraisal, and prepaids.
Who pays the owner’s title policy in Franklin, Tennessee?
- In many Tennessee transactions the seller pays, but it is a local custom and negotiable, so verify with your title company or agent.
Can a seller pay my closing costs in Tennessee?
- Yes, seller-paid credits are common but subject to loan program limits and contract negotiation.
When will I see final closing numbers before settlement?
- Your lender must provide a Closing Disclosure at least three business days before closing under federal rules.
How much cash do I need at closing as a buyer?
- Add your down payment to your closing costs, then subtract any credits; your Closing Disclosure shows the exact cash to close.
Are property taxes prorated at closing in Williamson County?
- Yes, taxes are typically prorated based on the closing date, with final figures confirmed by the title company and county schedule.
