Closing day should feel exciting, not confusing. If you are buying in Franklin, you may be wondering how much cash you will need besides your down payment. The short answer is that most buyers pay closing costs equal to about 2% to 5% of the purchase price. In this guide, you will see what those costs cover, how your loan and price point change the total, and how to plan your cash to close with confidence. Let’s dive in.

Franklin buyer closing cost basics

Most Franklin buyers pay about 2% to 5% of the purchase price in closing costs, not including the down payment. Your total depends on your loan type, the property, and any seller or lender credits you negotiate. Because Williamson County home prices run higher than many parts of the region, the percentage range is similar, but the dollar amount can be larger.

What you will pay, line by line

Lender and loan fees

These are charged by your lender to approve and fund your mortgage.

• Origination or processing fee: often 0% to 1% of the loan amount. Some lenders use a flat fee.
• Underwriting and admin fees: often $300 to $1,200 total.
• Appraisal: typically $400 to $800 for a single family home, higher for complex properties.
• Credit report: usually $25 to $50.
• Rate lock or lock extension: only if you lock early or extend.
• Discount points: optional. Each point is about 1% of the loan amount to reduce your rate.
• Program specific fees: FHA upfront mortgage insurance premium, VA funding fee, or USDA guarantee fee. These can often be financed or paid at closing.

Title, settlement, and recording

A title or settlement company handles closing in Tennessee.

• Title search and title insurance: you typically pay the lender’s title policy if you have a mortgage. The optional owner’s policy is negotiable in the contract.
• Settlement fee: often several hundred dollars to over $1,000, varies by company.
• Recording fees: the county records the deed and mortgage. These fees are usually modest, often tens to a few hundred dollars. Confirm current amounts with the Williamson County Register of Deeds.
• State or county transfer taxes: treatment varies by jurisdiction. Your title company will confirm what applies to your purchase.

Prepaids and escrow reserves

These are not fees but upfront funding of items you will pay anyway.

• Property tax proration: you may reimburse the seller for taxes they prepaid, based on the closing date. Williamson County billing cycles and rates determine the amount.
• Homeowners insurance: many lenders require the first year’s premium at closing.
• Prepaid interest: interest from your funding date until the first payment.
• Escrow deposits: many lenders collect 1 to 3 months of property taxes and insurance to start your escrow account.

Inspections, surveys, and third parties

• Home inspection: $300 to $600 typical.
• Pest or termite inspection: $50 to $200.
• Survey: $300 to $900 if needed.
• HOA document or estoppel fees: if the home is in an association, expect a document fee that often starts around $100.

Other possible costs

• HOA transfer or move in fees, capital contributions, or reserves if required by the community.
• Notary and wire transfer fees.
• Attorney fee if you choose to hire one, not required in Tennessee.

How price and loan type change totals

Purchase price effect

Some costs scale with price, like title insurance and any points you choose to pay, so the dollar total tends to rise as price increases. Fixed items like an appraisal or inspection do not scale. On a lower priced home, fixed items can be a larger percentage of the price. On a higher priced home, many buyers still land in the 2% to 5% range, but the dollars are higher.

Loan type snapshot

• Conventional: you may see private mortgage insurance if you put less than 20% down. PMI often affects your monthly payment more than your upfront costs unless you choose a single premium option.
• FHA: includes an upfront mortgage insurance premium that can often be financed. Seller concessions are commonly allowed up to 6% of the price toward your costs and prepaids.
• VA: includes a VA funding fee that can be financed or paid at closing. Seller concessions are typically allowed up to 4% of the price for permitted items.
• USDA: includes an upfront guarantee fee and an annual fee. Some seller concessions are allowed, subject to program rules.
• Jumbo: lender fees and appraisal costs can be higher due to more complex underwriting.

Credits and concessions

• Earnest money: your deposit is usually credited to your closing costs or down payment.
• Seller concessions: you can negotiate for the seller to cover some costs, within loan program limits.
• Lender credits: some lenders offer a credit in exchange for a slightly higher interest rate, which can reduce your cash to close.

Franklin and Williamson County specifics

• Recording and transfer items: confirm current recording fees and any applicable transfer taxes with your title company or the Williamson County Register of Deeds.
• Property taxes: your proration and escrow setup depend on the county’s rates and billing cycle. Check current details with the Williamson County Trustee and Assessor.
• HOAs are common: many Franklin neighborhoods and planned communities have associations. Budget for document fees, any transfer or move in fees, possible capital contributions, and dues proration at closing.
• Historic or luxury homes: specialty inspections or insurance can add cost for certain properties in Franklin.

Real world examples you can adapt

These are simple illustrations, not quotes. Your lender’s Loan Estimate and the title company’s estimate will provide your exact figures.

Scenario A: $500,000 purchase, 10% down

• Loan amount: $450,000
• Estimated buyer closing costs: 2% to 5% of price, about $10,000 to $25,000
• Sample split within that range:
  • Lender and loan fees, including a sample 0.5% origination: about $2,250
  • Appraisal and credit report: about $650
  • Title, settlement, and lender’s title policy: about $1,500 to $3,000
  • Prepaids and escrow deposits: about $3,000 to $7,000
  • Inspections, HOA docs, and recording: about $500 to $1,500

Scenario B: $900,000 purchase, 20% down

• Loan amount: $720,000
• Estimated buyer closing costs: 2% to 5% of price, about $18,000 to $45,000
• Note: title premiums and some lender charges scale with price, while many fixed items stay similar.

How we estimated this

• Percentage range: 2% to 5% of the purchase price.
• Sample fixed items: appraisal $600, inspection $450, credit report $35, recording and title search $300.
• Origination example: 0.5% of the loan amount. Your lender may be higher or lower.
• Escrow reserves: 2 months of taxes and insurance as a placeholder. Actual reserves vary by lender and timing.
• First year homeowners insurance: placeholder $1,200. Your premium depends on the home and coverage.

Step by step: estimate your costs

• Get a Loan Estimate from your lender within three business days of application. Use it to list your lender fees.
• Ask your title company for a fee quote. Include lender’s title policy, optional owner’s policy if you choose it, settlement fee, recording fees, and any wire fees.
• Estimate prepaids and escrows. Include tax proration based on the closing date, first year insurance, prepaid interest, and tax or insurance reserves.
• Add inspections and HOA items. Include a general home inspection, termite or pest report, any survey, and HOA document fees.
• Subtract credits. Deduct your earnest money and any negotiated seller or lender credits.
• Confirm cash to close. Down payment plus total closing costs, minus credits.
• Review your Closing Disclosure at least three business days before closing. This is the final, binding itemization.

Tips to reduce cash to close

• Compare lender fee structures and rate options. A small rate difference or lender credit can offset thousands at closing.
• Negotiate seller concessions within your loan program limits. Target prepaids and escrow deposits too.
• Time your closing date. Closing late in the month reduces prepaid interest.
• Select the right insurance deductible and shop carriers to balance upfront premium and coverage.

What to expect at the closing table

• Who attends: in Tennessee, a title or settlement company typically coordinates the signing. Attorneys are optional for buyers.
• What you sign: loan documents, the deed of trust, and your final Closing Disclosure.
• How you pay: most buyers wire funds for cash to close. Confirm wiring instructions directly with your title company to avoid fraud.

Ready to plan your numbers for a Franklin purchase and negotiate with confidence? Reach out to Traci Colon for a clear, local game plan and a calm, step by step path to closing.

FAQs

How much should a Franklin buyer budget for closing costs?

• Most buyers in Franklin budget 2% to 5% of the purchase price for closing costs, not including the down payment.

Who pays for owner’s title insurance in Franklin, TN?

• The owner’s title policy is optional and negotiable in Tennessee, so payment depends on your purchase contract and local practice.

Can a seller pay my closing costs in Williamson County?

• Often yes, within loan program limits, such as up to 6% for many FHA loans and up to 4% for many VA loans for permitted items.

What prepaid items should I expect at closing in Franklin?

• Expect first year homeowners insurance, prepaid interest from funding to your first payment, tax proration, and escrow reserves for taxes and insurance.

What must I receive before closing on a home in Franklin?

• You should receive your Closing Disclosure at least three business days before closing, along with your deed, loan documents, and any HOA documents for review.