Trying to figure out how much cash you will need at closing in Cary? You are not alone. Closing costs can feel vague until you see the numbers on paper, and that can make planning tough. In this guide, you will see what typical North Carolina buyer closing costs include, how Cary customs work, and realistic examples at common Triangle price points. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaid items you pay at or before closing in addition to your down payment. They cover lender charges, title and recording fees, inspections and surveys, prepaid property taxes and homeowners insurance, escrow deposits, and attorney or settlement fees. In North Carolina and nationally, buyers typically pay about 2% to 5% of the purchase price in closing costs, not including the down payment. Lower down payments, buying discount points, higher prepaid taxes or insurance, and private mortgage insurance can push you toward the higher end of the range.
In Cary and Wake County, buyer closing costs generally track national norms with a few local customs you should know. The sections below break down each line item so you can plan with confidence.
What Cary buyers typically pay
Below are common categories you will see if you are financing your purchase. If you pay cash, many lender-driven costs go away and your total will be lower.
Lender-related costs
- Application and credit report: typically $25 to $75.
- Origination fee or lender fee: often 0.5% to 1.5% of the loan amount. A 1% origination on a $480,000 loan equals $4,800.
- Discount points: optional, each point is 1% of the loan amount and lowers your rate.
- Appraisal: usually $450 to $900, higher for complex properties.
- Underwriting and processing: about $400 to $1,200 total.
Title, attorney, and recording
- Lender’s title insurance policy and title search: typically several hundred to a few thousand dollars, based on loan size and rate schedules.
- Settlement or closing attorney fee: about $300 to $1,000 depending on complexity.
- Recording fees at the register of deeds: often $50 to $200 depending on documents.
Inspections and survey
- Home inspection: about $350 to $700.
- Termite or wood-destroying insect (WDI): about $50 to $150.
- Radon testing: about $100 to $200.
- Survey or plat (if needed by lender or for your peace of mind): about $300 to $1,000.
Prepaids and escrows
- Homeowners insurance: first year premium due before closing in many cases, plus an initial escrow deposit of 2 to 3 months.
- Property taxes: prorated at closing based on the date you take ownership, plus an initial escrow deposit that often equals 2 to 3 months of taxes. On a $6,000 annual tax bill, two months equals about $1,000.
- Prepaid interest: interest from your closing date to month-end. On a $480,000 loan at 4% interest, expect about $53 per day.
HOA and miscellaneous
- HOA transfer or estoppel fees: often $100 to $400 when applicable.
- Wire, courier, and other small fees: about $25 to $250.
North Carolina and Cary customs
- Title insurance custom: In many North Carolina transactions, sellers pay for the owner’s title insurance policy, while buyers pay for the lender’s policy when there is a mortgage. This is a custom, not a rule, so always confirm in your contract and with your closing attorney.
- Use of closing attorneys: Many North Carolina closings are conducted by an attorney or an attorney-supervised title company. Expect to see attorney fees on your Closing Disclosure.
- Property taxes and prorations: Wake County and the Town of Cary levy property taxes that vary by parcel and fiscal year. You will likely pay a prorated share from your closing date forward, and your escrow deposit will reflect the upcoming tax schedule.
- HOA communities: Cary has many covenant and HOA communities. Plan for HOA transfer or estoppel fees and possible prorated dues at closing.
- Local inspection norms: Buyers commonly order a full home inspection, plus WDI/termite, radon, HVAC checks, and other targeted inspections as needed.
- Assistance programs: The North Carolina Housing Finance Agency and some local programs may offer down payment or closing-cost help for eligible buyers. Check current guidelines and deadlines early.
How much to budget: Cary examples
The numbers below reflect typical lender, title, escrow, and inspection costs for upper–mid price points in Cary. Assumptions: 20% down payment and a conventional loan.
Example A: $600,000 purchase (loan $480,000)
- Lender fees: $3,500 to $6,500
- Title and recording: $800 to $2,200
- Inspections and survey: $400 to $1,200
- Prepaid taxes and insurance (escrows): $1,500 to $4,000
- Prepaid interest: $400 to $1,200
- Attorney and miscellaneous: $300 to $1,000
- Estimated total buyer closing costs: about $6,000 to $15,000, roughly 1% to 2.5% of price. Purchasing discount points or having higher lender fees can raise totals toward 3%.
Example B: $800,000 purchase (loan $640,000)
- Lender fees: $4,500 to $8,500
- Title and recording: $1,000 to $3,000
- Inspections and survey: $400 to $1,500
- Prepaid taxes and insurance (escrows): $2,000 to $5,500
- Prepaid interest: $600 to $1,600
- Attorney and miscellaneous: $300 to $1,200
- Estimated total buyer closing costs: about $8,800 to $21,300, or 1.1% to 2.7% of price. Points, PMI, or larger escrow deposits can push higher.
For planning purposes in Cary, a conservative target is to set aside 2% to 3% of the purchase price for closing costs if you are financing, in addition to your down payment.
How to estimate your numbers
Use this simple step-by-step plan early in your home search.
Contact a lender and request a Loan Estimate within three business days of applying. The LE itemizes loan costs, prepaids, and your estimated cash to close.
Request a title quote from a local closing attorney or title company. Ask for itemized title premiums, settlement fees, and recording charges.
Pull the current tax bill for your target property type using the Wake County tax portal and Town of Cary resources. Estimate prorations based on an expected closing date.
Get homeowners insurance quotes from at least two local providers. Note the annual premium and how many months will be collected for the escrow deposit.
Add inspection and HOA fees. Get a written quote from a licensed home inspector and ask the HOA about transfer or estoppel fees.
Build a cushion. Add 5% to 10% on top of your estimates in case of adjustments or timing changes.
Ways to reduce or cover costs
- Ask about seller concessions. Your agent can negotiate for the seller to credit part of your closing costs, subject to loan program limits.
- Shop for lenders and providers. Origination, appraisal, title, and inspection fees can vary.
- Consider rate strategy. Buying discount points raises upfront costs but can lower your monthly payment. Decide based on how long you expect to keep the loan.
- Time your closing. Closing late in the month can reduce prepaid interest.
- Explore assistance programs. If you qualify, down payment or closing-cost help can offset cash to close.
Timeline and disclosures to expect
You receive a Loan Estimate soon after you apply. At least three business days before closing, you receive a Closing Disclosure that shows your final cash to close. Compare your LE and CD line by line and ask about any changes. If key terms change, the three-day period restarts, which can shift your closing date.
Quick checklist: what to collect early
- Loan Estimate from your lender
- Title quote or attorney fee sheet
- Wake County property tax bill and expected proration
- Homeowners insurance quotes
- HOA estoppel or transfer fee details
If you want a second set of eyes on your numbers or need local referrals, our team can help you map the exact cash-to-close for your plan and timeline. Ready to take the next step? Connect with SB Real Estate to talk through your goals and next steps.
FAQs
What are typical buyer closing costs in Cary, NC?
- Most financed purchases land around 2% to 3% of the price, with totals affected by lender fees, discount points, prepaid taxes and insurance, and mortgage insurance.
Are closing costs negotiable for North Carolina buyers?
- Yes. You can negotiate seller concessions, shop lenders and title providers, and adjust your rate and points strategy. Lenders limit how much a seller can contribute.
Who pays for title insurance in North Carolina?
- It is common for the seller to pay the owner’s title policy, while the buyer pays the lender’s title policy when there is a mortgage. Confirm in your contract and with your attorney.
Do Cary buyers pay property taxes at closing?
- Taxes are prorated based on the closing date. You also fund an initial escrow deposit so the lender can pay upcoming tax and insurance bills on schedule.
If I pay cash, which closing costs still apply?
- You avoid lender fees, lender’s title insurance, prepaid interest, and mortgage escrows. You still may pay inspections, owner’s title insurance if negotiated, recording fees, prorated taxes, and any HOA fees.
When will I know my final cash to close?
- Your Closing Disclosure arrives at least three business days before closing. Review it against your Loan Estimate and ask your lender or attorney to explain any differences.
