You found the house, the offer got accepted, and then the lender sends a number that isn’t the price of the house. That’s closing costs. For most North Carolina buyers they run somewhere around 2% to 5% of the purchase price, and they’re easier to handle when you know what’s in them before closing week. Here’s what you’ll pay, what’s specific to North Carolina, and how to bring the total down.
What closing costs are
Closing costs are the fees and prepaid expenses that come due when your purchase closes, on top of your down payment. On a $300,000 home, 2% to 5% works out to about $6,000 to $15,000. Where you land in that range depends on your loan type, your lender, your interest rate choices, and how much you have to prepay for taxes and insurance.
What buyers typically pay
Lender and loan costs
- Origination or underwriting fees: what the lender charges to process and fund your loan.
- Discount points: optional. You pay up front to lower your interest rate.
- Appraisal and credit report: required by most lenders to confirm the home’s value and your credit.
Attorney and title costs
- Closing attorney fee: North Carolina is an attorney-closing state. A licensed attorney handles the title search, prepares closing documents and runs the closing. The buyer usually hires and pays the closing attorney.
- Title insurance: the lender’s policy is required if you have a mortgage. An owner’s policy is optional, but it protects you if a title problem turns up later, and it’s worth asking about.
- Recording fees: the county charges to record your deed and deed of trust.
Prepaids and escrow
- Homeowners insurance: usually the first year is paid at or before closing.
- Escrow deposits: a few months of property taxes and insurance to start your escrow account.
- Prepaid interest: interest from your closing date to the end of that month.
- HOA fees: if the home is in an HOA, expect dues and sometimes a transfer or working-capital fee.
Money you pay before closing (and how it’s credited)
North Carolina contracts also involve money that changes hands long before closing day:
- Due diligence fee: paid directly to the seller for the right to inspect and back out during the due diligence period. It’s generally non-refundable if you walk away, and it’s credited toward your purchase price at closing.
- Earnest money deposit: held in escrow and credited toward your purchase at closing.
- Home inspection: usually paid to the inspector when the inspection happens, not at closing. See our home inspection tips for buyers.
What sellers pay in North Carolina
Sellers have their own closing costs, which is one reason sellers can sometimes help buyers with theirs. In North Carolina the seller typically pays the excise tax on the deed (revenue stamps, $1 per $500 of the price), the cost of preparing the deed, any loan payoff, and the brokerage compensation agreed in their listing agreement. Sellers can estimate their side with our seller net proceeds calculator.
When you’ll see the real numbers
- Loan Estimate: your lender must send it within 3 business days of your loan application. Use it to compare lenders line by line.
- Closing Disclosure: you must receive it at least 3 business days before closing. Compare it to your Loan Estimate and ask about anything that changed.
The CFPB’s Owning a Home guide walks through both forms line by line.
How to lower your closing costs
- Compare Loan Estimates from at least two or three lenders. Lender fees vary more than most buyers expect.
- Ask for seller concessions. A seller can agree to pay part of your closing costs, within limits set by your loan type. Read how seller concessions work.
- Check down payment and closing cost assistance. North Carolina has programs for eligible buyers. Start with NC down payment assistance.
- Weigh points against lender credits. Some lenders will cover part of your costs in exchange for a slightly higher rate. That can make sense if you won’t keep the loan long.
- Time your closing. Closing near the end of the month means less prepaid interest is due at closing. It lowers the cash you need that day, not the cost of the loan.
Frequently asked questions
How much are closing costs in North Carolina?
For buyers, commonly about 2% to 5% of the purchase price, depending on the loan, lender and prepaids. Your Loan Estimate gives your actual number.
Can closing costs be rolled into the loan?
Sometimes, depending on the loan program, or indirectly through lender credits in exchange for a higher rate. Either way you pay for it over time, so compare the long-term cost.
Is the due diligence fee a closing cost?
No. It’s paid to the seller up front and credited toward your purchase price at closing if the sale goes through. If you terminate during due diligence, the seller generally keeps it.
Are closing costs tax deductible?
Some items, such as property taxes and mortgage interest paid at closing, may be deductible. Ask a tax professional about your situation.
This article is general information, not legal, tax or financial advice. Your lender and closing attorney will give you your exact figures.
Ready to start your search? Our guide to buying your home walks through every step, and the Mantle Realty team is here when you want a local expert in your corner.
