Buying in McDonough and wondering what the check at the closing table actually covers? You are not alone. Between lender fees, title charges, and prepaids, it can feel confusing fast. This guide explains typical buyer closing costs in Henry County, how much to budget, and the local details that can affect your final number. Let’s dive in.
What closing costs are
Closing costs are the one-time fees and prepaids you pay when your home purchase is finalized. They cover lender charges, title and settlement services, government recording fees, prepaids like property taxes and insurance, and third-party items such as the appraisal and inspections. These costs are separate from your down payment. You will see all final numbers on your lender’s Closing Disclosure, which must be delivered at least three business days before closing.
How much you will pay
Most buyers in Georgia pay roughly 2% to 5% of the purchase price in closing costs, not including the down payment. Your total depends on your loan type, lender pricing, title insurance choices, and any seller credits you negotiate. Use the 2% to 5% rule as a budget cushion, then refine it with estimates from your lender and the closing attorney or title company.
Typical buyer fees in McDonough
Below are common items you may see on your Closing Disclosure. Actual amounts vary by lender, property, and contract terms.
Lender fees and points
- Origination, processing, and underwriting: often a percentage of the loan or flat fees.
- Credit report: usually a small fixed cost, often $25 to $75.
- Appraisal: commonly about $400 to $800 for a typical single-family home in the Atlanta metro area.
- Rate lock or discount points: optional cost to reduce your interest rate. One point equals 1% of the loan amount.
- Mortgage insurance premiums: if your loan requires it, some premiums may be paid at closing or added to monthly payments.
Title, settlement, and attorney
- Title search and examination: verifies ownership and checks for liens.
- Title insurance:
- Lender’s policy: typically required by your lender and usually paid by the buyer.
- Owner’s policy: protects your ownership; who pays is negotiable. In many Georgia transactions, sellers often pay for the owner’s policy, but practices vary by deal and neighborhood.
- Settlement/closing fee: paid to the title company or closing attorney. This may be split by buyer and seller depending on custom.
- Attorney fees: Georgia closings are commonly conducted by title companies or closing attorneys; any attorney fee will be listed.
Government and recording
- Recording fees: county charges for recording the deed and mortgage with the Henry County Clerk of Superior Court. These are typically modest and depend on the number of documents.
- Transfer and documentary charges: Georgia’s charges vary by jurisdiction and transaction details. Confirm current fees with your title company or the county clerk.
Prepaids and escrow reserves
- Prepaid property taxes: prorated based on the closing date and Henry County’s tax calendar. You may reimburse the seller for taxes already paid or prepay a portion.
- Homeowner’s insurance: most lenders require the first-year premium to be paid at or before closing.
- Prepaid interest: covers interest from the day your loan funds to your first payment date.
- Escrow reserves: most lenders collect 1 to 2 months of taxes and insurance to start your escrow account.
Inspections and third-party
- Home inspection: often $300 to $600 depending on the home and scope.
- Pest, septic, well, or specialty inspections: costs vary by provider.
- Survey: if required, often about $300 to $700.
- HOA estoppel or transfer letters: amounts vary by community.
Credits, earnest money, and adjustments
- Earnest money: applied to your closing costs or down payment at closing.
- Seller credits: you can negotiate for the seller to contribute toward your closing costs or pay for specific items.
- Prorations: items like property taxes and HOA dues are split between buyer and seller based on the closing date.
Local McDonough factors to know
Who handles closing
In Georgia, a title company and/or a closing attorney typically handles the settlement. In McDonough, you will usually work with a locally licensed title or settlement company that serves Henry County.
Title insurance customs
It is common in many metro Atlanta deals for the seller to pay for the owner’s title policy. This is not universal. Confirm who pays in your purchase contract and with your title company.
County fees and tax timing
Recording fees are set by Henry County and can vary based on how many documents must be recorded. Property taxes are prorated at closing according to the county’s billing cycle. Ask your title company to confirm the current recording charges and how your tax proration will be handled.
HOA and new communities
Many McDonough neighborhoods have HOAs. Expect an HOA estoppel or transfer letter and check if the community requires any prepaid dues or transfer fees at closing. Your title company will order the letter and verify amounts.
Assistance programs
If you are a first-time buyer or meet certain criteria, ask your lender about Georgia state or local programs that can help with down payment or closing costs. These may be grants or low-interest second mortgages and depend on income limits, purchase price caps, and other rules.
Estimate your closing costs
Use this simple method to build a reliable estimate.
Step-by-step plan
- Request a Loan Estimate from your lender. This will outline lender fees and third-party costs tied to your loan.
- Ask your title or settlement company for an itemized closing estimate that includes title insurance options and recording fees.
- Add prepaids: first-year homeowner’s insurance, prepaid interest, escrow reserves, and any property tax proration.
- Subtract credits: earnest money already paid and any seller credits.
- Check the rule of thumb: budget 2% to 5% of the purchase price to avoid surprises, then refine with the estimates above.
Example for a $300,000 home
- Rule-of-thumb range at 2% to 5%: $6,000 to $15,000
- Possible line items (illustrative only):
- Lender fees and appraisal: $1,500 to $3,500
- Title, recording, and settlement: $800 to $2,000
- Owner’s title policy if buyer pays: $1,000 to $2,000
- Prepaids and escrows: $2,000 to $5,000
- Inspections, survey, HOA letters: $400 to $1,200
- If you already paid $3,000 in earnest money, subtract it from the total to get your estimated cash to close.
Use your lender’s Loan Estimate and the title company’s itemized estimate for exact numbers. Your lender will also issue a Closing Disclosure at least three business days before closing so you can verify every line.
Smart tips before you close
- Get pre-approved early for a clearer Loan Estimate and stronger offer.
- Ask for itemized estimates from your lender and title company as soon as you go under contract.
- Confirm how to deliver funds. Some closings require a wire while others accept a cashier’s check.
- Protect yourself from wire fraud. Verify wiring instructions by calling a known phone number for the title company on the day you send funds.
- Keep records of earnest money, inspection receipts, and any credits you negotiated in the contract.
- If you are a first-time buyer, ask about assistance programs that can help cover part of your closing costs.
How The Legacy Real Estate Group helps
You deserve clear numbers and zero surprises. Our local team guides you through lender quotes, title estimates, and contract credits so you know your cash to close well before signing. We coordinate with trusted local closing attorneys and title companies across Henry County and help you time inspections, HOA letters, and insurance so your Closing Disclosure matches your expectations.
Ready to buy in McDonough or need to sell first to unlock equity? Talk with the local team that combines modern systems with neighborhood expertise. Connect with The Legacy Real Estate Group to plan your move and your budget with confidence.
FAQs
How much are buyer closing costs in McDonough?
- Most buyers should budget about 2% to 5% of the purchase price for closing costs, not including the down payment.
Who pays for the owner’s title policy in Henry County?
- It is commonly paid by the seller in many Georgia transactions, but it is negotiable and should be confirmed in your contract.
When do I get my final closing numbers?
- Your lender must provide a Closing Disclosure at least three business days before closing that lists final loan-related charges.
Are property taxes collected at closing in McDonough?
- Taxes are prorated based on the closing date and the county’s billing cycle, so you may reimburse the seller or prepay a portion at closing.
Can the seller cover some of my closing costs?
- Yes. You can negotiate seller credits or ask the seller to cover certain items, subject to loan program limits and contract terms.
What inspections should I budget for as a buyer?
- Plan for a general home inspection, plus pest, septic, well, or other specialty inspections if applicable; costs vary by provider.
Do I need an escrow account for taxes and insurance?
- Most lenders require an escrow account and will collect 1 to 2 months of reserves at closing to seed it.
