Buying or selling a home in Franklin often comes with one big question: what will you actually pay at the closing table? You want a clear picture so you can budget, compare loan options, and negotiate with confidence. In this guide, you’ll learn what closing costs include, who typically pays what in Williamson County, how loan type and price point change the numbers, and the exact questions to ask your lender and title company. Let’s dive in.

What closing costs include

Closing costs are the fees, prorations, prepaids, and taxes due when the property transfers and the mortgage funds. They cover lender charges, third‑party services (like appraisal and title), county recording fees, escrow adjustments, and any agreed seller credits. Custom in Franklin generally mirrors national practice, but your purchase contract can shift items through concessions or credits.

By law, your lender must deliver a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing. These forms list expected fees and your cash to close. The settlement statement from the title company will show final prorations and any last adjustments.

As a planning range, buyers commonly pay about 2% to 5% of the purchase price in closing costs. For sellers, the largest expense is usually the real estate commission, and total seller costs (commission plus other fees and any credits) often land in the single‑digit to low‑double‑digit percentage range. Your actual numbers will depend on price, loan type, and negotiations.

Typical buyer costs in Franklin

Buyer costs fall into a few buckets. Some scale with price, and several vary by loan type.

Lender charges

• Origination, processing, and underwriting fees (sometimes expressed as points)
• Credit report and application fees
• Optional discount points if you buy down your rate

Third‑party services

• Appraisal (required for most loans): commonly several hundred dollars depending on complexity
• Inspections (general, termite, radon, septic or sewer scope if needed)
• Survey if required
• Title search, lender’s title insurance policy (required), and optional owner’s policy
• Escrow or settlement fee to the title company
• County recording fees for the deed and mortgage
• HOA transfer or estoppel fees when applicable

Prepaids and reserves

• Prepaid property taxes and homeowners insurance
• Prepaid interest for the partial month after closing
• Escrow account funding for future taxes and insurance if your lender requires it

Other small items

• Flood zone certification, credit reporting, courier and wire fees

Cash buyers vs. financed buyers

Cash buyers skip lender charges, lender-driven appraisals, and most loan prepaids. You still pay title and settlement fees, recording, and prorations.

Price and property effects

Title insurance premiums and some county fees scale with price, so higher‑priced Franklin homes carry higher absolute dollar costs. Unique or luxury properties may need specialized appraisals and inspections that can cost more.

Loan type and how it changes costs

Your loan choice can materially change both upfront costs and monthly payments.

Conventional loans

• Private mortgage insurance may apply with less than 20% down (often monthly, unless you choose to pay part upfront)
• Points are optional and can lower your rate for an upfront cost

FHA loans

• Upfront mortgage insurance premium (UFMIP) applies and can be financed or paid at closing
• Additional FHA appraisal and endorsement requirements may affect timing and cost

VA loans

• No PMI, but a VA funding fee applies unless exempt (can be financed or paid at closing)
• VA appraisal and compliance requirements are specific to the program

USDA loans

• A guarantee fee structure similar to a funding fee applies (often financed)

Jumbo and non‑conforming

• Often higher underwriting and appraisal complexity, which can mean higher lender or third‑party fees

Cash purchases

• Eliminate almost all lender fees; remaining costs focus on title, settlement, recording, and prorations

Seller closing costs in Franklin

Commission and core seller expenses

The real estate commission is typically the largest seller cost and is negotiated in the listing agreement. Beyond commission, sellers usually handle mortgage payoff, prorated property taxes and HOA dues, and recording of lien releases. In many markets, sellers pay for the owner’s title policy, but this is negotiable in Franklin and should be confirmed with your title company and contract terms.

Repairs, credits, and incentives

Inspection findings can lead to repairs or closing credits. Some sellers also offer a home warranty as a marketing incentive. When you add commission, seller‑side fees, expected repairs, and any credits, total seller costs commonly fall in the single‑digit to low‑double‑digit percentage range of the sale price. The exact figure depends on your home, market conditions, and negotiations.

How price and timing change your bottom line

Higher price points often mean higher title premiums and sometimes larger escrow reserves. Closing date also matters. If you close late in the month, prepaid interest is typically lower than if you close early in the month. Property taxes and HOA dues are prorated between buyer and seller according to the contract and local practice.

As a planning example, on a $500,000 financed purchase in Franklin, a 2% to 5% buyer cost range equals about $10,000 to $25,000 in closing costs. Treat this as a ballpark only. Always rely on your Loan Estimate and your title company’s fee quote for the most accurate numbers.

Franklin and Williamson County specifics to verify

• County recording fees: These are set by instrument type and can change. Ask your title company to provide the current Williamson County schedule.
• Property tax proration: Confirm how taxes are assessed and whether they are prorated on a calendar basis or per local billing cycle.
• HOA transfer or estoppel fees: Many Franklin communities have HOAs. Fees and timelines vary by association.
• Flood, septic, and well considerations: Some properties near creeks or in rural pockets may need flood determinations, septic inspections, or additional survey work.
• Title endorsements: Tennessee title practices may include common endorsements. Your lender and title officer can advise which are required and how they are priced.
• Special assessments or utility tap fees: Ensure anything outstanding is discovered and prorated.

How to estimate your cash to close

Start with official quotes, not guesswork. Your lender and title company will give you the most accurate figures for your situation.

Ask your lender

• Provide a Loan Estimate and walk me through every line item I might pay at closing
• Show lender fees, any points, and whether PMI, MIP, or funding fees are paid upfront or financed
• Detail appraisal, credit report, and underwriting fees (and whether any are refundable)
• Explain how prepaid interest, escrow reserves, and property tax proration will be calculated for my closing date
• If I put down X% or buy discount points, show a side‑by‑side of cash to close and monthly payment
• For VA, FHA, or USDA loans, identify required government fees and whether they can be financed
• Clarify what could change the Closing Disclosure timing or final cash to close

Ask your title or settlement company

• Provide an itemized estimate for title insurance (owner and lender), settlement fee, recording fees, and county charges for Williamson County
• Tell me whether sellers typically pay for the owner’s title policy here and whether that is negotiable
• Share the current county recording fee schedule for deeds, mortgages, and releases
• Confirm any HOA or municipal transfer fees and how long estoppel letters take
• Provide wire instructions and fraud‑prevention steps for safely transferring funds
• Identify any special title work or endorsements needed for this property

For sellers: plan your net

• Request a preliminary net sheet with likely commission, title charges, prorations, payoff, and estimated credits
• Ask your lender for a payoff demand that includes daily interest and any lender‑specific payoff fees
• Confirm how property taxes and HOA dues will be prorated on your timeline
• Discuss whether offering credits vs. repairs better supports your goals

Simple checklists

Buyer quick checklist

• Get a Loan Estimate from your lender
• Get an itemized title and recording fee quote
• Budget for inspections, appraisal, and HOA fees if applicable
• Decide whether to buy points and how that changes cash to close
• Confirm tax and insurance escrows and prepaid interest based on your target closing date

Seller quick checklist

• Review a net sheet that includes commission, title charges, prorations, and payoff
• Confirm who pays for owner’s title insurance in your contract
• Plan for possible repair requests or credits after inspections
• Verify HOA status letters, transfer fees, and any special assessments
• Coordinate payoff timing to avoid extra per‑diem interest

Example scenarios (for planning only)

• Financed buyer on a $500,000 home: A 2% to 5% range suggests roughly $10,000 to $25,000 in buyer closing costs before any seller credits. Actual numbers will depend on loan type, points, and timing.
• Cash buyer on the same home: No lender fees or lender appraisal. Expect title and settlement charges, recording, and prorations. Total costs are typically lower than a financed purchase.
• Premium seller: Commission remains the largest line item. Add title charges, prorations, payoff, and any credits. Your final net hinges on preparation, pricing, and negotiation.

Avoid last‑minute surprises

• Watch your Closing Disclosure timeline. Lenders must deliver it at least three business days before closing.
• Confirm HOA requirements early so transfer letters do not delay closing.
• Use verified wire instructions and call your title company to confirm before sending funds.

When you want a clear, no‑surprises path to the closing table, you deserve a local team that knows the numbers and the narratives behind them. If you are planning a move in Franklin or greater Williamson County, connect with Sarah Nicodemus for a thoughtful plan, precise estimates, and a smooth closing.

FAQs

What are typical buyer closing costs in Franklin?

• Buyers often budget 2% to 5% of the purchase price for lender charges, third‑party fees, and prepaids, with exact figures set by loan type, price, and timing.

Who usually pays for owner’s title insurance in Williamson County?

• In many markets sellers pay for the owner’s policy, but it is negotiable in Franklin. Confirm in your contract and with your title company.

How do seller concessions work in Tennessee purchases?

• Seller credits are negotiated in the purchase agreement and can be applied to buyer closing costs within loan program limits. Your lender and agent can structure terms.

How are property taxes prorated at closing in Williamson County?

• Taxes are prorated per your contract and local practice. Ask your title company how the county’s assessment and billing schedule affects your proration.

What closing costs do cash buyers still pay in Franklin?

• Cash buyers typically pay title and settlement fees, recording charges, and applicable prorations or HOA fees, but skip lender fees and most loan prepaids.

When do I receive my Closing Disclosure and can amounts change?

• Lenders must send it at least three business days before closing. Small changes can occur, but major changes can reset the three‑day clock. Review it with your lender and title team.