Closing day should feel exciting, not confusing. If you are buying or selling in Monroe or anywhere in Walton County, you want a clear picture of what closing costs cover, who usually pays them in Georgia, and how your loan and timing can change the final number. This guide breaks down the common line items for both sides, highlights local customs, and explains what is different with new construction. You will walk away ready to budget with confidence and keep your transaction on track. Let’s dive in.
Closing costs basics in Georgia
“Closing costs” are the third-party fees, prepaids, escrow deposits, and any credits that are paid at settlement in addition to your down payment or netted from the seller’s proceeds. These costs pay lenders, title companies or closing attorneys, local governments, and service providers like appraisers and inspectors. Federal disclosure rules apply to mortgage loans in Georgia, so you receive standardized forms that outline these costs before you sign.
Who usually pays what
Buyers typically cover lender-related fees, the lender’s title insurance policy, most inspections, prepaid interest, the first year of homeowner’s insurance, and initial escrow deposits. Sellers usually pay real estate commissions, mortgage payoffs, their share of prorated taxes and HOA dues, and certain closing or attorney fees. Some items are negotiable in Georgia, and local custom in Walton County may influence who pays the owner’s title policy or closing attorney fee.
Buyer closing costs in Monroe
Below are the common buyer-side items you may see on your Loan Estimate and Closing Disclosure. Exact amounts vary by lender, loan program, and contract terms.
- Loan origination, application, and underwriting fees paid to your lender.
- Optional discount points if you choose to buy down your rate, sometimes covered by seller credits within program limits.
- Appraisal fee required by the lender.
- Credit report fee.
- Lender-required certifications such as flood determinations or a termite report when required by the lender.
- Title search and lender’s title insurance policy, which buyers typically pay for in Georgia.
- Owner’s title insurance policy, sometimes paid by sellers in Georgia but negotiable by contract and local custom.
- Closing, escrow, or settlement fee charged by the closing agent or attorney, which may be paid by one party or split based on local practice.
- Recording fees for the deed of trust or security deed and other mortgage documents, plus deed recording fees depending on local custom.
- Prorated property taxes after closing and an initial tax escrow deposit if the lender requires an escrow account.
- Prepaid interest that covers the days from closing to the start of your first mortgage payment.
- Homeowner’s insurance premium for the first year, and mortgage insurance premiums if your loan program requires them.
- HOA dues and any transfer or estoppel fees as specified by the HOA and your contract.
- Home, termite, septic, or well inspections.
- Survey if required by your lender or if you elect to obtain one.
- Wire and courier fees related to funding.
Seller closing costs in Monroe
Seller-side expenses are often fewer in number but larger in size, since commissions and loan payoffs usually make up the bulk of costs.
- Real estate broker commissions, typically the largest seller expense.
- Payoff of existing mortgage or home equity loans, plus any release or reconveyance fees.
- Seller-side closing or attorney fee based on local custom, which may be paid by the seller or split.
- Owner’s title insurance premium, which many Georgia sellers pay, although it is negotiable by locality and contract.
- Prorated property taxes, HOA dues, and utility adjustments for the period up to closing.
- Any transfer or conveyance taxes and deed recording fees as required, with local practice guiding allocation.
- Home warranty if offered as an incentive to the buyer.
- Seller concessions or credits toward buyer closing costs if negotiated.
- Agreed repairs or credits based on inspection findings.
- Brokerage administrative or transaction fees if charged by the listing brokerage.
Title, attorney, and local custom
Georgia closings are commonly handled by local title companies or real estate attorneys, and practices can vary by county. In many Georgia markets, sellers pay for the owner’s title insurance policy while buyers pay for the lender’s policy. In Walton County and the Monroe area, ask your closing attorney or agent how closing or attorney fees are commonly allocated, because customs may differ between rural areas and neighborhoods closer to metro corridors. Your purchase and sale agreement can set who pays specific items, so lean on local guidance before you finalize terms.
Loan type and timing rules that change totals
Federal disclosure rules shape your timeline. You must receive a Loan Estimate within three business days of applying for a mortgage. You must receive a final Closing Disclosure at least 3 business days before you sign, so last-minute fee changes can push your closing date if they trigger a new disclosure timeline.
Escrows and prepaid items
Many lenders require an escrow account for property taxes and homeowner’s insurance. At closing, you typically deposit an initial amount to fund upcoming bills, and lenders may collect a small cushion, commonly up to two months, as allowed by RESPA. You will also prepay interest from the day you close to the first day of your next payment cycle, and you will usually pay the first year of your homeowner’s insurance premium.
Seller contribution limits by program
If you negotiate seller credits, loan programs cap how much the seller can contribute.
- FHA loans generally allow seller contributions up to 6 percent of the sales price.
- VA loans commonly reference a 4 percent cap on concessions, confirmed with your VA lender.
- USDA programs vary, so the lender confirms the allowed amounts.
- Conventional loans have tiered limits based on down payment: up to 3 percent if you put less than 10 percent down, up to 6 percent with 10 to 25 percent down, and up to 9 percent with more than 25 percent down.
Always confirm current limits with your lender, since program rules can change and may have specific definitions for what counts as a concession.
Program-specific costs to expect
- FHA loans can include an upfront mortgage insurance premium that is paid at closing or financed into the loan.
- VA loans include a VA funding fee that can be paid at closing or financed, depending on your choice and eligibility.
- Conventional loans may include private mortgage insurance, either paid monthly or structured with part of it paid at closing.
New construction and builder fees in Walton County
Buying a new home adds a few unique costs and logistics. Builders may itemize community-related fees or offer incentives that offset your closing costs within loan-program limits. If you use a construction-to-permanent loan, interest accrued during the build may be due at conversion to your permanent mortgage or rolled in per your lender’s structure.
Common builder-related items include:
- Lot premiums for preferred homesites.
- Impact fees, water or sewer tap and meter fees, and other utility connection charges billed at closing.
- HOA initiation fees or working capital contributions for new subdivisions.
- A builder administrative or closing fee, which is often negotiable.
- Lien waivers from subcontractors and suppliers to protect against mechanic’s liens.
- Certificate of Occupancy requirements that can affect closing timing, with temporary COs sometimes leading to escrow holds until final sign-off.
- Warranty or punch-list holds where a small portion of funds may be held until specified items are completed.
- Builder-paid concessions that can reduce your cash to close, subject to your loan’s contribution limits and full disclosure.
Local note: in Monroe and across Walton County, utility connection fees and permitting charges vary by subdivision and service provider. Ask early about any community-specific fees so you can budget ahead of time.
Budget example for Monroe
Use the following as a planning model only, since real numbers depend on your lender, program, contract, and local fees.
- Example price: 300,000 dollars.
- Buyer costs: a typical range is 2 to 5 percent of the purchase price for mortgage buyers, or about 6,000 to 15,000 dollars. This often includes lender charges, the appraisal, title and the lender’s policy, inspections, prepaid interest, your first-year insurance premium, and initial escrow deposits.
- Seller costs: the largest single cost is usually real estate commissions. For example, a 6 percent commission on 300,000 dollars is 18,000 dollars. The seller also covers payoffs, prorations, and certain closing or title fees, and in many Georgia markets may pay the owner’s title policy depending on local custom.
- New construction additions: builder or administrative fees, utility tap or impact fees, and construction interest can add several hundred to several thousand dollars depending on the community and municipality.
These are examples to plan a budget only; actual costs must be pulled from the Loan Estimate for buyers and the settlement statement for sellers.
Quick checklist for Monroe buyers
- Get your Loan Estimate from each lender you consider and compare line items.
- Ask your agent and closing attorney who typically pays the owner’s title policy in Walton County.
- Budget early for inspections, the appraisal, and escrow reserves.
- Verify wiring instructions directly with the closing agent using trusted phone numbers to prevent wire fraud.
- Confirm HOA transfer or setup fees and any utility connection charges for your subdivision.
- Review your Closing Disclosure at least 3 business days before closing.
Quick checklist for Monroe sellers
- Estimate broker commissions and request payoff statements for all mortgages or liens.
- Ask for a seller-side closing statement early so you can confirm net proceeds.
- Clarify who will pay the owner’s title policy, settlement fee, and prorations based on local practice and your contract.
- If you plan to offer buyer credits, verify allowable amounts under the buyer’s loan program.
Avoid delays and protect your funds
Timing matters. Because you must receive your Closing Disclosure 3 business days before closing, new fees or late changes can delay settlement. Keep communication tight with your lender and closing attorney so documents go out on time.
Wire fraud prevention is critical. Always call a verified number for your closing attorney or title company to confirm wiring instructions, and never rely on email alone. Consider sending a small test wire first if your closing agent allows it. Double-check every account number before you authorize a transfer.
Ready for a clear, local walkthrough of your numbers and next steps? Reach out to the Monroe team that understands both new construction and resale. Connect with Platinum Key Realty of Georgia to plan your move with confidence.
FAQs
Who usually pays for title insurance in Georgia?
- Local custom varies. In many Georgia transactions sellers pay the owner’s title policy, while buyers pay the lender’s policy. Confirm with your closing attorney in Walton County.
How much should a Monroe buyer budget for closing costs?
- A common planning range is 2 to 5 percent of the purchase price for mortgage buyers, plus your down payment. Your Loan Estimate and Closing Disclosure show exact figures.
Do lenders require escrow accounts at closing?
- Often yes. Many lenders require an initial escrow deposit for property taxes and insurance, and RESPA allows a cushion that is commonly up to two months.
Are builder fees negotiable on new construction in Walton County?
- Many builder-imposed fees and incentives are negotiable, but municipal charges like impact or tap fees are not. Always clarify which costs are builder versus municipal.
How do loan programs affect seller-paid credits?
- Programs cap seller contributions. FHA generally allows up to 6 percent, VA commonly references 4 percent, USDA varies by program, and conventional loans range from 3 to 9 percent based on down payment.
