Franklin Closing Costs: What Buyers Should Expect

Wondering how much cash you really need to bring to the closing table in Franklin? With home prices running higher than much of Tennessee, the numbers can feel unclear. You deserve a simple, local guide that helps you budget with confidence and avoid last‑minute surprises. In this post, you’ll learn what closing costs include, how to estimate them for Franklin and Williamson County, and smart steps to keep them in check. Let’s dive in.

What closing costs include in Franklin

Closing costs are the one‑time fees and prepaid items you pay when the title transfers and your loan funds. They do not include your down payment. For many buyers, the total runs about 2%–5% of the purchase price, depending on your loan type, credits from the seller, and whether you choose to pay discount points.

You will receive a Loan Estimate from your lender within 3 business days of applying. It outlines expected costs. At least 3 business days before closing, you will receive a Closing Disclosure with the final amount you need to bring. Review both carefully and ask questions early.

Prepaids and escrow deposits can make your “cash to close” higher than just lender and title fees. Plan for the full amount shown on your Closing Disclosure.

The main cost categories

Lender and loan charges

These are the fees to process and approve your mortgage. They often total about 0.5%–1.5% of the purchase price, excluding optional discount points.

• Origination or application fee, plus underwriting and processing
• Credit report, tax service, flood determination
• Appraisal fee
• Optional discount points if you buy down the interest rate

Title and settlement fees

These cover researching and insuring clear ownership, and managing the closing.

• Title search and examination
• Title insurance: a lender’s policy is typically paid by the buyer, while the owner’s policy is negotiable and varies by local custom
• Settlement or closing fee for document prep and funds disbursement

This category often runs 0.3%–1.0% of the purchase price, though several charges are fixed amounts rather than percentages.

Government recording and transfer fees

Williamson County recording fees are fixed per document and can vary by page count. Budget a few hundred dollars up to around one thousand, depending on the documents recorded. Practices for transfer or documentary fees vary in Tennessee. Confirm current requirements and who pays with your title company.

Prepaids and escrow deposits

This is where buyers are often surprised. These items commonly add 1%–2% of the purchase price, and can be higher in areas with higher taxes or insurance costs.

• Daily mortgage interest from closing until your first payment date
• First year of homeowners insurance (or binder) paid at closing
• Property tax prorations based on the closing date
• Initial escrow deposits for taxes and insurance

Other costs

Depending on the property and your loan, you may see:

• HOA transfer or initiation fees
• Survey, pest inspection, or well/septic inspections if needed
• Attorney fees, courier, and wire fees

These can add a few hundred to a few thousand dollars.

Franklin and Williamson County specifics

Franklin is an affluent, fast‑moving market. Because prices are higher, the same 2%–5% guideline results in larger dollar amounts than in many other Tennessee areas. Use percentages to scale your budget to your target price point.

Recording is handled by the Williamson County Register of Deeds. Fees are fixed per document, so confirm the current schedule with your title company or the county office. You should also expect a tax proration line item on your Closing Disclosure. Tennessee property taxes are typically prorated at closing based on the timing of your purchase.

Title practice varies by neighborhood and price segment. Buyers commonly pay for the lender’s title policy. The owner’s title policy is negotiable and may be paid by either party depending on local custom and your contract. Your Realtor and title company can advise on what is typical for your specific area in Franklin.

Tennessee’s approach to transfer or documentary fees differs from states that have a universal transfer tax. Local documentary or stamp fees may apply. Ask your title company which fees are required for your transaction and who pays them.

If you are exploring down payment assistance, the Tennessee Housing Development Agency offers mortgage and assistance programs. Program rules can affect closing costs and cash needed at closing. Ask your lender about current THDA options and eligibility.

How much to budget: two Franklin examples

Below are illustrative ranges to help you plan. Your actual costs will depend on your loan, property, and contract terms. Use your Loan Estimate and title quote for precision.

Scenario A: $500,000 purchase price

• Total buyer closing costs at 2%–5%: $10,000–$25,000
• Lender/loan charges: $2,500–$7,500
• Title and recording: $2,000–$5,000
• Prepaids and escrows: $5,000–$10,000
• Miscellaneous: $500–$1,500

Scenario B: $800,000 purchase price

• Total buyer closing costs at 2%–5%: $16,000–$40,000
• Lender/loan charges: $4,000–$12,000
• Title and recording: $3,200–$8,000
• Prepaids and escrows: $8,000–$16,000
• Miscellaneous: $800–$2,500

These examples show why percentages matter. As prices rise, the same range produces larger dollar amounts. Prepaids and escrow deposits are often the biggest driver of your final cash to close.

Smart ways to keep costs in check

• Compare lenders and look closely at origination fees and discount points.
• Ask for lender credits or review rate and point tradeoffs.
• Discuss seller concessions with your agent. Limits depend on your loan program and negotiation.
• Avoid optional services you do not need.

Your next steps in Franklin

• Apply with a lender early and request your Loan Estimate within 3 business days of application.
• Get at least two Loan Estimates to compare fees, points, and required escrows.
• Request a preliminary title and settlement quote from a Franklin or Williamson County title company.
• Ask your agent about local norms for who pays the owner’s title policy, recording fees, and typical seller concessions.
• Confirm current recording fees and how property tax prorations work for your closing date.
• Build a contingency in your budget, such as 5% of the purchase price, for changes or unexpected items.
• Expect your Closing Disclosure at least 3 business days before closing. Review it promptly and ask questions.
• Arrange certified funds or a wire in advance. Confirm wiring instructions directly to avoid fraud.

Buying in Franklin should feel clear and well‑planned. If you want a tailored estimate of your cash to close and support negotiating credits or timing, request a private consultation with Angela Peach for white‑glove guidance.

FAQs

How much should a Franklin buyer bring to closing?

• Your cash to close equals down payment plus closing costs and prepaids, minus earnest money and any seller credits. Use your Closing Disclosure for the final number.

Can a seller in Franklin pay some of my closing costs?

• Yes. Sellers can agree to concessions, but limits depend on your loan program and the negotiated contract. Your lender must approve the structure.

Can I roll closing costs into my mortgage?

• Some costs can be financed through rate options or points, but many fees, prepaids, and escrow deposits are due at closing. Financing increases your loan amount and payment.

Are any buyer closing costs tax‑deductible?

• Some items, like mortgage interest or mortgage insurance, may be deductible. Title insurance and most closing fees are not. Consult a tax professional.

What if my closing costs come in higher than expected?

• Ask your lender for a corrected Closing Disclosure and an explanation of changes. You can request credits, adjust rate and point choices, or negotiate with the seller.

How can I reduce my Franklin closing costs?

• Compare lender fees, negotiate seller concessions, avoid optional add‑ons you do not need, and ask about lender credits or rate and point tradeoffs.