Buying a home in Cary is exciting, but the final number you wire at closing can catch you off guard if you have not planned for it. You are not alone if you are unsure what “cash to close” includes or who pays what in North Carolina. In a few minutes, you will know the major cost buckets, typical ranges for Cary and Wake County, and how to avoid last‑minute surprises. Let’s dive in.
What closing costs cover
Closing costs are everything you pay to finalize your purchase beyond your down payment. In Cary, a simple rule of thumb is to budget about 2 to 5% of the purchase price for buyer closing costs, not including your down payment. Your final number depends on your loan type, rate and points, negotiated terms, property taxes and HOA fees, and whether the home is a condo, townhome, or single‑family.
Most buyer costs fit into these buckets:
- Lender and loan fees
- Title services and title insurance
- Closing attorney/settlement fees
- Prepaid taxes, insurance, and escrow deposits
- Recording and county charges
- Inspections, surveys, and other third‑party items
How much to budget in Cary
Here is how the 2 to 5% guideline looks at common Cary price points:
- $350,000 condo or townhome: roughly $7,000 to $14,000 in buyer closing costs
- $550,000 single‑family home: roughly $13,750 to $24,750
- $800,000 new construction: roughly $20,000 to $40,000
These ranges reflect typical lender fees, title services, attorney/recording, inspections, and prepaid items like taxes and insurance. Actual numbers vary by loan program, your insurance premium, your closing date, and HOA requirements.
What you will likely pay as a buyer
Lender and loan fees
- Origination or broker fee: often 0.5 to 1.5% of the loan amount, or a flat fee. Some lenders advertise “no origination,” but may recover costs in the rate or other charges.
- Discount points: optional; 1 point equals 1% of the loan to reduce your rate. Buying points increases upfront cash.
- Appraisal: generally $400 to $800 for typical suburban homes.
- Credit report, application, and admin: often $20 to $100 for credit plus $300 to $1,200 for underwriting or processing.
- Rate lock: some lenders charge if you lock for a long period or extend a lock.
- Mortgage insurance: if required by your program, the first payment or a portion may be collected at closing.
Title services and title insurance
- Two policies exist: a lender’s title policy and an owner’s title policy. In many Triangle transactions, the buyer pays the lender’s policy and the seller pays the owner’s policy. That is custom, not a rule, and your contract controls who pays what.
- Title premiums are one‑time charges based on price and loan amount and can range from a few hundred dollars to several thousand. Title search, exam, courier, and similar fees often total $200 to $600.
Closing attorney/settlement fees
- North Carolina closings are attorney‑driven. Your closing attorney prepares the settlement statement, coordinates funding, and records documents.
- Typical buyer settlement fees run about $300 to $1,200 for routine purchases, depending on complexity and whether the firm also represents your lender.
Prepaid items and escrow deposits
- Property taxes: Wake County taxes are prorated. You usually reimburse the seller for the portion of the year you will own the home, and your lender often collects 2 to 3 months of tax escrow at closing.
- Homeowners insurance: lenders require an active policy. Expect to pay the first year’s premium at closing and possibly a few months of escrow.
- Prepaid mortgage interest: covers interest from your closing date to the start of your first payment.
- HOA items: some communities charge transfer or administration fees. Dues are often prorated and some condos require prepaid reserves or special assessments.
Recording and county charges
- The Wake County Register of Deeds charges to record your deed and deed of trust. These fees are typically modest and depend on the number of documents and pages recorded.
- North Carolina’s transfer tax practices vary by locality. Confirm whether any local excise or transfer taxes apply to your Cary property with your closing attorney.
Inspections, surveys, and other costs
- General home inspection: typically $300 to $700, with add‑ons for termite, radon, chimney, sewer scope, or HVAC.
- Survey: sometimes required or recommended. Budget several hundred dollars to around $1,500 if a new survey is needed; in some established neighborhoods, a recorded plat may be sufficient.
- Septic or well inspections: if applicable, costs vary by property.
What sellers usually pay in North Carolina
It helps your negotiation strategy to know typical seller expenses:
- Real estate commission: commonly the largest seller cost and often 5 to 6% of the sale price in many markets. This is negotiable.
- Owner’s title insurance: custom in many NC markets is for the seller to pay this, but it is negotiable.
- Seller attorney deed prep and related fees: often $200 to $800, more if there are complex payoffs or liens.
- Prorations and agreed credits: sellers pay property taxes and HOA dues through the day of closing and any negotiated credits or repairs.
- Mortgage and lien payoffs: paid from seller proceeds at closing.
Total seller costs often land around 6 to 10% of the sale price once commission and other items are included. Your purchase contract decides the final allocation.
Timeline: the estimate and the final numbers
- Request a Loan Estimate from your lender early. It lists your expected loan fees and other costs.
- At least 3 business days before closing, your lender must deliver the Closing Disclosure. Compare it to the attorney’s settlement statement so your cash to close is correct.
- Ask your attorney or title company for an itemized estimated settlement statement early in the process. It shows who pays what and lets you spot issues before closing week.
Cary buyer checklist to avoid surprises
Early steps (before you are under contract)
- Get preapproved and ask for a sample Loan Estimate for your target price and program.
- Look up estimated Wake County property taxes for similar homes to understand proration and escrow.
- Confirm whether the seller will pay the owner’s title policy or if you should plan for it.
After contract is signed
- Request the HOA resale certificate or estoppel right away to uncover transfer fees, dues, and any special assessments.
- Order inspections quickly and share any required reports with your lender or attorney.
- Ask your closing attorney or title company for an itemized closing estimate.
- Verify whether your lender requires escrow accounts for taxes and insurance and how many months of reserves will be collected.
Final 3 days before closing
- Review your Closing Disclosure against the attorney’s settlement statement and resolve any differences.
- Call your closing attorney to confirm wiring instructions and procedures to avoid fraud.
- Arrange certified funds or a wire as directed and bring required ID to closing.
New construction and other variables
- Builder contracts may allocate fees differently and add items like impact or utility connection fees. Read these sections closely.
- Rate environment matters. If you choose to buy discount points to lower your rate, your upfront cash to close increases.
- Special assessments can affect your bottom line. HOA documents and municipal notices may disclose projects that add fees now or later.
Quick example: $550,000 Cary single‑family
Estimated buyer closing costs: about 2.5 to 4.5% of price, or $13,750 to $24,750, broken out roughly as:
- Lender fees and appraisal: $1,500 to $4,500
- Title and lender policy plus related fees: $900 to $2,200
- Prepaid taxes and insurance plus escrow cushion: $3,500 to $10,000
- Inspections and survey: $500 to $2,000
- Attorney and recording: $400 to $1,200
Use this as a planning tool only. Your lender and closing attorney will provide figures specific to your home, loan, and timing.
Wire safety and bringing funds
Wire fraud is real. Always verify wiring instructions by calling your closing attorney at a known number before sending money. Never rely solely on emailed instructions or links. If you are bringing a cashier’s check, confirm the payee name, amount, and acceptable ID in advance.
Ready to run your numbers?
If you want a clean, Cary‑specific estimate and help negotiating who pays what, reach out. As a local advisor who guides buyers through every step, Steve Jourdain will coordinate with your lender and closing attorney so your cash to close is accurate and your closing day is smooth.
FAQs
What are typical buyer closing costs for a Cary, NC home?
- Most buyers should budget about 2 to 5% of the purchase price for closing costs, excluding the down payment. Your loan program, taxes, HOA, and timing drive the final amount.
In Wake County, who pays for title insurance on a home purchase?
- Custom in many Triangle transactions is buyer pays the lender’s title policy and seller pays the owner’s policy, but this is negotiable and the contract decides who pays what.
How are Wake County property taxes handled at closing on a Cary home?
- Taxes are prorated so each party pays for their time of ownership, and lenders often collect 2 to 3 months of tax escrow at closing to pay future bills.
When will I receive my Closing Disclosure for a Cary purchase?
- Your lender must provide it at least 3 business days before closing. Compare it to the attorney’s settlement statement to confirm your cash to close.
Which closing costs can a Cary homebuyer negotiate or cover with seller credits?
- You can negotiate seller credits and who pays some fees, including the owner’s title policy and certain HOA transfer charges, depending on your contract.
How much should I expect to pay for inspections and a survey in Cary?
- General home inspections often run $300 to $700, add‑ons extra; a new survey can range from several hundred dollars up to about $1,500 depending on complexity.
