Buying in Nashville comes with one big question: how much cash will you need at closing? If you are budgeting for down payment and moving costs, the add-on fees can feel unclear. You are not alone. Most buyers want a simple, local guide that spells out what you will pay, what is negotiable, and how to plan before you start touring homes.
In this post, you will learn the typical closing cost categories for Nashville buyers, who usually pays each item, how Davidson and Williamson County practices can differ, and practical steps to estimate your cash to close. You will also see example estimates to help you set a realistic budget. Let’s dive in.
What closing costs cover in Nashville
In the Nashville area, buyers typically pay closing costs equal to about 2 percent to 5 percent of the purchase price. This range does not include your down payment. Your final number depends on your loan type, lender fee structure, the title company, the property price, county-level recording fees, and what you negotiate in your contract.
Closing costs fall into a few buckets:
- Loan-related charges
- Title and settlement services
- Prepaids, escrows, and prorations
- Inspections and due diligence
- Miscellaneous fees and logistics
Your lender is required to give you a Loan Estimate within three business days of a completed application. That document outlines projected closing costs and the estimated cash you will need at closing. You will receive a final Closing Disclosure a few days before closing that shows the exact numbers.
What buyers typically pay
Loan-related charges
These are common when you finance your purchase:
- Origination, underwriting, and processing fees - lender charges to approve and produce your loan
- Discount points - optional upfront cost that lowers your interest rate; each point equals 1 percent of the loan amount
- Appraisal fee - independent valuation ordered by the lender
- Credit report fee - cost for pulling your credit
- Other state or recording-related mortgage taxes or stamps - varies by state and county rules
Who usually pays: You, unless you negotiate seller-paid credits. Your lender will itemize these on your Loan Estimate.
Title and settlement services
These protect ownership and ensure a clean transfer:
- Title search and exam - reviews the property’s history for liens or issues
- Lender’s title insurance policy - required by most lenders, protects the lender
- Owner’s title insurance policy - optional but strongly recommended for buyers; one-time premium
- Settlement or closing fee - paid to the title or escrow company handling your closing
- Survey fee - only if required for your transaction or lender
- Recording fees - county fees to record the deed and mortgage
- Transfer and documentary taxes - if applicable under state or local rules
Who usually pays: The buyer typically pays the title search, lender’s title policy, and recording of the mortgage. Owner’s title insurance and some recording costs are negotiable in the purchase contract. Practices vary by property type and current market conditions.
Prepaids, escrows, and prorations
These are timing-driven items that depend on your closing date:
- Homeowner’s insurance - you usually pay the first year at closing
- Escrow reserves - your lender may collect a few months of taxes and insurance to fund your escrow account
- Property tax prorations - buyer and seller split the bill based on the portion of the year each owns the home
- HOA dues and transfer fees - if the property has an HOA, there may be prorated dues and document or transfer fees
Who usually pays: You fund the first year of insurance and escrow reserves. Prorations are split based on closing date and local billing cycles.
Inspections and due diligence
Most buyers choose several inspections during the option or inspection period:
- General home inspection
- Termite or pest inspection
- Radon, sewer scope, or specialty inspections like roof or HVAC
- HOA document review fee if applicable
Who usually pays: You pay for inspections at the time of service or at closing. These are relatively small compared to your down payment but important for planning.
Miscellaneous and logistics
- Earnest money deposit - typically 1 percent to 2 percent of the purchase price, applied to your cash to close
- Courier or wire fees and notary fees
- Utility deposits once you transfer accounts
Who usually pays: The buyer. Earnest money is held in escrow and applied to your final funds at closing if the transaction proceeds.
Nashville vs. Williamson County: what changes
While the 2 percent to 5 percent rule of thumb applies in both counties, the dollar amounts can be different:
- Price levels - Williamson County often has higher median home prices than many parts of Davidson County. Higher prices lead to higher absolute costs for percentage-based or price-scaled fees.
- Recording fees and practices - Registers of Deeds in Davidson and Williamson Counties set their own recording fee schedules and document requirements. Your title company will confirm the correct fees for your property and loan type.
- Property tax timing - Tax rates and billing cycles vary by county and municipal jurisdiction. Your proration at closing will reflect the local schedule and your closing date.
- HOA prevalence - Some Williamson County communities have more planned developments and HOAs, which can add document or transfer fees.
- Recording and possession logistics - Recording turnaround can vary by county, which may affect the timing of final recording and possession.
The bottom line: plan for similar percentages, but expect different line items and dollar totals depending on price point, HOA rules, and each county’s fee schedule.
Example cash-to-close estimates
These examples are for planning only. Your numbers will depend on your loan, title company, exact county fees, and any seller credits you negotiate.
Example A - Davidson County purchase price: 400,000 dollars
Total buyer closing costs, excluding down payment: roughly 2 percent to 5 percent, or about 8,000 to 20,000 dollars.
Approximate line items:
- Loan fees, appraisal, credit report, and optional points: 1,500 to 6,000 dollars
- Title search, owner and lender title insurance, and closing fee: 1,000 to 3,500 dollars
- Recording fees and any applicable transfer or documentary taxes: 200 to 1,000 dollars
- Prepaids and escrow reserves for insurance and taxes: 1,200 to 3,000 dollars
- Inspections, HOA documents, and possible survey: 400 to 1,500 dollars
- Prorations for taxes and HOA: variable based on timing
- Earnest money: often 1 percent to 2 percent of the price, applied to your cash to close
Example B - Williamson County purchase price: 700,000 dollars
Total buyer closing costs, excluding down payment: roughly 2 percent to 5 percent, or about 14,000 to 35,000 dollars.
Categories are the same as above. The higher purchase price and loan amount typically increase the dollar totals, even when the percentage range remains similar.
How to estimate your number
Before you start touring
- Get prequalified and request a Loan Estimate from your lender. This gives you a line-by-line view of projected costs.
- Ask your lender for a full cash-to-close estimate that includes down payment, closing costs, prepaid items, and escrow reserves.
- Call one or two local title companies for quotes on title search, settlement fees, lender and owner’s title policies, and expected recording fees for the county you are targeting.
- Ask the listing agent or the county tax office for the most recent property tax bill and billing cycle to estimate prorations.
- Track your earnest money deposit. It will reduce what you need to bring to closing if you move forward.
Documents and numbers to request
- Loan Estimate and later the Closing Disclosure
- Seller’s property tax and HOA statements
- Title company fee worksheet, including title policies and settlement fee
- County recording fee schedule for your target county
- Prequalification for state or local assistance programs if you plan to apply
Ways to reduce cash to close
- Negotiate seller concessions - ask the seller to contribute to your closing costs as part of your offer
- Ask about lender credits - you may accept a slightly higher interest rate in exchange for credits toward closing costs
- Explore assistance programs - Tennessee offers programs for eligible buyers that can help with down payment or closing costs; availability and rules vary
- Roll certain costs into the loan - this raises your loan amount and monthly payment, so review the trade-offs with your lender
- Shop title services - premiums and settlement fees can vary by company; ask about any discount when both owner and lender policies are issued together
What to bring to closing
- Certified funds or a verified wire for the final amount - always confirm wire instructions by calling the title company using a known phone number
- Government-issued ID
- Proof of homeowner’s insurance binder
- Any remaining documents requested by your lender or the title company
Pro tips for a smooth Nashville closing
- Start your estimates early. Your first Loan Estimate becomes your baseline and helps you compare lenders.
- Keep an eye on the calendar. Closing near tax due dates can change prorations and escrow requirements.
- Clarify who pays for owner’s title insurance in your offer. It is negotiable and can meaningfully impact your cash to close.
- Plan for HOA-related items if applicable. Ask upfront about transfer fees, move-in fees, and dues schedules.
- Confirm recording timelines with your title company. County recording practices can affect when you receive keys and when utilities should transfer.
- Protect your funds. Wire fraud is a real risk. Do not act on last-minute email changes to wiring instructions. Call your title company to verify before sending funds.
A clear plan removes stress from closing week. With the right team and numbers in hand, you can focus on the home, not the paperwork.
Ready to run your numbers and map out a winning offer strategy in Nashville or Williamson County? Reach out to Anna Rose Marangelli to get a tailored estimate, local title quotes, and a step-by-step plan for your purchase.
FAQs
How much do Nashville buyers usually pay at closing?
- Most buyers pay about 2 percent to 5 percent of the purchase price in closing costs, plus any down payment. Your Loan Estimate will give you a more precise figure.
Who pays for owner’s title insurance in the Nashville area?
- It is negotiable. In some transactions the seller pays the owner’s policy, while in others the buyer does. Confirm the terms in your purchase contract.
Do Davidson and Williamson Counties charge different recording fees?
- Yes. Each county sets its own recording fee schedule and document requirements, so your title company will confirm the correct fees for your property and loan type.
Can I roll my closing costs into the mortgage?
- Often you can roll certain costs into the loan or accept lender credits in exchange for a higher rate. This raises your loan amount and monthly payment, so discuss the trade-offs with your lender.
Are there programs that help with closing costs in Tennessee?
- Yes. State and local programs can offer down payment or closing cost assistance depending on eligibility and availability. Ask your lender and agent to review current options with you.
