Buying a home in Georgia comes with more than a down payment. You will also cover a set of one-time expenses known as closing costs. If you are planning your budget, it helps to know what those fees include, what is customary in Georgia, and what you can negotiate. In this guide, you will learn the major line items buyers typically pay, what you often do not pay, and practical ways to estimate and reduce your costs. Let’s dive in.
What are closing costs in Georgia?
Closing costs are the fees and prepaid items needed to complete your purchase. They are separate from your down payment and are collected at closing or held in escrow. Nationally, buyers often pay a few percent of the purchase price in closing costs, but your total in Georgia will vary based on the loan, property, and local county fees.
Your lender must give you an initial Loan Estimate with key costs after you apply. At least three business days before closing, you will receive a Closing Disclosure that itemizes every charge. That document is your definitive, final number. Because county fees and state rules can change, always verify your figures with your lender and the closing attorney or title company handling your file.
What buyers typically pay
Loan-related lender charges
These are charged by your lender to originate and process your mortgage. You will generally see some or all of the following:
- Origination, processing, or underwriting fee. Standard lender charges for evaluating and funding your loan. Typically paid by the buyer.
- Application and credit report fees. Sometimes collected upfront, sometimes at closing.
- Discount points. Optional fees you can pay to reduce your interest rate. You decide whether to buy points. In some cases, a seller credit can cover them.
- Rate-lock fee. If charged, the buyer may pay this, though some lenders absorb it or it can be covered by a seller concession.
Tip: Request itemized fees and compare Loan Estimates from at least two lenders. Small differences add up.
Third-party services
These are services ordered to support your loan approval and due diligence. The buyer typically pays for:
- Appraisal. Most lenders require an appraisal to confirm value.
- Home inspections. General inspection plus optional pest/termite, HVAC, radon, sewer scope, or mold, depending on the property.
- Survey. Sometimes required by the lender or desired by the buyer to confirm boundaries and improvements.
- Flood certification. A standard check to determine if the home is in a flood zone.
- Title search and related title service fees. See the next section for how title insurance is handled in Georgia.
Title and closing services
A title company or closing attorney researches the property’s title, issues title commitments, and oversees the settlement.
- Title search and examination. Researching the chain of title, liens, and restrictions.
- Title insurance. There are two kinds of policies: an owner’s policy that protects you and a lender’s policy that protects the lender. Who pays which policy can vary by local custom and is negotiable in the contract. In some Georgia markets the seller may pay the owner’s policy while the buyer pays the lender’s policy. In others, buyers often pay both. Confirm the norm in your county with your closing agent.
- Closing or settlement fee. Charged by the title company or attorney for conducting the closing. The buyer often pays this, or the cost may be split.
Government and recording fees
These are charged by the county and state when your deed and mortgage are recorded.
- Recording fees. Counties set their own recording charges for deeds and security deeds. Expect variation between counties like Fulton, DeKalb, Cobb, and rural counties.
- State and local taxes. Georgia has state-level recording practices and may assess taxes tied to mortgage recording, sometimes referred to as intangible tax. Confirm applicability and current rates with your closing agent or the Georgia Department of Revenue. Your exact charges can depend on the size and structure of your loan and the county.
Prepaid items and escrow setup
Lenders collect certain prepaids and set up your escrow account at closing.
- Prepaid property taxes. You and the seller settle taxes based on the closing date and the county’s billing cycle.
- Homeowners insurance. Most lenders require you to prepay the first year’s premium at closing.
- Prepaid interest. Covers interest from your closing date through the end of that month.
- Initial escrow deposit. Funds held by your lender to pay future taxes and insurance as they come due.
Prorations and adjustments
You and the seller will split certain charges based on the closing date and contract terms.
- Property taxes, HOA dues, and utilities. Typically prorated. In some cases, you may reimburse the seller for dues already paid for the period after closing.
Miscellaneous items
Small fees can appear and vary by file.
- Wire, courier, and payoff handling fees. Check your Closing Disclosure and ask for a line-by-line explanation if anything is unclear.
- Real estate commission. In Georgia, commissions are typically paid by the seller, not the buyer. Confirm your specific arrangement in the contract.
What buyers often do not pay in Georgia
- Real estate commission. Standard practice is that the seller covers brokerage commissions. As a buyer, you usually do not pay this cost directly. Always verify your agreement with your agent and in the contract.
- Some title insurance premiums. Depending on local custom and negotiation, the seller may pay the owner’s title insurance premium, while you pay the lender’s policy. This is not universal, so confirm with your closing attorney or title company.
- Certain recording or closing fees. Some fees can be split or shifted through negotiation. Your agent and lender can advise on standard practice in your county.
How to estimate your closing costs
Use this simple approach to build a reliable estimate early in your search:
- Get at least two Loan Estimates.
- Apply with two lenders using the same price, down payment, and closing date assumptions so you can compare apples to apples.
- Request a preliminary title quote.
- Ask a local title company or closing attorney for an estimate including title search, title premiums, closing fee, and county recording charges for your target county.
- Ask about property taxes and HOA dues.
- Your agent can help you find current tax data and HOA schedules so you understand prorations.
- Combine the numbers.
- Add lender fees, third-party fees, government and recording fees, prepaids, and your initial escrow deposit. Keep down payment separate.
- Recheck at contract.
- Once you are under contract, your lender will update figures, and your Closing Disclosure will finalize them at least three business days before closing.
Ways to reduce or shift closing costs
You have several levers to lower your cash to close without sacrificing long-term value.
- Shop your lender. Compare origination fees and the cost of discount points across at least two lenders. Small fee differences can meaningfully change your total.
- Ask for seller concessions. You can negotiate for the seller to cover some or all of your closing costs. What is allowed depends on your loan program and the market. Your agent can advise on strategy and what is typical for your price point and county.
- Use assistance programs if eligible. Georgia offers state and sometimes local programs that provide down payment or closing cost assistance, especially for first-time buyers. Availability and requirements change, so speak directly with program administrators and your lender.
- Negotiate title-related allocations. In some Georgia markets, it is customary for the seller to pay the owner’s title policy. If local practice supports it, ask for that arrangement in your contract.
- Consider your rate and points. Buying points raises closing costs now but can lower your monthly payment. Evaluate the breakeven period with your lender before you decide.
- Time your closing date. A late-in-the-month closing can reduce prepaid interest. Confirm the trade-offs with your lender and moving schedule.
Where to verify Georgia-specific fees
Because Georgia’s recording and tax practices can vary by county and change over time, verify your numbers with trusted sources:
- Your lender and closing attorney/title company. Ask for a detailed fee sheet for your county and loan amount, including any state or county recording taxes.
- County Clerk or Recorder’s Office. Confirm current deed and security deed recording fees and any local requirements.
- Georgia Department of Revenue. Check statewide rules on mortgage recording and intangible tax applicability.
- Georgia Department of Community Affairs. Review available homebuyer assistance programs and eligibility.
- Georgia Real Estate Commission and local REALTOR associations. Learn about customary who-pays practices in your target market.
Quick timeline: estimate to closing
- Application. You apply for a loan and receive a Loan Estimate within three business days.
- Due diligence. You order inspections, the lender orders the appraisal, and your title company begins the title search.
- Final numbers. You receive your Closing Disclosure at least three business days before closing. Review it line by line and ask questions immediately.
- Closing day. Bring your photo ID and arrange your final wire or certified funds per the closing attorney’s instructions. Confirm routing details by phone to avoid wire fraud.
Final thoughts and next steps
Closing costs can feel like a maze, but with the right plan you can forecast, negotiate, and verify every line before you sign. Start by collecting two Loan Estimates, requesting a preliminary title quote for your county, and talking with your lender about seller concessions and program eligibility. If you want a local, senior-level perspective on how these costs typically shake out in Athens, Oconee, and across Northeast Georgia, we are here to help.
Have questions about your exact numbers or how to structure a competitive offer that also reduces cash to close? Schedule a personalized market consultation with Jennifer Westmoreland & Associates. We will walk you through a clean estimate, negotiation options, and a closing plan that protects your interests.
FAQs
How much do Georgia buyers usually pay at closing?
- Closing costs are separate from your down payment and often total a few percent of the price, but exact amounts vary by loan type, county fees, and property specifics; your Loan Estimate and Closing Disclosure will show your numbers.
Can a Georgia seller pay my closing costs?
- Yes, seller concessions are possible and common, but they are limited by your loan program and depend on market conditions and negotiation.
What closing costs are negotiable for buyers?
- You can often negotiate origination or discount points, some third-party fees by shopping, and who pays certain title or closing fees; government charges and the appraisal fee are typically fixed.
Will I know my exact amount before closing in Georgia?
- Yes, your lender must provide a Closing Disclosure at least three business days before closing that lists final, exact figures for both buyer and seller.
Do buyers pay real estate commission in Georgia?
- Typically no; commissions are usually paid by the seller, but confirm your specific arrangement in your buyer representation agreement and contract.
What is Georgia’s intangible tax on mortgages?
- Georgia may assess taxes tied to mortgage recording that can affect closing costs; confirm current rules and amounts with your lender, closing attorney, or the Georgia Department of Revenue.
Are there Georgia programs to help with closing costs?
- Georgia offers state and sometimes local assistance programs that can help with down payment and closing costs, subject to eligibility and funding availability; ask your lender and program administrators for current options.
