Buying in Decatur and wondering how much cash you’ll need on top of your down payment? You’re not alone. Closing costs can feel like a moving target, especially if this is your first time buying or you’re moving up to a higher price point. In this guide, you’ll learn what closing costs usually include, what is typical for Decatur and DeKalb County, how to estimate your total, and smart ways to keep costs in check. Let’s dive in.
What “closing costs” cover in Decatur
Closing costs are the one-time fees and prepayments you pay at settlement to get your loan funded and your home recorded in your name. They are separate from your down payment.
A practical rule of thumb for Decatur buyers is 2% to 5% of the purchase price. On a $400,000 home, that’s roughly $8,000 to $20,000. Your exact total depends on your loan type, whether you pay discount points, your closing date, and property-specific items like HOA fees.
To protect you, federal rules require lenders to provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing. These documents show your specific costs in writing so you can review and compare.
The big four cost buckets
Think of your closing costs in four main groups. Knowing these helps you budget and ask better questions.
Lender fees
These are the charges tied to your mortgage.
- Origination, processing, and underwriting: often 0.5% to 1.5% of the loan amount, or a flat fee.
- Discount points: optional. Each point costs 1% of the loan amount to reduce your interest rate.
- Appraisal: typically $400 to $800 in the metro Atlanta area, depending on property type.
- Credit report: usually under $50 to $100.
- Mortgage insurance: may be required depending on your loan program. Some programs have upfront premiums, while others charge monthly.
Tip: Ask your lender for scenarios with and without points so you can compare the upfront cost to the break-even timeline.
Title, title insurance, and settlement
Title companies handle the research, insurance, and the closing meeting.
- Title search, exam, and closing fee: often $300 to $900 or more.
- Title insurance: there are two policies. The lender’s policy protects the lender and is typically paid by the buyer. The owner’s policy protects you. In many Georgia transactions, it is common for the seller to pay the owner’s policy, but this is a local custom and negotiable.
- Document prep and recording coordination: sometimes included in settlement fees.
Tip: You can often shop for your title and settlement provider. Ask for a detailed fee quote early.
Prepaid items and escrow startup
These are not fees. They are prepayments so future bills get paid on time.
- Homeowner’s insurance: many lenders collect the first year’s premium at closing.
- Prepaid interest: covers interest from your closing date to month-end.
- Initial escrow deposits: lenders that require an escrow account will collect 1 to 2 months of property tax and insurance payments at closing as a cushion.
Tip: Your closing date affects prepaid interest. A closing later in the month usually means fewer days of prepaid interest.
Taxes, recording, and prorations
- Property tax proration: DeKalb County property taxes are prorated at closing. You reimburse the seller for their share of the current year, based on the closing date and billing cycle.
- Recording fees: DeKalb County charges to record your deed and mortgage. These are usually modest and depend on the number of pages.
- Local charges: While some states charge a separate transfer tax, Georgia’s costs are driven more by recording and local custom. Confirm any county-specific charges with your title company.
Tip: Ask the title company to estimate your recording fees and show how taxes will be prorated for your address.
Other costs to budget for
Not every cost shows up on the closing statement, but you will pay them during the process.
- Inspections: general home inspection, termite, radon, or specialty inspections typically total $300 to $1,000 or more, depending on scope.
- Survey: if required by your lender or desired for peace of mind, usually $300 to $800 or more.
- HOA items: condos and some townhomes may have estoppel or transfer fees that commonly range $100 to $400 or more. Some communities also charge move-in or capital contribution fees.
These are part of your out-of-pocket spend to purchase, even if paid before closing.
Decatur and DeKalb specifics to know
Every market has local customs. Here are common patterns to confirm in your contract:
- Owner’s title insurance: It is often customary in Georgia for the seller to pay for the owner’s title insurance policy, while the buyer pays for the lender’s policy and standard closing fees. Treat this as negotiable, not guaranteed.
- Property tax proration: DeKalb County taxes are prorated at closing. Ask for the most recent tax bill for your property or a similar one so your lender can estimate escrow deposits accurately.
- Recording and e-recording: DeKalb County records deeds and mortgages via the Clerk or Registrar. Your title company will manage this and include the fee on your closing statement.
- HOA prevalence: Many single-family homes in Decatur do not have an HOA. Condos and some townhomes often do, which means transfer and estoppel fees may apply. Confirm early if your property is in an HOA.
Sample cost scenarios for Decatur buyers
Use these examples to map your cash-to-close plan. Your Loan Estimate and Closing Disclosure will show your exact numbers.
- Scenario A — $250,000 purchase, conventional loan, no points, typical title fees, limited prepaids, no HOA: estimated buyer closing costs about $5,000 to $8,000.
- Scenario B — $400,000 purchase, conventional loan, buyer pays 1 point, escrow cushion required, seller pays owner’s title policy, buyer pays lender’s policy and standard title fees, one month of insurance prepaid: estimated buyer closing costs about $10,000 to $16,000.
- Scenario C — $700,000 purchase, points and a broker fee, condo with HOA estoppel and transfer fees, higher title costs: estimated buyer closing costs $20,000 or more.
How to lower or control your closing costs
You can influence several line items with early planning.
- Compare lenders: Ask for a detailed Loan Estimate that lists origination, points, appraisal, credit report, and all third-party fees. Request at least two rate-and-fee options.
- Evaluate points: Run the break-even. If you expect to move or refinance before you break even, paying points may not be worth it.
- Shop title and settlement: Title premiums can be similar, but settlement and related fees can vary. Ask for a written quote before you lock in.
- Time your closing: Closing later in the month can reduce prepaid interest. Do not force the date, but consider the effect when scheduling.
- Negotiate concessions: In some deals, sellers may contribute toward buyer closing costs. Confirm what the loan program allows and what is written in your contract.
- Know what is fixed: County recording charges and government fees are not negotiable. Focus your energy on lender and settlement items that can be shopped.
Your Decatur closing-cost checklist
Use this quick list to stay organized and confident from pre-approval to closing.
- Request a Loan Estimate within three business days of application. Verify origination, appraisal, credit report, points, title charges, recording fees, prepaids, and escrow deposits.
- Ask if an escrow account is required. If yes, confirm how many months of taxes and insurance will be collected at closing.
- Get rate-and-fee choices. Compare scenarios with and without points and ask for the monthly payment difference and break-even timeline.
- Confirm title and settlement. Ask who is providing title insurance and settlement services, whether the seller will pay the owner’s policy, and the expected premiums and closing fee.
- Review taxes. Ask how DeKalb County property taxes will be prorated for your closing date and request the most recent tax bill to estimate escrow.
- Check HOA details. If applicable, confirm estoppel and transfer fees, the monthly HOA dues, and whether any special assessments are pending.
- Clarify contract credits. Verify any seller-paid closing costs and make sure they appear on your final statement.
- Request your Closing Disclosure at least three business days before closing so you have time to review every line.
- Ask for a draft closing statement that mirrors the final format so you can practice reading it early.
What to expect in the final week
As you approach closing, the numbers should settle.
- You will receive your Closing Disclosure at least three business days before signing. Compare it to your Loan Estimate and ask about any changes.
- Your lender will give you the final cash-to-close figure and how to deliver funds. Follow wire instructions carefully and verify them by phone with the title company to avoid fraud.
- Your title company will confirm what to bring to the closing table and will walk you through recording and keys.
- After closing, set up your homeowner’s insurance renewals, sign up for tax bill notifications with DeKalb County if available, and store your documents in a safe place.
A local partner for a smoother close
Closing costs are manageable when you understand each line and know which ones you can influence. With clear estimates, smart timing, and the right negotiation strategy, you can reduce surprises and keep more cash for improvements after move-in.
If you want a local advocate to help you compare estimates, negotiate credits, and coordinate details with your lender and title team, reach out to Crochet Realty Group. Our Decatur and Intown Atlanta expertise, white-glove process, and responsive guidance make buying feel straightforward and stress aware.
FAQs
What are typical buyer closing costs for a $400,000 home in Decatur?
- A practical range is about 2% to 5% of the purchase price, or roughly $8,000 to $20,000, depending on loan type, points, prepaids, title fees, and HOA charges.
Who usually pays for the owner’s title insurance policy in Georgia?
- It is often customary for the seller to pay the owner’s title insurance policy, while the buyer pays the lender’s policy and standard closing fees, but this is negotiable and should be confirmed in your contract.
Are inspections part of closing costs in Decatur?
- Inspections are buyer-paid but are typically paid before closing, so they may not appear on your settlement statement; budget $300 to $1,000 or more depending on the number and type of inspections.
How are DeKalb County property taxes handled at closing?
- Taxes are prorated between buyer and seller based on the closing date and tax calendar, and your title company will reflect this proration on the closing statement.
Can I reduce my closing costs without hurting my loan?
- Yes. Compare lenders, shop title and settlement fees, evaluate whether paying points makes sense, time your closing date thoughtfully, and negotiate seller credits if allowed by your loan program.
What documents show my final closing costs and when will I get them?
- You will receive a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing, which shows your final costs and cash to close.
