Are you trying to figure out how much cash you’ll need to close on a home in Johns Creek? Closing costs can feel like a mystery, especially when you are focused on your down payment. With a clear estimate and a simple plan, you can avoid surprises and move forward with confidence. In this guide, you’ll learn what buyers in Johns Creek typically pay, how those fees break down, and smart ways to use seller credits within lender rules. Let’s dive in.
What closing costs include
Closing costs are the one-time expenses you pay at settlement to finalize your purchase and loan. They cover lender fees, title and recording charges, and prepaid items like taxes and insurance. If you are getting a mortgage, your lender must give you a Loan Estimate early in the process and a Closing Disclosure at least 3 business days before closing. Use these documents to verify every line item and compare numbers.
Typical buyer costs in Johns Creek
Closing costs vary by loan type, price point, and negotiations. In Johns Creek and across Georgia, buyers commonly budget about 2% to 5% of the purchase price for closing costs.
Loan-related fees
- Origination and underwriting: Lender processing and underwriting fees. Many lenders charge a flat fee or a percentage. Plan for roughly $500 to $2,000 or about 0.25% to 1% of the loan amount.
- Discount points (optional): You can pay points to reduce your interest rate. One point equals 1% of the loan amount. Consider points only if the long-term savings make sense for your timeline.
- Appraisal: Lender-required valuation. Typical Johns Creek range is about $400 to $800 or more, depending on property size and complexity.
- Credit report, flood cert, admin fees: Smaller items usually between $25 and $200 each.
- Mortgage insurance: If you put less than 20% down on a conventional loan, you will likely have private mortgage insurance. FHA loans include mortgage insurance premiums. These can be monthly and sometimes partially paid upfront. Your lender will detail the structure.
Title, settlement, and recording
- Title search and closing fee: Title companies and licensed settlement agents handle closings in metro Atlanta. Combined title and settlement fees often run about $300 to $1,500 depending on price and policy choices.
- Owner’s title insurance: In many Georgia transactions, the seller pays for the owner’s policy. Practices can vary, so confirm in your contract.
- Lender’s title insurance: Usually a buyer cost when you finance. The premium depends on your loan amount.
- Recording fees: Fulton County charges modest recording fees for the deed and mortgage. These are fixed per document with possible per-page add-ons.
Prepaid items and escrow deposits
These are not fees for services. They are upfront funding for items you would pay anyway.
- Prepaid interest: Interest from your closing date until your first mortgage payment.
- Homeowners insurance: Most lenders require the first year’s premium paid at closing.
- Property taxes: Georgia taxes are paid in arrears and prorated at closing. You may reimburse the seller for your share of the year or prepare for an upcoming tax bill. Lenders commonly collect an escrow cushion, often about two months of taxes and insurance.
- HOA dues and fees: If the home is in an association, plan for prorated dues and possible transfer or setup fees.
Other possible buyer costs
- Survey or boundary inspection if the lender requires it or if you want added peace of mind.
- HOA estoppel or transfer fees to confirm dues status and obtain documents.
- Pest or wood-destroying organism inspection if required by the lender or your contract.
- Attorney review if you choose to hire counsel. Georgia does not require an attorney for buyers, but some buyers prefer it.
How much to budget
A quick way to plan is to use a simple percentage of the purchase price. Then refine with your Loan Estimate.
- At $400,000: 2% is $8,000; 3% is $12,000; 5% is $20,000.
- At $600,000: 2% is $12,000; 3% is $18,000; 5% is $30,000.
These examples show how costs scale with price. Your lender’s estimate will give you exact dollar figures.
Taxes, prorations, and HOAs in Fulton County
Property taxes in Fulton County are prorated at closing. Because taxes are paid in arrears, you will typically reimburse the seller for your share of the current year if the seller has already paid a portion. If taxes are due soon after closing, your lender may collect escrow funds to ensure timely payment. Johns Creek includes many communities with homeowners associations. Expect prorated dues plus transfer or estoppel fees that vary by association.
Seller credits and lender limits
Seller contributions can help reduce your cash to close. There are limits based on your loan program and down payment.
What you can ask for
- A seller credit toward closing costs, prepaid items, and escrow deposits.
- Seller-paid repairs or specific fees, such as covering the owner’s title policy if not customary.
Typical program caps
- Conventional loans: With less than 10% down, seller concessions are commonly capped around 3% of the sale price. With 10% to 25% down, the cap is commonly 6%. With more than 25% down, it is commonly 9%.
- FHA loans: Seller concessions are typically allowed up to 6% of the sale price for allowable costs.
- VA loans: Sellers can pay many buyer costs. A commonly cited ceiling is about 4% for certain concessions. Confirm specifics with your VA lender.
Always verify with your lender which costs are allowed and how credits affect your final approval. Credits must be disclosed and will appear on your Closing Disclosure.
Practical negotiation tips
- Ask for a specific dollar amount of closing cost credit in your offer.
- Keep appraisal in mind. Credits do not change the contract price. The home still needs to appraise at value.
- Decide what helps you most. A credit reduces your upfront cash. A lower price reduces your monthly payment and total interest.
- Align with market conditions in Johns Creek. In competitive markets, large credits may be harder to secure.
Timeline and required disclosures
- Early in the process, your lender will provide a Loan Estimate that outlines interest rate, payment, and projected closing costs. Use this to shop and compare.
- At least 3 business days before closing, you will receive your Closing Disclosure. Compare it to your Loan Estimate and ask your lender or the title company to explain any changes.
Simple prep checklist
- Ask your lender for a closing cost estimate as soon as you apply.
- Compare at least two Loan Estimates to evaluate rates, fees, and any points.
- Confirm who pays the owner’s title policy in your Johns Creek contract.
- Request a title fee quote from the local title company.
- Add prepaid items to your plan, including insurance and escrow deposits.
- Verify HOA dues, transfer, and estoppel fees with the association.
- Review your Closing Disclosure 3 business days before closing and compare it to your Loan Estimate.
- If you request seller credits, document them clearly in the contract and confirm your lender will allow them.
Your next step
If you want a clear, personalized cash-to-close estimate for a specific Johns Creek home, we can help you line up accurate quotes from your lender and the title company, then structure a winning offer that uses credits wisely. Reach out to the local team that specializes in north-metro Atlanta purchases. Connect with AlpharettaZen Expert Home Advisors to get started.
FAQs
What do Johns Creek buyers typically pay at closing?
- Most buyers budget about 2% to 5% of the purchase price, depending on loan type, price, and whether the seller provides credits.
Who usually pays for owner’s title insurance in Georgia?
- It is common in many Georgia transactions for the seller to pay the owner’s policy, while the buyer pays the lender’s policy. Always confirm in your contract.
How are Fulton County property taxes handled at closing?
- Taxes are paid in arrears and prorated. You may reimburse the seller for your share or fund an escrow if a bill is due soon after closing.
Can seller credits cover prepaid taxes and insurance?
- Yes, credits can usually cover allowable closing costs and prepaid items within your loan program’s concession limits.
When will I see my final cash-to-close number?
- Your lender must provide a Closing Disclosure at least 3 business days before closing. Compare it to your Loan Estimate and ask questions about changes.
