Educational information; not financial advice or a pre-approval.
What are closing costs?
Closing costs are the charges, on top of your down payment, that it takes to finalize the purchase and the loan: lender charges, third-party services, government fees and prepaid items. That's how the Consumer Financial Protection Bureau (CFPB) groups them.
There's no single percentage that applies to every buyer. The total shifts with the price of the home, the loan type, the county, your closing date and whatever gets negotiated in the offer. So instead of guessing with a rule of thumb, work from the official documents your lender is required to give you.
When will I know what I'll pay?
You'll find out at two points: your lender must give you a Loan Estimate within three business days of receiving your application, and a Closing Disclosure at least three business days before closing.
- Loan Estimate: shows the loan, the estimated payment and estimated closing costs. Use it to compare offers from different lenders.
- Closing Disclosure: shows the final numbers. Compare it line by line with your Loan Estimate.
As the CFPB's closing checklist points out, by law only certain costs can change. If something jumped or doesn't make sense, ask before you sign.
Which costs does the buyer usually pay?
Buyers typically cover the costs tied to their loan and to protecting their purchase: lender charges, the appraisal, title insurance, legal fees, recording fees and prepaid amounts for taxes and insurance.
- Lender charges: what the lender charges to originate the loan. Points are optional: an upfront payment to lower your rate.
- Appraisal: a third-party service the loan requires to confirm the home's value.
- Title insurance: another third-party service required for the mortgage. An owner's policy shows up separately, among other purchase costs.
- Closing attorney: fees for the legal services of the closing.
- Government fees: for example, recording the deed and the mortgage.
- Prepaids and escrow: interest from closing day through the end of the month, plus initial deposits into your escrow account for homeowners insurance and property taxes.
- Other costs: such as the home inspection, which is often paid before closing.
Taxes depend on where you buy. Mecklenburg County's rate stayed at 49.27 cents per $100 of value for fiscal year 2027, and Cabarrus lists a rate of .576 per $100 for July 2026 through June 2027, before any city rate. If you're looking in Charlotte and Mecklenburg or Concord and Cabarrus, that number affects your escrow deposits.
What does the seller pay in North Carolina?
The seller pays the deed excise tax (often called revenue stamps), which is $1 for every $500 of the price, plus the payoff of their mortgage and whatever agent compensation they agreed to. On a $300,000 sale, the excise tax comes to $600.
State law (G.S. 105-228.30) says the transferor, meaning the seller, pays this tax to the register of deeds before the deed is recorded. The seller's existing mortgage is also paid off out of the sale proceeds. Agent compensation is negotiable. If you're on the selling side, our sellers guide walks through how to estimate what you'll walk away with.
What happens to the due diligence fee and earnest money?
They're two separate payments made at the start of the contract, not on closing day, and how they're applied at the end depends on the terms of the contract. The due diligence fee goes directly to the seller; earnest money is held in a trust or escrow account.
- Due diligence fee: a negotiated amount, if any, that the buyer pays the seller for the right to do their inspections and research. According to the North Carolina Real Estate Commission (NCREC), it's generally non-refundable; the exceptions include things like a material breach by the seller.
- Earnest money: must be deposited in a trust or escrow account. If the buyer terminates before the due diligence period ends, they generally get it back.
At closing, both amounts are handled according to the terms of your contract. Ask your attorney to show you where each one appears on your Closing Disclosure. For how these are negotiated in the first place, read how an offer works in North Carolina.
Can the seller help with my closing costs?
Yes, it's negotiable. In your offer, you can ask the seller to contribute a credit toward closing costs, and the seller decides whether to accept, adjust or decline.
Seller concessions are part of the negotiation, just like price. Each loan type may limit how much a seller can contribute, so check with your lender before writing the offer. The appraisal matters too: the home has to support the agreed price. With more inventory than a year ago (Canopy reported 3.7 months of supply in the region in August 2026), asking for closing help can be a reasonable conversation, though every house and every seller is different.
Is there help with closing costs?
Yes, programs exist that can help: up to $15,000 toward the down payment plus closing-cost assistance programs, subject to qualification. Requirements and available funds can change, so always confirm with your lender.
For example, the North Carolina Housing Finance Agency (NCHFA) offers the NC Home Advantage Mortgage™, with down payment assistance of up to 3% of the loan amount, subject to qualification; terms can change. Check our down payment assistance page or take the Do I qualify for down payment help? quiz for a first read.
What does the closing attorney do in North Carolina?
In North Carolina, a licensed attorney provides the legal services for a residential closing. Under a North Carolina State Bar opinion, a nonlawyer who isn't directly supervised by one can't prepare deeds, give title opinions or advise the parties on their legal rights.
On closing day, you review and sign the documents and bring the funds shown on your Closing Disclosure. One important habit: before you wire any money, confirm the instructions by calling the attorney's office at a number you already know, not one that shows up in an email.
If you'd like a second set of eyes on an estimate before you make an offer, book a free 20-minute call and we'll go through it together, line by line.
Frequently asked questions
Can I roll closing costs into the loan?
It depends on the loan type and the lender. Some programs allow certain charges to be financed and others don't, and financing more also raises your monthly payment. The way to find out is to request your Loan Estimate and ask which options apply to you. Seller concessions and closing-cost help are other routes, subject to negotiation and qualification.
How much money do I need to bring on closing day?
The exact figure is on your Closing Disclosure, which you should receive at least three business days before closing. That amount already accounts for your down payment, your closing costs and any credits that were agreed to. The attorney's office will tell you how to send the funds; confirm those instructions by phone, at a known number, before sending anything.
Does the seller always pay the deed tax?
Under North Carolina law, the deed excise tax is paid by the transferor, which is the seller, at $1 for every $500 of the price. On a $300,000 sale, that's $600. Other costs can be negotiated in the offer, such as a seller credit toward the buyer's closing costs.
What is title insurance and why is it on my estimate?
It's a policy tied to the property's legal history. The CFPB lists it among the third-party services required to get a mortgage, and an owner's policy appears separately among other purchase costs. Ask your closing attorney what each policy covers and what it costs well before you get to the closing table.
Can I shop around for closing services?
In some cases, yes. The CFPB explains that some third-party services can be shopped for separately and that you choose whether to pay points, while government fees generally don't vary from lender to lender. Getting Loan Estimates from two or three lenders helps you see real differences before you commit to one.
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