Are you wondering how much cash you’ll really need to close on a home in Cayce or Lexington? You’re not alone. Between lender fees, prepaids, and local recording costs, it can feel confusing. In this clear guide, you’ll learn what buyer closing costs cover, how much to budget, local South Carolina specifics, and simple ways to lower your cash to close. Let’s dive in.
What closing costs cover
Closing costs are the expenses you pay at settlement in addition to your down payment. These costs cover your loan, title and settlement services, and prepaid items like taxes and insurance. Your lender will give you a Loan Estimate within three business days after you apply and a Closing Disclosure at least three business days before closing, so you can review final numbers with time to spare.
How much to budget in Cayce and Lexington
A common rule of thumb is to plan for about 2%–5% of the purchase price in buyer closing costs. The exact amount depends on your loan type, price point, closing date, and local fees. For example, on a $350,000 home, a 2%–5% range equals about $7,000–$17,500, not counting your down payment.
Typical buyer costs: line-by-line
Lender and loan fees
- Loan origination or discount points, underwriting, and processing fees. Some lenders may offer credits that reduce upfront costs in exchange for a slightly higher interest rate.
- Appraisal fee, usually paid upfront. Amounts vary by property type and size.
- Credit report, flood certification, and tax service fees.
- If applicable, rate lock or extension fees. Loan programs like VA, FHA, or USDA may have specific funding or insurance fees.
Prepaids and escrow reserves
- Prepaid interest from your closing date through month-end. Closing late in the month reduces this amount.
- Homeowners insurance, often the first year paid at or before closing.
- Property tax and insurance reserves deposited into escrow, based on local tax cycles.
- HOA dues or transfer fees if applicable.
Title, attorney, and settlement services
- Title search and title insurance premiums. An owner’s policy is optional but recommended for protection.
- Lender’s title insurance policy if you have a mortgage.
- Settlement or closing fee for the title company or closing attorney.
- County recording fees for the deed and mortgage, plus any required documents and courier fees.
Inspections and property condition
- General home inspection, with optional add-ons like radon, sewer scope, HVAC, chimney, or mold based on the home.
- Wood-destroying insect inspection is common in South Carolina. If treatment or repairs are needed, costs are handled per your contract and loan requirements.
Other possible costs
- Survey if required by your lender or desired for peace of mind.
- HOA document fees for community disclosures.
- Wire or courier fees for delivering certified funds. Always confirm wiring instructions by phone with your settlement company to prevent fraud.
South Carolina and local specifics
Who handles closing here
In South Carolina, closings are commonly handled by title insurance companies and settlement agents, and attorneys may also conduct closings. In the Columbia area, confirm early whether a title company or attorney will close your transaction.
County recording fees and forms
Cayce properties may sit in Lexington County or nearby counties. Recording fees and document requirements are set by each county’s register of deeds. These fees are usually modest and depend on the number and type of documents recorded. Your settlement agent will provide exact figures for your property and loan.
Property tax proration
Property taxes are typically prorated at closing. Sellers generally pay the portion of the year up to the closing date, and you pay from closing through year-end. Because tax calendars and millage rates vary by county and municipality, ask your lender and settlement agent to confirm the proration method for your property.
Termite and pest considerations
The Southeast sees more wood-destroying insect activity, so lenders or buyers often request a termite inspection. Whether treatment is required depends on your loan type and the inspection findings. Budget for inspection costs and potential treatments or repairs if needed.
Ways to lower your cash to close
Shop your loan and compare estimates
- Request Loan Estimates from multiple lenders the week you are shopping. Compare the total cost, not just the interest rate.
- Ask lenders to itemize fees and explain any processing or underwriting line items.
Use seller concessions and repair credits
- You can negotiate for the seller to pay some of your closing costs or to provide credits for repairs. Market conditions and loan program rules will guide how much is possible.
Consider lender credits
- If you prefer lower upfront costs, ask about lender credits in exchange for a slightly higher rate. This reduces cash due at closing, while increasing your monthly payment.
Explore assistance programs
- South Carolina Housing offers down payment and closing cost assistance for eligible buyers, often with income and purchase price limits. A HUD-approved counselor or SC Housing representative can confirm eligibility and current programs.
Time your closing and prepaids
- Closing later in the month reduces prepaid interest. Your total cash to close also depends on insurance timing and tax escrow deposits. Ask your lender to show a few timing scenarios.
Your pre-closing checklist
- Get preapproved, then request a Loan Estimate within three business days of application.
- Schedule a home inspection early, plus any specialty inspections if needed.
- Shop homeowners insurance and send the binder to your lender.
- Review the title commitment and address any exceptions.
- Review your Closing Disclosure at least three business days before closing.
- Arrange certified funds or wires per verified instructions from your settlement company.
- Confirm any seller concessions and credits in writing.
- Bring a government-issued ID and any required documents to closing.
What to expect: contract to keys
- Offer accepted
- Inspection period, typically 7–14 days
- Appraisal ordered by your lender
- Underwriting and any conditions cleared
- Closing Disclosure delivered at least three business days before closing
- Settlement day and keys
Work with a local team you can trust
Closing costs do not have to be a surprise. With the right plan, you can budget confidently and use smart strategies to reduce your cash to close. Our team knows Cayce, Lexington, and the Columbia area well, and we’re here to guide you through every step, from your first estimate to a smooth closing day.
If you’re ready to run your numbers or want local referrals for lenders and closing attorneys, reach out to the Smith Real Estate Group. We’ll help you move forward with clarity and confidence.
FAQs
What are buyer closing costs in South Carolina?
- Closing costs are fees you pay at settlement in addition to your down payment, including lender charges, title and settlement services, inspections, and prepaids like taxes and insurance.
How much should I budget for closing costs in Cayce or Lexington?
- Plan for about 2%–5% of the purchase price, then confirm your personalized estimate with a Loan Estimate from your lender.
Who typically pays which fees in the Columbia area?
- Buyers usually pay loan-related fees, inspections, and prepaids, while sellers may cover negotiated concessions and their own transfer or title-related items as agreed in the contract.
When will I see my final closing numbers?
- Your lender must provide a Closing Disclosure at least three business days before closing so you can review total costs and cash to close.
Can the seller pay some or all of my closing costs?
- Yes, seller concessions are common but depend on market conditions, your loan program’s limits, and what you negotiate in the contract.
Are termite inspections required in South Carolina?
- They are common and sometimes required by lenders depending on the property and findings; budget for inspection and possible treatment or repairs if needed.
