Closing costs can feel like the mystery line item in an Alpharetta home sale. You plan for the price, the down payment, even the movers, and then the closing statement shows dozens of entries you did not expect. You are not alone. When you understand what each fee is, who typically pays it, and what you can negotiate in Georgia, you will approach the closing table with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees, prepaid items, and adjustments you and the other party owe at settlement. They usually fall into these buckets:
- Lender fees (origination, underwriting, processing, appraisal, rate lock, optional points)
- Title and settlement charges (title search, closing/settlement fee, title insurance policies, courier and document prep)
- Prepaids and escrows (homeowner’s insurance, initial escrow reserves for taxes and insurance, prepaid mortgage interest)
- Third‑party inspections and reports (home inspection, termite inspection, survey)
- Prorations and adjustments (property taxes, HOA dues, utilities based on the closing date)
- Commissions and seller net items (on the seller side)
At closing in Georgia, you will review a Closing Disclosure and a settlement statement prepared by the title or closing agent. These documents lay out every line item so you can see how the final number is calculated.
Buyer closing costs in Alpharetta
Lender fees and points
Most buyers in Alpharetta pay lender charges for underwriting and processing. You may also see a credit report fee, flood certification, and tax service fees. If you choose to lower your interest rate with discount points, that cost is a buyer expense unless negotiated as a seller concession.
Appraisal
Lenders typically require an appraisal. You often pay this at application or it is added to your costs at closing.
Title and settlement
Two title insurance policies exist: an owner’s policy and a lender’s policy. In many metro Atlanta deals, sellers commonly pay for the owner’s policy while buyers pay for the lender’s policy. That practice is customary, not guaranteed, and can be negotiated in the contract. Other title charges include the title search, settlement fee, document prep, and any courier or wire fees.
Recording and county fees
Fulton County charges recording fees for documents such as the deed and your mortgage. The party who benefits from a recorded document often pays its fee, which means buyers usually pay to record the mortgage while sellers pay to release any existing mortgage. Your title company will itemize these costs.
Prepaids and escrow reserves
Expect to pay your first year of homeowner’s insurance (or at least the initial premium) and to fund initial escrow reserves so the lender can pay property taxes and insurance on schedule. You will also prepay daily mortgage interest from the closing date to the end of that month. The exact amounts depend on your loan and your closing date.
Inspections and surveys
Home inspection, termite/wood‑destroying organism inspection, and, in some cases, a survey are common buyer expenses unless you negotiate otherwise. Older properties or homes with septic or well systems may require additional inspections.
HOA items
If the property is in an Alpharetta HOA, there may be an estoppel letter and transfer or capital contribution fees. Who pays these can vary; it is often set in the purchase contract. Many local transactions have the seller provide or pay for the estoppel letter, but confirm in writing.
Earnest money credit
Your earnest money deposit is credited to you at closing and reduces the cash you need to bring. Ask your closing agent to confirm that the credit is shown correctly on your settlement statement.
Seller closing costs in Alpharetta
Broker commission
In metro Atlanta, sellers commonly pay the broker commission, which is then shared between the listing and buyer brokers. Commission rates are always negotiated directly in your listing agreement.
Title and owner’s policy
Sellers in many Georgia closings pay the premium for the owner’s title insurance policy. This is a local custom and negotiable in your contract.
Mortgage payoff
If you have a mortgage, the payoff includes the principal balance, daily interest through the closing date, and any fees for reconveyance or release.
Prorations and adjustments
Property taxes, HOA dues, and utilities are typically prorated through the closing date. You will be credited or debited based on what has been paid for the current period.
Settlement and deed-related fees
The title or closing company may charge a seller-side settlement fee. There may also be deed preparation or administrative recording costs depending on how your closing agent structures fees.
HOA and repair items
If your community requires an HOA estoppel letter, confirm whether you or the buyer will pay the fee. Any repairs you agreed to after inspections will also appear on your closing statement.
What is negotiable in Georgia
Nearly every allocation of closing costs can be negotiated in the Georgia purchase contract. Many buyers ask sellers to cover a portion of their costs using seller concessions. Loan programs set limits on how much a seller can contribute:
- FHA loans commonly cap seller concessions at 6 percent of the purchase price. Confirm current guidance with your lender.
- Conventional loans tie concession limits to your down payment. Lower down payments often allow smaller concessions, while higher down payments may allow more, sometimes up to 6 or 9 percent. Confirm the exact tier for your loan with your lender.
- VA loans allow sellers to pay many closing costs and certain fees, but specifics depend on the lender’s interpretation and what is negotiated. Check with a VA-experienced lender.
Bottom line: You can shift many costs by agreement, but program rules and appraisal outcomes still apply. Get your lender’s written limits before you negotiate.
Fulton County and local practices
- Closing agent: Georgia allows both title companies and attorneys to handle closings. Many metro Atlanta transactions use title companies. Choose your closing agent early so they can coordinate the Closing Disclosure and recording.
- Recording: The Fulton County Clerk/Recorder handles deed and mortgage recording and charges per‑document fees. Amounts change over time, so ask your title company to confirm current fees.
- Property tax proration: Taxes are billed through the Fulton County Tax Commission. Taxes are prorated by your closing date. Confirm whether the seller has already paid for the year and how homestead exemptions affect timing.
- Transfer taxes: Georgia does not have a broad statewide real estate transfer tax in the form some states do. Expect recording and administrative costs, and verify any local charges with your closing agent.
First‑time buyer pitfalls to avoid
- Underbudgeting for prepaids and escrow: Initial insurance, escrow reserves, and prepaid interest add up. Ask your lender to estimate these early.
- Missing HOA costs: Capital contributions or transfer fees can surprise you. Confirm all HOA charges in writing before you finalize your offer.
- Title insurance assumptions: Know who pays for the owner’s policy in your deal and why it matters for your protection.
- Special inspections: Termite, septic, well, or sewer scopes are common for certain properties. Plan for these costs.
- Wire fraud risk: Only use wiring instructions you confirm by phone using a known number for your title company. Never rely solely on email.
Checklists for a smooth closing
Buyer checklist
- Review your Closing Disclosure at least 3 business days before closing.
- Call the title company to verify the exact funds to close and wiring or cashier’s check instructions.
- Confirm your initial escrow deposit and first homeowner’s insurance premium.
- Budget for appraisal, inspections, HOA estoppel or transfer fees, and county recording costs.
- Bring a government‑issued photo ID and your insurance binder to closing.
Seller checklist
- Request written payoff statements for all mortgages or liens.
- Confirm commission, any seller concessions, and your seller settlement fee with the closing agent.
- Provide keys, remotes, and any HOA documents as required. Confirm who orders and pays the HOA estoppel letter.
- Review your draft settlement statement and ask when the deed will be recorded and when you will receive net proceeds.
How to verify your exact numbers
- Your lender: Ask for an up‑to‑date Loan Estimate early and your Closing Disclosure as soon as it is available. Confirm concession limits for your loan program.
- Your title/closing company: Request a draft settlement statement with itemized title fees, owner’s and lender’s title insurance premiums, and Fulton County recording charges.
- Fulton County offices: For property tax timing, exemptions, and billing, contact the Tax Commission or Board of Assessors. For recording fees and document requirements, ask the Clerk/Recorder.
Ready to run the numbers together?
If you want a clear, line‑by‑line estimate for your Alpharetta purchase or sale, let’s talk about your price point, loan type, and HOA details. I will coordinate with your lender and closing agent so you know exactly what to bring to the table and what you can negotiate. Schedule a consultation with Joshua Vigliotti to get started.
FAQs
What are typical buyer closing costs in Alpharetta?
- Buyers usually pay lender fees, the appraisal, the lender’s title policy, recording for the mortgage, prepaids and escrow reserves, and inspections, with some items negotiable in the contract.
Who pays for title insurance in Alpharetta, GA?
- It is common for sellers to pay the owner’s title policy and buyers to pay the lender’s policy, but this is a local custom and fully negotiable in the Georgia purchase contract.
Can a seller cover my closing costs on a conventional loan?
- Yes, but the amount is limited by your down payment tier on conventional loans; ask your lender for your exact concession limit before negotiating.
How are Fulton County property taxes handled at closing?
- Taxes are prorated by the closing date; you and the other party receive credits or debits based on what has already been paid and the portion of the year each side owns the home.
Are there special HOA fees when buying in Alpharetta?
- Many Alpharetta communities have HOA estoppel and transfer or capital contribution fees; who pays is set by the contract, so confirm expectations before you write your offer.
