Closing Costs In Columbia: What Buyers Should Expect

Buying a home in Columbia comes with more than the purchase price. If you are a first-time buyer or relocating to the Midlands, the list of fees at the end can feel confusing. The good news is you can predict most of it. In this guide, you will learn typical buyer closing costs in Columbia, who usually pays what, how to estimate your total before you offer, and smart ways to reduce out-of-pocket cash. Let’s dive in.

What closing costs are in Columbia

Closing costs are the one-time fees you pay to get your mortgage and transfer the property. In most South Carolina purchases, buyers should plan for about 2% to 5% of the purchase price, separate from your down payment. Where you land in that range depends on your loan type, lender fees, and prepaid items like taxes and insurance.

Here are quick planning examples:

• $200,000 home: 2% is about $4,000; 4% is about $8,000.
• $300,000 home: 2% is about $6,000; 4% is about $12,000.
• $400,000 home: 2% is about $8,000; 4% is about $16,000.

A simple rule of thumb is to budget 3% as a conservative working estimate, then get exact numbers from your lender and closing attorney.

What drives your total

Several factors push your closing costs up or down:

• Purchase price and loan amount. Many fees scale with the loan size.
• Loan program. Conventional, FHA, VA, and USDA loans have different fee structures and rules for seller-paid costs.
• Title insurance choices. Whether you or the seller pay for the owner’s policy can shift totals.
• Prepaid items. Insurance, property tax escrows, and per-day mortgage interest can be sizable.
• Local fees. Recording costs in Richland County and any HOA transfer fees add to your bottom line.

Who usually pays what in the Midlands

Local custom matters in Columbia and Richland County. While everything is negotiable in your contract, here is what is commonly seen:

• Seller typically pays real estate broker commissions and often pays for the owner’s title insurance policy. Sellers may also agree to repairs after inspections.
• Buyer typically pays lender-related fees (application, underwriting, and any points), appraisal, inspections, survey if required, prepaid insurance and escrow deposits, the lender’s title policy, and recording fees tied to financing documents. Buyers also pay for optional items they request, like a home warranty.

Seller concessions are common. Your lender will set limits by program. For example, FHA often allows up to 6% in seller credits toward your closing costs. VA and USDA programs have their own rules about what sellers can pay. Confirm your exact limits with your lender before you negotiate.

Buyer closing costs: line-by-line

Below is a plain-English breakdown of fees you will likely see on your Closing Disclosure in the Columbia area. Ranges vary by lender and property.

Loan-related fees

• Application/processing: sometimes $0 to $500.
• Origination fee or points: 0% to 1% of the loan amount if charged. Discount points are optional fees you pay to lower your rate.
• Underwriting/processing: $300 to $900.
• Credit report: $25 to $50.
• Tax service and flood certification: $10 to $50.

Third-party services

• Appraisal: typically $400 to $800 in Columbia, depending on property and loan.
• Home inspection: $300 to $600 for a general inspection. Extra testing for pests, radon, septic, or wells is additional. Many inspections are paid before closing.
• Survey if required: $300 to $700.
• Recording fees: Richland County charges flat and per-page fees to record deeds and mortgages. Amounts are modest but vary by document.
• Courier/notary: often $25 to $100.

Title insurance and settlement

• Lender’s title insurance: usually required. Premium is tied to your loan amount and is a one-time cost.
• Owner’s title insurance: optional but strongly recommended. In the Midlands, it is often paid by the seller as a local custom, though this is negotiable.
• Settlement or attorney fee: commonly $300 to $800 in South Carolina, where closings are handled by title companies or closing attorneys.

Prepaid items and escrow reserves

• Prepaid interest: daily interest from your closing date to the end of the month.
• Homeowners insurance: typically your first year’s premium due at closing. Many Columbia buyers see $600 to $1,800+ depending on the home.
• Property taxes and escrow: your lender usually collects 2 to 6 months of taxes and insurance to fund your escrow account. This can be several hundred to a few thousand dollars depending on tax rates and insurance costs.

Government, HOA, and optional items

• Recording fees: county charges to record your deed and mortgage documents.
• Transfer or documentary stamps: check current South Carolina and Richland County requirements with your closing attorney.
• HOA transfer/estoppel: often $100 to $400 if the home is in an HOA.
• Home warranty: optional, typically $300 to $700 if you or the seller buy one.
• Mortgage insurance: upfront amounts may apply for some loans, such as FHA upfront mortgage insurance.

How to estimate before you offer

You can build a clear budget before you write an offer by following these steps:

1. Request a Loan Estimate. After you apply, federal rules require your lender to deliver a Loan Estimate within three business days. This is your main tool for previewing costs.
2. Ask for a title or settlement quote. Contact a local closing attorney or title company for an itemized estimate based on your price point and loan type.
3. Use 3% as a planning cushion. Adjust up if your loan has points or larger escrow deposits.
4. Check HOA and local fees. If the property has an HOA, ask about transfer fees. Your closing attorney can confirm recording fees and any municipal assessments.
5. Compare lenders and terms. Review total closing costs and APR across quotes, keeping loan terms and points consistent.

Ways to lower cash due at closing

You can reduce or offset closing costs several ways, subject to loan rules:

• Seller concessions. Ask the seller to cover some or all of your closing costs within program limits. FHA commonly allows up to 6%. Confirm the exact cap for your loan.
• Seller-paid owner’s title policy. This is often customary in the Midlands and can save you a meaningful amount.
• Lender credits. Accept a slightly higher interest rate in exchange for a lender credit that offsets costs.
• Shop services. Compare lender fees and get quotes from closing attorneys for title and settlement charges.
• Timing your closing. Closing later in the month can reduce prepaid interest.

Timeline from pre-approval to keys

• Pre-approval and application. You receive a Loan Estimate within three business days of application.
• Appraisal and underwriting. These steps usually take one to three weeks depending on the property and your loan.
• Closing Disclosure. Your lender must give you the final Closing Disclosure at least three business days before closing. Review it carefully and compare it to your Loan Estimate.
• Closing day. You will sign documents and fund any remaining balance with a wire or certified funds. The closing attorney or title company will record documents and disburse funds.

Richland County and Columbia specifics to confirm

• Recording fees. The Richland County Register of Deeds posts current fees and document requirements. Your closing attorney will confirm the exact amounts for your file.
• Property tax proration. The Richland County Treasurer schedules property tax billing. Your Closing Disclosure will show prorations and any escrow deposits.
• Utilities and assessments. Ask your agent and closing attorney to check for municipal utility balances or special assessments that need to be settled or prorated.
• Settlement agent. In South Carolina, closings are commonly handled by closing attorneys or title companies. Confirm who is preparing your Closing Disclosure and holding funds.

Common pitfalls to avoid

• Treat your Loan Estimate as a guide. It can change. Your Closing Disclosure is the final number, delivered at least three business days before closing.
• Watch for contract changes. If the contract shifts costs at the last minute, your total due at closing may change.
• Protect against wire fraud. Always verify wiring instructions by calling the closing attorney or title company using a known phone number. Do not rely only on email.
• Ask for itemized fees. Clear line items help you compare quotes and spot errors.

Quick buyer checklist

• Budget 2% to 5% of the purchase price for closing costs. Use 3% for planning.
• Request a Loan Estimate from your lender and a title/settlement quote from a local closing attorney.
• Save for earnest money, down payment, closing costs, and escrow reserves.
• Confirm how you will bring funds to closing. Use a wire or certified funds. Always verify instructions by phone.
• Review your Closing Disclosure as soon as you receive it and ask questions right away.

When you understand the moving parts, closing costs feel less mysterious. With the right estimates, smart negotiation, and a clear timeline, you can step into your new Columbia home with confidence and no surprises. If you want local guidance and a clean plan from pre-approval to closing day, connect with Hannah Norman.

FAQs

How much are buyer closing costs on a $300,000 Columbia home?

• A common planning range is 2% to 5% of the price, which is about $6,000 to $15,000, depending on your loan, fees, and prepaid escrows.

In Columbia, who typically pays for the owner’s title insurance?

• It is often paid by the seller as a local custom in the Midlands, but it is negotiable in your contract.

What are seller concessions and how much can I ask for?

• Seller concessions are credits that reduce your closing costs; limits vary by loan program, and FHA commonly allows up to 6% subject to your lender’s rules.

What is the difference between the Loan Estimate and the Closing Disclosure?

• The Loan Estimate is an early estimate provided within three business days of application, while the Closing Disclosure is the final itemized statement delivered at least three business days before closing.

How do escrow reserves work in Richland County?

• Your lender usually collects 2 to 6 months of property taxes and insurance at closing to start your escrow account, based on local tax schedules and your insurance premium.

How can I reduce cash due at closing without delaying the purchase?

• You can request seller concessions, consider lender credits, shop service fees, and time your closing date to lower prepaid interest within loan-program limits.