Staring at a great Atlanta listing and wondering how much cash you need beyond the down payment? You are not alone. Closing costs can feel like a moving target, especially with Georgia’s unique taxes and local fees. In this guide, you will learn what buyer closing costs include in Atlanta, who typically pays which items in Georgia, how to estimate your total before you write an offer, and a simple example using a $400,000 purchase. Let’s dive in.
What closing costs cover
Closing costs are one-time fees and prepaid items you pay to complete your purchase and, if applicable, fund your mortgage. They are separate from your down payment and future monthly payments. In most markets, buyers should plan for about 2 to 5 percent of the purchase price, with Georgia’s state and county charges helping determine where you land in that range.
Common categories include lender fees, appraisal and credit report, title search and insurance, settlement and recording charges, Georgia state taxes tied to the mortgage, and prepaid items like homeowner’s insurance and initial escrow deposits. Inspections and surveys are also part of your total cash outlay, although you usually pay them before closing.
What buyers typically pay in Georgia
Lender and appraisal costs
- Application, processing, underwriting, and possible discount points.
- Appraisal ordered by the lender and a credit report fee.
- These are usually buyer-paid, though you can request seller credits subject to loan program limits.
Title and settlement services
- Title search and exam to confirm clear ownership.
- Lender’s title insurance policy is typically a buyer expense.
- Owner’s title insurance is commonly paid by the seller in Georgia, but it is negotiable and should be confirmed in your contract.
Government and recording charges
- Fulton County recording fees for the deed and mortgage documents.
- Georgia intangible recording tax, equal to 0.5 percent of the original mortgage amount, paid at recording. This is a meaningful line item for many Atlanta buyers.
Prepaid items and escrows
- First year of homeowner’s insurance, prepaid interest from your funding date to your first payment date, and initial deposits for your escrow account if your lender collects taxes and insurance.
- Prorations for property taxes and any HOA dues based on the closing date.
Inspections and surveys
- General home inspection, termite or pest inspection, and any specialist checks such as sewer or structural, as needed.
- A survey may be requested by your lender or desired for your own peace of mind.
Who pays what in Georgia
Georgia has customary practices, yet everything is negotiable in the purchase contract. Buyers typically cover lender fees, appraisal, credit report, title search, lender’s title policy, settlement fees tied to the loan, recording fees, the Georgia intangible tax, prepaid interest, homeowner’s insurance, and initial escrow deposits. Sellers in Georgia commonly pay for the owner’s title policy, but this varies by deal and should be confirmed with your closing attorney or title company. Deed recording and HOA transfer items may be split or negotiated.
Estimating your Atlanta closing costs
Use this simple process before you submit an offer:
- Get pre-approved and request a Loan Estimate.
- Your lender’s Loan Estimate outlines lender charges, third-party title estimates, recording fees, and prepaids. Use it as your starting point.
- Ask a local closing attorney or title company for a title estimate.
- Request the title search fee, title insurance premiums for lender and owner policies, estimated settlement fee, Georgia intangible tax, and Fulton County recording fees.
- Calculate the Georgia intangible tax.
- Formula: 0.005 times your loan amount. Example: a $360,000 mortgage creates an estimated $1,800 intangible tax.
- Estimate recording fees and county charges.
- Fulton County fees are per instrument and sometimes per page. Your title professional can quote the current schedule.
- Add prepaids and escrows.
- Include your first-year insurance premium, per diem interest from closing until your first payment date, and initial escrow deposits for taxes and insurance as required by your lender.
- Include inspections and other third-party costs.
- General inspection, pest inspection, and any additional due diligence you choose.
- Factor in seller concessions you plan to request.
- Your lender can confirm the maximum credit allowed for your loan type and down payment.
- Use a mortgage and closing-cost calculator.
- Enter your price, down payment, and estimated line items to confirm your total cash to close. You can also use Paula’s mortgage calculator and buyer resources when you are ready to model scenarios.
Atlanta example: $400,000 purchase
Here is a simple illustration for a City of Atlanta, Fulton County purchase using a 10 percent down payment. Numbers are examples only and will vary based on lender, title company, and the closing date.
- Price: $400,000
- Down payment: $40,000
- Loan amount: $360,000
Estimated buyer-paid items:
- Lender fees: $2,000
- Appraisal: $600
- Credit report: $50
- Title search and exam: $300
- Lender’s title policy: $1,200
- Settlement or closing fee: $350
- Recording fees: $200
- Georgia intangible tax, 0.5 percent of $360,000: $1,800
- First-year homeowner’s insurance: $1,200
- Prepaid interest: $400
- Initial escrow deposit: $2,000
- Inspections: $700
Estimated total closing costs: $10,800, which is about 2.7 percent of the $400,000 price. Note how the intangible tax and initial escrow deposits contribute to the total. If you secure a $5,000 seller credit, your estimated cash for closing costs could drop to roughly $5,800, while your down payment remains the same. Since the intangible tax is based on the loan amount, changing your down payment will change that tax.
Property taxes, proration, and timing
Fulton County and City of Atlanta tax calendars can affect your escrow setup and the proration between you and the seller at closing. If you close near a tax due date, you might see larger initial escrow deposits. The exact amount depends on your lender’s requirements and the closing date. Your title professional and lender can provide a precise estimate for your file.
Assistance programs to explore
Atlanta and Georgia offer down payment and closing-cost assistance through city, county, and state programs. Options may include resources from the City of Atlanta, Fulton County, and the Georgia Department of Community Affairs, along with HUD-approved counseling agencies. Eligibility varies by program, property, and borrower profile, so confirm details early in your planning.
Common mistakes to avoid
- Waiting to price out closing costs until the week of closing. Start with a lender Loan Estimate and a title estimate before you make an offer.
- Forgetting Georgia’s intangible tax. It is 0.5 percent of the original loan amount and usually paid by the buyer at recording.
- Ignoring escrow deposits. Your initial funding for taxes and insurance can be a meaningful part of your cash to close.
- Overlooking seller credits and negotiable items. Many line items are negotiable, subject to program limits and your contract.
Pre-offer checklist
Use this quick list to confirm your numbers:
- Loan Estimate from your lender
- Preliminary title or closing estimate
- Estimated Georgia intangible tax based on your loan amount
- Current Fulton County recording fee quote from the title company
- Insurance premium quote for your new home
- HOA dues or transfer info, if applicable
- Plan for seller concessions and how they will be applied
Ready to run the numbers?
If you want a clear, no-stress estimate tailored to your price point, loan type, and timeline, let’s talk. Connect with Paula Taylor to schedule a personalized consultation and get a custom closing-cost breakdown for your Atlanta purchase.
FAQs
How much cash do Atlanta buyers usually need at closing?
- Many buyers plan for 2 to 5 percent of the purchase price for closing costs, plus the down payment. In Georgia, include the 0.5 percent intangible tax on your loan amount when you estimate.
Who typically pays title insurance in Georgia purchases?
- Buyers usually pay the lender’s title policy, and sellers commonly pay the owner’s policy in Georgia. This is a local custom and fully negotiable in your purchase contract.
What is Georgia’s intangible tax and when is it due?
- It is a state tax on new mortgages equal to 0.5 percent of the original loan amount, generally collected at closing when the mortgage is recorded.
Can the seller cover some of my closing costs in Atlanta?
- Yes, seller concessions are common and can offset buyer costs. The amount allowed depends on your loan program and down payment, so confirm limits with your lender.
Why does my Closing Disclosure differ from my Loan Estimate?
- Lenders follow federal rules that govern changes between the Loan Estimate and Closing Disclosure. If amounts increase materially, ask your lender to explain the change and your options.
