Buying or selling in Hickory and unsure what you will owe at the closing table? You are not alone. Closing costs can feel confusing because they include many one-time fees and prorations that are separate from your down payment or mortgage. In this guide, you will learn who typically pays what in North Carolina, what to expect in Catawba County, and how to budget with confidence. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prorations due at settlement. They are different from your down payment and your loan principal. Costs include lender and title fees, taxes tied to recording your loan, prepaid interest and escrows, inspections, and commissions if you are a seller. Many items are negotiable, and local custom influences how some fees are split.
Who pays what in Hickory
Local custom guides who pays which cost in North Carolina. Your purchase contract and closing attorney will confirm the final allocation.
Buyer-paid items
- Loan fees such as application, origination, underwriting, and credit report.
- Appraisal, and any discount points you choose to buy.
- Lender’s title insurance policy premium.
- North Carolina mortgage intangible tax, typically $1 per $500 of new loan amount which is about 0.2%. Confirm the current rate with the state before closing.
- Recording fees for the deed of trust, plus any survey your lender requires.
- Home inspections, radon, pest, well or septic inspections if applicable.
- Prepaid items such as first year homeowners insurance, prepaid interest, and escrow deposits for taxes and insurance.
Seller-paid items
- Real estate broker commission. The total is commonly 5% to 6% of the sale price and is negotiable.
- Owner’s title insurance policy premium. In North Carolina it is customary for the seller to pay this premium, although it is negotiable and should match your contract.
- Payoff of the seller’s mortgage and any liens to deliver clear title.
- Prorated property taxes through the date of closing.
- Any agreed repairs or seller concessions.
Split or negotiable items
- Settlement or closing fee charged by the attorney or title agent.
- Recording fees for the deed, wire and courier fees, and HOA document fees.
- Allocation of the owner’s title policy can be negotiated if not paid by the seller.
NC-specific fees to know
Mortgage intangible tax
When a new mortgage is recorded in North Carolina, an intangible tax is typically due. It is commonly calculated at $1 per $500 of the new loan amount, which equals about 0.2%. This is usually paid by the buyer at closing. Confirm the current rate with the North Carolina Department of Revenue before you close.
Recording fees and title insurance
Recording fees for the deed and deed of trust, and title premiums, vary by county and by the length of the documents. In Catawba County, your closing attorney or title company will quote exact amounts. North Carolina regulates title insurance rates, so premiums follow published schedules tied to price and loan size.
Property taxes and prorations
Property taxes are prorated between buyer and seller based on the local tax calendar. The seller typically pays taxes up to the day of closing. Check Catawba County’s current tax rate and billing schedule with the Tax Assessor or Collector to understand your exact proration.
No statewide transfer tax
North Carolina does not have a statewide documentary real estate transfer tax like some states. Buyers and sellers typically encounter recording fees and the intangible tax on new mortgages instead. Verify whether any local transfer or municipal fees apply to your specific Hickory property.
How much to budget
Buyers in North Carolina often budget 2% to 5% of the purchase price for closing costs. Sellers commonly budget for broker commission, which is often the largest cost, plus smaller settlement items.
The examples below are illustrative only. Exact title premiums, recording fees, and prorations vary and should be confirmed with your closing attorney, lender, and the Catawba County offices.
Example: $200,000 sale
- Seller: Commission at 6% is $12,000. Owner’s title policy could be a few hundred to a little over a thousand dollars. With prorated taxes and routine fees, sellers often see $12,500 to $14,500 or more in closing costs before mortgage payoff.
- Buyer: At about 2.5% in closing costs, plan for around $5,000. Intangible tax on a $160,000 loan is about $320. Inspections, appraisal, and escrows can add $1,800 to $4,000 depending on timing and scope.
Example: $350,000 sale
- Seller: Commission at 6% is $21,000. Owner’s title policy could range from the high hundreds into the low thousands. Total seller closing costs often land near $22,000 to $24,500 or more before payoff.
- Buyer: At about 2.5%, closing costs are around $8,750. Intangible tax on a $280,000 loan is about $560. Inspections, appraisal, and escrows could add $1,500 to $3,000 or more.
Example: $500,000 sale
- Seller: Commission at 5.5% is $27,500, if negotiated. Owner’s title policy may be in the low to mid thousands. Many sellers see $28,700 to $31,000 or more before payoff.
- Buyer: At about 2.5%, closing costs are around $12,500. Intangible tax on a $400,000 loan is about $800. Inspections, appraisal, and escrows could add $2,000 to $5,000.
Timing and disclosures
Loan Estimate and Closing Disclosure
Your lender must provide a Loan Estimate within three business days of your application. That document outlines your estimated closing costs. You must receive your Closing Disclosure at least three business days before you sign your loan. Review both carefully and ask your lender and closing attorney to explain any changes.
Role of the closing attorney
Closings in North Carolina are typically handled by a settlement attorney or title company that conducts a title search, issues title policies, prepares closing documents, and records the deed and deed of trust. Your attorney will coordinate payoffs, prorations, and final figures so you can review a settlement statement before closing.
Local checks before you close
- Confirm Catawba County recording fees and which party pays each fee in your contract.
- Ask the closing attorney for exact title insurance premiums for the owner and lender policies.
- Verify Catawba County’s tax rate and billing cycle to understand tax prorations.
- Check for HOA or POA estoppel or transfer fees if the property is in a community association.
- Confirm whether the City of Hickory requires final utility readings or administrative fees for account transfers.
- Verify the current North Carolina mortgage intangible tax rate and how it applies to your loan.
Ways to reduce out-of-pocket costs
- Negotiate seller concessions. A seller credit can cover part of your closing costs. Loan program rules may set limits, so coordinate with your lender.
- Request lender credits. You may accept a slightly higher interest rate to reduce upfront costs.
- Compare lenders and closing attorneys. Fees can vary, and a second quote can uncover savings.
- Time your closing date. Closing late in the month may lower prepaid interest owed at settlement.
- Review your escrow setup. Ask how many months of taxes and insurance will be collected so you can plan ahead.
Work with a local guide
Every Hickory transaction is a little different. Your exact costs depend on price, loan type, timing, and what you and the other party negotiate. If you want a clear estimate tailored to your property and loan, connect with a local pro who knows how Catawba County handles recording, taxes, and title.
Have questions about your closing costs or how to structure a clean deal in Hickory? Reach out to Mark Causby for a straightforward plan and a local, concierge approach that keeps you informed from offer to keys.
FAQs
Who pays owner’s title insurance in North Carolina?
- It is customary for the seller to pay the owner’s title insurance premium in North Carolina, but this is negotiable and should match your purchase contract.
Is there a real estate transfer tax in North Carolina for Hickory sales?
- North Carolina does not have a statewide documentary real estate transfer tax, but you should verify whether any local fees apply to your specific property.
What is the North Carolina mortgage intangible tax for Hickory buyers?
- The intangible tax is typically due when a new mortgage is recorded and is commonly calculated at $1 per $500 of loan amount, about 0.2 percent, usually paid by the buyer.
How much should Hickory buyers budget for closing costs?
- Many buyers budget 2 to 5 percent of the purchase price for closing costs, excluding the down payment, with exact figures depending on loan program and timing.
Can Hickory sellers pay a buyer’s closing costs?
- Yes, seller concessions are common and negotiable, though loan program limits may apply, so coordinate with your lender and agent.
When will I see my final closing costs before a Hickory closing?
- Your lender must deliver a Closing Disclosure at least three business days before closing, and your closing attorney should provide a final settlement statement to review.
Who handles settlement and title work in Hickory, North Carolina?
- A settlement attorney or title company typically conducts the title search, issues title policies, and manages recording and disbursement for North Carolina closings.
