Closing Costs Are a Mystery! Here’s the Breakdown in 30 Seconds

If you are buying a home in Savannah, Pooler, Richmond Hill, or one of our nearby communities, you already know about saving for a down payment. But what often surprises buyers are the extra expenses due at closing. These costs can feel mysterious, especially for first-time buyers, and not knowing about them in advance can lead to stress.

The good news is that closing costs are not meant to be a hidden trap. They are simply part of the process, and with the right planning they are completely manageable. By understanding what they are, how much to budget, and which ones matter most, you can walk into your closing day feeling prepared and confident.

What Are Closing Costs?

Closing costs are the fees and expenses that come with finalizing your home purchase. They are separate from your down payment and usually paid at the time of closing. These costs cover the services required to transfer ownership of the home, secure financing, and make sure the transaction is legally protected.

On average, closing costs range from three to five percent of the loan amount. So, for a home in Savannah priced at $340,000, buyers can expect closing costs of around $10,000 to $17,000.

The Top Three Closing Costs You Need to Know

While there are many individual line items that can appear on your closing disclosure, three major categories make up the bulk of the costs.

1. Title Insurance

Title insurance protects you and your lender in case there are any disputes about the ownership of the property. For example, if a previous owner had an unpaid lien, title insurance ensures you are not financially responsible for it.

There are two types:

  • Lender’s title insurance, which is required.

  • Owner’s title insurance, which is optional but highly recommended because it protects your ownership rights.

In Savannah, title insurance often costs between a few hundred and a couple of thousand dollars depending on the purchase price.

2. Lender Fees

Lenders charge fees for processing and underwriting your loan. These can include:

  • Origination fees

  • Application fees

  • Credit report charges

  • Document preparation

Working with a trusted local lender helps ensure transparency. Heather Murphy Group collaborates with multiple lending partners in Savannah, who provide clear breakdowns of fees so there are no surprises.

3. Appraisal Fee

An appraisal is required to confirm the property’s value matches the loan amount. This protects both you and the lender by ensuring you are not overpaying for the home. In Savannah, appraisal fees typically range from $500 to $700 depending on the property.

Other Common Closing Costs

Beyond the big three, you may also see the following items on your closing statement.

  • Home inspection fee (if paid at closing rather than upfront)

  • Attorney fees for reviewing documents (Georgia is an attorney state, so legal representation is part of the process)

  • Recording fees for filing ownership with the county

  • Prepaid taxes and insurance for setting up your escrow account

  • Survey fees if required for the property boundaries

Every transaction is different, which is why reviewing your Loan Estimate and Closing Disclosure with your Realtor and lender is so important.

Family carrying boxes into a Richmond Hill home after closing

Local Market Example

Let’s break this down with a Savannah example.

  • Home price: $340,000

  • Loan amount (5% down): $323,000

  • Estimated closing costs (3.5% of loan): $11,305

Possible breakdown:

  • Title insurance: $1,200

  • Lender fees: $2,500

  • Appraisal: $600

  • Attorney fees: $1,000

  • Recording and government fees: $500

  • Prepaid taxes and insurance: $4,000

  • Miscellaneous: $1,505

This is just an estimate, but it shows how the costs add up and why planning ahead is key.

Can Sellers Contribute to Closing Costs?

Yes. In some cases, sellers may agree to contribute toward your closing costs as part of the negotiation. This is called a seller concession. It is not guaranteed, especially in a competitive market, but in situations where sellers are motivated, it can reduce your upfront expenses significantly.

In Richmond Hill, for example, we have seen sellers contribute to buyer closing costs when their home had been on the market longer than expected. On the other hand, in high-demand neighborhoods like Westbrook at Savannah Quarters, sellers are less likely to offer concessions because multiple buyers are competing.

How to Prepare for Closing Costs

The best way to handle closing costs is to plan for them from the beginning. Here are some tips:

  1. Review your Loan Estimate early. Your lender must provide this within three business days of application.

  2. Ask questions. Do not hesitate to request clarity about each fee.

  3. Budget beyond the down payment. Set aside three to five percent for closing costs.

  4. Explore assistance programs. Georgia and Chatham County sometimes offer first-time buyer grants that can help with costs.

  5. Lean on your Realtor. Heather Murphy Group guides buyers through reviewing documents and negotiating concessions where possible.

Why Transparency Matters

For many buyers, the scariest part of closing costs is the unknown. That is why we believe in complete transparency. At Heather Murphy Group, we walk our clients through every fee and ensure they understand exactly what to expect on closing day. Our network of trusted lenders provides clear, upfront estimates so there are no last-minute surprises.

When you combine expert guidance with planning, closing costs stop being a mystery and become just another step toward owning your new home.

Conclusion

Closing costs may sound mysterious, but they are not meant to trip you up. By budgeting three to five percent of your loan amount and understanding the key categories—title insurance, lender fees, and appraisal—you can walk into your closing day with confidence.

In Savannah, Pooler, Richmond Hill, and surrounding communities, the Heather Murphy Group is here to help buyers navigate every step, from budgeting for closing costs to moving into your dream home.

If you are ready to begin your journey, call our team at 912-335-3956 or visit heathermurphygroup.com. With our guidance and trusted lending partners, you will be fully prepared when it comes time to close.