Are you trying to figure out how much cash you’ll need to close on a home in Charleston? You’re not alone. Closing costs can feel confusing when you’re also juggling down payment, inspections, and insurance. This guide breaks down what you’ll likely pay, local customs in South Carolina, and smart ways to estimate and reduce costs. Let’s dive in.
What closing costs include
Closing costs are one-time fees and prepaids required to complete your purchase and start your mortgage. They do not include your down payment. You’ll see lender fees, title and recording charges, prepaid interest and insurance, potential escrow deposits, and third-party inspection costs. Some items are negotiable, and some depend on your loan program.
Typical total in Charleston
Most buyers in the Charleston area can plan for about 2% to 5% of the purchase price in closing costs, excluding the down payment. Your number depends on your lender’s pricing, title premiums tied to price, insurance needs, and whether you receive seller concessions. Coastal properties may lean higher because of insurance and escrows.
Lender fees to expect
Origination and points. Your lender may charge an origination or processing fee. You can also choose to pay discount points to lower your rate.
Rate Reduction: This usually lowers your rate by a quarter-point (0.25%), but can range from 0.125% to 0.25%.
Underwriting and admin. These are typical processing charges and often total a few hundred to a little over a thousand dollars.
Appraisal and credit report. Appraisals in the area often run about $450 to $900 depending on property type and complexity. Credit reports usually cost $25 to $60.
Program-specific charges. FHA, VA, USDA, and conventional loans have different upfront costs and concession limits. Your lender will outline these on your Loan Estimate.
Title and settlement charges
Title insurance. Lenders require a lender’s title policy to protect the mortgage. In much of South Carolina, the owner’s title policy is often paid by the seller, but this is not guaranteed. Title insurance premiums are set by state regulation and vary with the purchase price.
Settlement and search fees. Expect a settlement or closing fee from the title company or closing attorney, plus title search and exam fees. Together, these often total several hundred dollars to around $1,200.
Recording Fees in South Carolina (Buyer Costs). In South Carolina, recording fees are paid to the County Register of Deeds to officially record documents such as the deed and mortgage.
Typical Recording Fees. While fees vary slightly by county, buyers can generally expect:
- Deed recording: ~$25–$35
- Mortgage recording: ~$25–$40
- Total recording fees: Approximately $50–$75
These fees are relatively modest compared to other closing costs and are usually itemized clearly on the settlement statement.
Prepaids and escrow basics
Prepaid interest. You’ll prepay daily interest from your closing date to the start of your first full mortgage month.
Escrow deposits. Lenders commonly collect 2 to 3 months of property taxes and homeowners insurance, and flood insurance when required. These deposits can add up, especially on higher-priced or coastal homes.
First-year insurance. You typically pay the first year of homeowners insurance at closing. Coastal homes may require higher premiums or specific wind/hurricane coverage. If the home lies in a Special Flood Hazard Area, your lender will require flood insurance.
Inspections and third-party fees
Home inspection. Budget roughly $300 to $700 depending on size and age. Additional inspections (pest/WDO, septic, well, radon, mold) range from about $75 to $500 each.
Survey. Sometimes required or recommended, often $300 to $1,000 or more based on lot and location.
HOA and condo documents. Expect $100 to $500 or more for document and transfer fees, especially in larger communities and condo associations.
Government and county items
Recording and transfer. You’ll pay to record the deed and mortgage with Charleston County. Check with your settlement agent for the current schedule. South Carolina’s transfer and recording practices differ from other states, so rely on your title professional for exact figures.
Property tax proration. Taxes are paid in arrears in South Carolina and are prorated at closing.
How to estimate costs early
Use these steps to get accurate numbers well before closing:
- Ask your lender for a Loan Estimate within 3 business days of applying and compare at least 2 to 3 offers. Focus on Total Closing Costs, lender credits, and Estimated Cash to Close.
- Request a preliminary title fee estimate from a Charleston title company or closing attorney once you go under contract.
- Get homeowners and flood insurance quotes for the specific property and include the first-year premium and escrow seed.
- Plan for 2 to 3 months of escrow deposits for taxes and insurance at closing.
- Verify wire instructions through a trusted channel. Expect to bring certified funds or wire the amount due at closing.
Ways to reduce out-of-pocket
- Compare lenders on both rate and fees. Lender credits can offset closing costs in exchange for a slightly higher rate.
- Negotiate seller concessions within loan program limits to cover some closing costs or prepaids.
- Consider whether to pay discount points. No-point options often reduce upfront cash but may raise your monthly payment.
- Compare title and settlement fees. Local providers can differ.
- Decide which inspections are essential for the property. Skipping inspections increases risk.
Plan your cash to close
You will receive a Loan Estimate early in the process and a Closing Disclosure with final numbers at least 3 business days before closing. Review both carefully. Confirm payoff amounts, credits, proration, and wire details with your closing team.
Quick buyer checklist
- Ask your lender for a Loan Estimate and compare 2 to 3 offers.
- Request a title and closing estimate from a local Charleston provider.
- Get homeowners and flood insurance quotes for the property.
- Ask which closing costs sellers typically cover and confirm in writing.
- Budget 2% to 5% of the purchase price as a planning range.
Local guidance and next steps
Buying in the Lowcountry involves a few coastal-specific factors, from flood insurance to HOA transfer fees. A local team can help you price each line item early so there are no surprises at the closing table. If you are purchasing a second home or plan to convert to a rental, our integrated management and home-watch services can streamline ownership after closing.
If you’re preparing to buy in Charleston, let’s build a clear, line-by-line budget and negotiation plan together. Reach out to Lowcountry Charmed LLC to get started.