Wondering how much cash you need to bring to the closing table in Franklin? You are not alone. Closing costs can be confusing, and the numbers vary by loan, property, and county fees. In this guide, you will learn what closing costs cover, typical ranges for Johnson County, example totals at common Franklin price points, how seller credits work, and the steps to get exact numbers for your purchase. Let’s dive in.
What closing costs cover
Closing costs are the non‑purchase‑price expenses needed to finalize your home purchase and set up your mortgage. They include lender fees, third‑party services, prepaid items, and escrow reserves.
- Lender fees: origination, processing, underwriting, and any discount points.
- Third‑party services: appraisal, title search and settlement, title insurance, recording.
- Prepaids and escrows: first year of homeowners insurance, per diem interest, and initial deposits for tax and insurance escrow accounts.
As a rule of thumb in Indiana, plan for about 2% to 5% of the purchase price in closing costs, not including your down payment. If your lender sets up escrow accounts for taxes and insurance, your total cash to close can land closer to 3% to 6% of the price.
Typical line items in Franklin
Each loan and property is different, but these are common buyer costs and ranges for Franklin and Johnson County.
Lender fees
- Often 0.5% to 1.5% of the loan amount, or a flat $500 to $3,000.
- Discount points, if you choose to buy down your rate, cost 1% of the loan per point.
Appraisal
- Usually $400 to $800 for a standard single‑family home in Indiana.
- Complex or unique properties can cost more.
Credit report, flood cert, survey
- Credit report: $20 to $60.
- Flood certification: $10 to $50.
- Survey, if required: $300 to $1,000 or more. Many loans do not require a new survey.
Title search, settlement, title insurance
- Title search and settlement fee: $200 to $800.
- Lender’s title policy: typically 0.2% to 0.9% of the loan amount based on insurer schedules.
- Owner’s title policy is optional but common. Who pays can vary by local custom. Confirm with your title company and in your purchase agreement.
Recording and transfer fees
- Recording fees vary by document and county, often tens to low hundreds of dollars.
- Transfer taxes vary by state and county. Check Johnson County offices and your title company for exact amounts.
Prepaids and escrow reserves
- Homeowners insurance: first year premium often $600 to $2,000 or more.
- Per diem interest: from your closing date to your first payment date.
- Property taxes: you may reimburse the seller for any taxes they prepaid and also fund 1 to 3 months of tax and insurance escrows, depending on your lender’s requirements.
- Mortgage insurance: FHA has an upfront premium that is often financed; conventional PMI may require the first month at closing.
HOA or special inspections
- HOA transfer or document fees: commonly $100 to $500.
- Well, septic, or other inspections if required can add to costs.
How much to budget
Every situation is unique, but a simple plan works well:
- Start with 2% to 5% of the price for closing costs.
- If your lender will escrow taxes and insurance, expect your cash to close to be 3% to 6%.
- Add your down payment on top of these numbers.
Your lender will show estimates on a Loan Estimate and then confirm final figures on a Closing Disclosure before you sign.
Franklin examples by price point
These examples are for illustration only. Exact totals depend on loan type, lender, property taxes, insurance, and escrows.
Example A: Starter home at $225,000
- Low estimate at 2%: about $4,500.
- Higher estimate at 4%: about $9,000.
- Typical mix: appraisal about $500, title and settlement around $1,200, lender fees about $1,500, and $1,500 to $5,000 for insurance, taxes, and escrow deposits.
Example B: Typical Franklin home at $350,000
- Low estimate at 2%: about $7,000.
- Higher estimate at 4%: about $14,000.
- Typical mix: appraisal $500 to $650, title and recording $1,500 to $3,000, lender fees $2,000 to $4,000, and $2,000 to $6,000 for insurance and escrow funding.
Example C: Move‑up home at $500,000
- Low estimate at 2%: about $10,000.
- Higher estimate at 4%: about $20,000.
- As price increases, percentage‑based items like title insurance and lender policy rise in dollar terms. Escrow deposits for taxes and insurance also tend to be higher.
Seller credits and program limits
Seller credits, also called concessions, can cover all or part of your closing costs. They must be written into the purchase agreement and are limited by your loan program.
- FHA: seller contributions up to 6% of the purchase price.
- VA: seller concessions generally limited to about 4% of the price. Some specific items have special rules.
- Conventional: limits often depend on your down payment.
- Less than 10% down: typically 3% cap.
- 10% to 25% down: often 6% cap.
- 25% or more down: often 9% cap.
Seller credits cannot cover your down payment and may not cover certain reserve deposits, depending on the lender and program. Market conditions in Franklin will guide whether seller credits are likely. Get a pre‑approval and confirm your allowable credit strategy with your lender before you write an offer.
Local verification in Johnson County
To dial in exact numbers for Franklin, use these checkpoints:
- Johnson County Recorder: confirm recording fees and which documents will be recorded.
- Johnson County Treasurer or Auditor: review property tax schedules and any proration details.
- Local title company: request a title insurance quote and a sample fee sheet or preliminary Closing Disclosure. Ask who customarily pays for the owner’s policy in Johnson County.
Your timeline: LE and CD
Two documents help you track costs and finalize your cash to close:
- Loan Estimate: your lender must provide it within three business days after you apply. It outlines line‑item estimates for closing costs and cash to close.
- Closing Disclosure: your lender must provide it at least three business days before closing. It shows the final numbers.
Review both carefully and ask your lender and title company to explain any changes.
Steps to get your exact cash to close
Follow these practical steps to avoid surprises:
- Get pre‑approved and request a Loan Estimate within three business days of your application.
- Ask a local title company for a title quote and sample Closing Disclosure with recording fees for Johnson County.
- Confirm with your lender how many months of tax and insurance escrow are required and how per diem interest will be calculated for your closing date.
- If the home is in an HOA or condo, request the resale package and estoppel fees early.
- Decide on a seller credit strategy based on your loan program limits and submit offers accordingly.
- Bring your Loan Estimate and any seller credit terms to your buyer consult so your agent can model the cash to close and negotiate credits that fit your plan.
Ready to see your numbers for a Franklin purchase and build a winning offer strategy? Connect with the team at Duke Collective for a simple, local, step‑by‑step plan from pre‑approval to clear to close.
FAQs
Can I roll closing costs into my mortgage?
- Some lenders allow you to finance costs through a higher loan amount or offer a lender credit that raises your interest rate. Ask your lender to show the long‑term cost difference.
Do sellers in Franklin usually pay closing costs?
- It depends on market conditions and your loan program. Many loans allow limited seller concessions, but whether you get them is a matter of negotiation.
Who pays for the owner’s title insurance in Indiana?
- Local custom varies by county and even by deal. Confirm who will pay in your purchase agreement and verify with your title company in Johnson County.
Where can I find Johnson County recording fees and any transfer taxes?
- Contact the Johnson County Recorder and Treasurer or Auditor, or ask your title company to include exact figures on your preliminary estimate.
When will I receive the Loan Estimate and Closing Disclosure?
- The Loan Estimate is due within three business days after you apply. The Closing Disclosure must be provided at least three business days before closing.
