What makes up cash to close?
The Consumer Financial Protection Bureau says closing costs typically run about 2%–5% of the home purchase price, separate from the down payment. Actual charges depend on the loan, property, location, and contract.
- Down payment: Some conventional loans permit 3% down; FHA can allow 3.5%; eligible VA or USDA borrowers may have no down-payment requirement. Eligibility and other costs still apply.
- Closing costs: These can include lender, appraisal, title/closing, recording, and other transaction charges.
- Prepaids and escrow: Homeowners insurance, prepaid interest, and initial property-tax or insurance reserves may be collected before your first regular payment.
- Offsets: Earnest money already paid, seller concessions, lender credits, and approved assistance can reduce what remains due.
Georgia-specific costs to ask about
Georgia's intangible recording tax is generally $1.50 per $500 (or fraction) of a recorded loan amount, subject to a $25,000 cap. On a $360,000 loan, that formula yields $1,080. The real-estate transfer tax is generally the seller's legal obligation unless the contract allocates it differently. Property taxes may also be prorated at closing. Your closing professional should confirm the applicable amounts and who pays them under your contract.
A simple example
Suppose you buy a $400,000 home with a $40,000 down payment, $12,000 in closing costs, and $3,500 in prepaids. If you already paid $5,000 earnest money and receive a $4,000 seller credit, the estimated balance is $46,500. This illustration is not a quote; credits may be limited by loan rules and your actual Closing Disclosure may differ.
| Example item | Amount |
|---|---|
| Down payment + closing costs + prepaids | $55,500 |
| Less earnest money + seller credit | −$9,000 |
| Estimated cash to close | $46,500 |
How to avoid a last-minute surprise
Review the Loan Estimate after applying and ask the lender to explain every line that could change. For most mortgages, you must receive the Closing Disclosure at least three business days before closing. Compare it with the estimate and ask about differences immediately. Keep funds accessible and document large transfers or deposits; avoid opening new credit or moving money unexpectedly during underwriting.
Confirm wiring instructions by calling the closing office at a phone number you independently verified. The FBI's 2025 Internet Crime Report documents substantial real-estate and business-email-compromise losses; never trust an emailed change to payment instructions without a direct call.
Also read our guides to keeping down-payment money ready, interest rates for Georgia buyers, and closing-date extensions. Have questions about a North Metro Atlanta purchase? Contact The Carl Hawthorne Team.
General information, not legal, lending, tax, or financial advice. Your lender and Georgia closing professionals should explain your transaction-specific numbers and documents.
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