Wondering how much cash you’ll need on closing day in Hilliard? You’re not alone. Closing costs can feel confusing when you’re trying to plan a budget and start touring homes. This guide breaks down what closing costs include, who typically pays what in Franklin County, and how to estimate your total with confidence before you write an offer. Let’s dive in.
What closing costs include
Closing costs cover several buckets of fees and prepaids you pay in addition to your down payment:
- Lender fees: origination, points, application, processing, and underwriting.
- Third-party services: appraisal, credit report, flood certification, and lender’s title insurance.
- Title and settlement: title search, title insurance, settlement or escrow fee, and county recording.
- Prepaids and escrow deposits: property taxes, homeowners insurance, and initial escrow funding.
- Inspections and survey: general home inspection, pest or radon checks, and surveys when required.
- Prorations: a fair split of property taxes, HOA dues, and utilities based on the closing date.
For definitions and consumer guidance, review the CFPB’s overview of what closing costs include.
Who pays what in Hilliard
Customs in Ohio, including Franklin County, often look like this:
- You, the buyer, typically pay lender and loan-related fees plus the lender’s title insurance policy when you finance a home.
- Sellers in many Ohio transactions pay for the owner’s title insurance policy. This is a common custom, but it is negotiable.
- Buyers often pay for recording the deed and mortgage, along with some transfer-related costs. Specific splits vary by contract and local practice.
Because customs can vary, your agent and title company will confirm how fees are allocated in your contract. For statewide context on customs, you can consult Ohio REALTORS.
How much to budget in Hilliard
A simple planning rule is to set aside 2 to 5% of the purchase price for buyer-paid closing costs, not counting your down payment. This range aligns with national consumer guidance and reflects how loan type, points, escrow needs, and local fees can shift totals.
Here are Hilliard examples using that range:
Scenario A: $250,000 purchase price
- 2%: $5,000
- 3.5%: $8,750
- 5%: $12,500
Scenario B: $350,000 purchase price
- 2%: $7,000
- 3.5%: $12,250
- 5%: $17,500
Scenario C: $500,000 purchase price
- 2%: $10,000
- 3.5%: $17,500
- 5%: $25,000
Lower totals usually mean no points and smaller escrow deposits. Higher totals often reflect buying points to lower your rate, larger prepaids for taxes and insurance, and more robust inspection scope.
Line-item breakdown you can expect
Lender and loan fees
You’ll see an origination charge and, if you choose them, discount points to reduce your rate. Application, processing, and underwriting fees commonly total $300 to $1,500. Appraisals typically run $400 to $800, and credit reports are about $25 to $50. Smaller items like flood certifications or tax service fees may add $20 to $150 each.
Who pays: usually the buyer.
Title, settlement, and recording
Title work includes a title search or exam and a settlement or escrow fee, often $300 to $1,000 combined for search plus $200 to $800 for settlement. Title insurance includes two policies: an owner’s policy that often falls to the seller in Ohio by custom, and a lender’s policy that buyers typically pay when financing. Title premiums scale with price and may range from a few hundred to a few thousand dollars. Recording the deed and mortgage with Franklin County typically totals $50 to $300 depending on the schedule.
Who pays: varies by contract and local custom. Buyers commonly pay lender-related title charges and recording.
Prepaids and escrow deposits
Many buyers pay the first year of homeowners insurance at closing and fund an initial escrow for future tax and insurance bills. Property tax deposits depend on Franklin County’s tax calendar and whether taxes are current. If your loan requires private mortgage insurance, your lender may collect an initial amount into escrow.
Who pays: buyer.
Inspections and survey
A general home inspection often costs $300 to $600. Specialist inspections, such as radon, pest, roof, or sewer scope, can range from $75 to $400 each. A survey, if required by your lender or title company, may run $300 to $900.
Who pays: usually the buyer.
Prorations and miscellaneous
Property taxes, HOA dues, and similar items are prorated between you and the seller based on the closing date. Utility adjustments are often handled outside of closing but may appear as prorations.
Estimate your costs before touring
Use this simple checklist to build a working budget early:
- Ask a lender for a sample Loan Estimate for your target price and loan type. The Loan Estimate outlines expected lender fees and terms. Learn more about what a Loan Estimate includes.
- Use the 2 to 5% rule to set a planning range. Multiply your target price by 0.02 and 0.05, and keep a middle estimate at 3.5%.
- Add appraisal and inspection costs separately since you may pay them before closing.
- Request a sample title fee worksheet from a Franklin County title company for a Hilliard purchase price. This helps you estimate title premiums and settlement fees.
- Check the Franklin County Recorder for recording fees and conveyance information. Visit the Franklin County Recorder to review fee schedules.
- Review the Franklin County Auditor site for assessed values, tax rates, and the tax calendar. These details help estimate tax escrow and prorations. Start at the Franklin County Auditor.
- Confirm whether the seller customarily pays the owner’s title policy in the specific neighborhood. Customs vary, so get it in writing.
- Before closing, you will receive a Closing Disclosure with your final numbers. See what a Closing Disclosure covers.
If you are buying in the City of Hilliard, check for any municipal assessments or utility transfer steps on the City of Hilliard website.
Ways to reduce your cash to close
- Compare multiple lenders. Fees vary, and points can be adjusted based on your rate goals.
- Ask about seller credits. In some market conditions, sellers may agree to cover part of your costs, subject to loan rules and contract terms.
- Verify who pays for the owner’s title policy in your offer. In many Ohio deals, sellers pay it, but you should confirm.
- Request written quotes. Ask a title company for a fee worksheet and your lender for detailed Loan Estimates to spot savings.
Local resources for Hilliard buyers
- Franklin County Recorder for recording fees and conveyance details: Franklin County Recorder
- Franklin County Auditor for assessed values, tax rates, and tax calendar: Franklin County Auditor
- City information and potential assessments: City of Hilliard
- Consumer guidance on closing costs and documents: CFPB closing costs overview, Loan Estimate, and Closing Disclosure
- Custom and practice insights: Ohio REALTORS
Buying in Hilliard should feel exciting, not stressful. When you know how closing costs work and how to estimate them, you can focus on the right homes with confidence. If you want a clear closing plan, neighborhood insight, and skilled negotiation at every step, connect with Dedra Lucas for trusted local guidance.
FAQs
How much cash do Hilliard buyers need at closing?
- Plan for 2 to 5% of the purchase price for buyer-paid closing costs, plus your down payment and any inspections or appraisal you pay before closing.
Do Ohio sellers pay for owner’s title insurance?
- In many Ohio transactions the seller covers the owner’s title policy by custom, but this is negotiable and should be confirmed in your contract.
Are there transfer taxes in Franklin County, Ohio?
- Ohio does not have a uniform statewide real estate transfer tax like some states; check the Franklin County Recorder for any local conveyance and recording fees.
Which costs are paid before closing in Hilliard?
- Appraisals and inspections are commonly paid out of pocket before closing, while most other fees appear on the Closing Disclosure at settlement.
How do I get an accurate closing cost number?
- Use your lender’s Loan Estimate early on and review the Closing Disclosure issued at least three business days before closing for final, line-by-line amounts.
