Most buyers focus on the down payment and get blindsided by everything else. Here's the full cash-to-close picture so there are no surprises at the closing table.
Hey friends. One of the biggest surprises for first-time buyers in the Triangle is how much cash is actually needed to close. Most people focus on the down payment and then get blindsided by everything else. This post breaks it all down so there are no surprises at the closing table.
The down payment is the biggest number but it is not the only number. Here is what different loan types require on a $435,000 home, which is close to the current Raleigh median:
| Loan Type | Down Payment Required |
|---|---|
| FHA loan (3.5% down) | Approximately $15,225 |
| Conventional (3% down, first-time buyer programs) | Approximately $13,050 |
| Conventional (5% down) | Approximately $21,750 |
| Conventional (10% down) | Approximately $43,500 |
| Conventional (20% down) | Approximately $87,000 |
| VA or USDA loan | $0 down if you qualify |
Remember: the NC 1st Home Advantage Down Payment program can provide $15,000 toward your down payment and closing costs if you qualify as a first-time buyer or veteran. See our earlier blog post on that program for details.
Closing costs in North Carolina typically run 2% to 5% of the purchase price. On a $435,000 home that is approximately $8,700 to $21,750. Here is what makes up those closing costs:
North Carolina requires a licensed closing attorney. Expect $700 to $1,400, which typically bundles the title search and examination.
Loan origination, underwriting, processing, and credit report fees. These vary by lender but can run $1,000 to $3,000 total.
$500 to $700, paid upfront to the lender before closing.
Lender's title insurance runs approximately $1,200 to $1,800. Owner's title insurance is optional but recommended and adds $800 to $1,500.
Property taxes and homeowner's insurance collected at closing to fund your escrow account. This category alone can run $3,000 to $6,000 depending on your tax rate, insurance premium, and the time of year you close.
$80 to $200 to officially record the deed and deed of trust.
Paid directly to the seller when you go under contract and is non-refundable. In today's Triangle market it typically runs $500 to $2,000 or more for competitive properties. This is separate from your earnest money deposit and separate from closing costs.
$375 to $475 for a standard inspection, paid at the time of the inspection, not at closing. Add $75 to $200 for termite, $100 to $250 for radon, and more for any specialty inspections.
$400 to $800 if needed. Recommended but not always required.
The costs do not stop at closing. Here is what to budget for in the first few months after you move in:
$500 to $3,000 depending on distance and volume.
$100 to $200. Always do this after buying a resale home.
Refrigerators, washers, and dryers often do not convey in NC resale transactions. New construction almost never includes them. Budget $1,500 to $5,000 depending on what you need.
Blinds and curtains rarely convey. A whole house can run $1,000 to $3,000.
Even well-maintained homes often need something. Budget $500 to $2,500 for small items.
$100 to $500 depending on your providers.
Here is what a first-time buyer in the Triangle genuinely needs to have available in cash to close on a $435,000 home with an FHA loan, not counting the down payment assistance programs:
Total realistic cash needed: approximately $32,000 to $36,000 before assistance programs.
With the $15,000 NC 1st Home Advantage Down Payment program and seller concessions, a well-structured deal can bring that number down significantly or to zero for the right buyer.
Understanding the full cost picture before you start your search makes everything easier. You know your real budget, you can plan your savings correctly, and there are no surprises when you get the closing disclosure.
If you want to run the numbers for your specific situation, income, loan type, and target price range, reach out. I do this every day and can give you a straight picture of what you actually need.
Straight answers about what it really costs to buy a home in the Triangle.