Buying a home in Westerville is exciting, but the closing table can feel like a mystery. You want to know exactly what you will owe beyond your down payment so there are no surprises. In this guide, you will learn what closing costs typically include, how local county fees and tax prorations work, and how to estimate your cash to close with confidence. Let’s dive in.
What closing costs cover
Closing costs are the expenses you pay to secure your loan, verify the property, insure title, record documents, and prepay items like taxes and insurance. Most buyers should plan for about 2% to 5% of the purchase price in closing costs, not including the down payment. Your exact number depends on your loan type, the home’s price, and whether the seller contributes.
In Westerville, homes sit in Franklin County and, in some areas, Delaware County. Certain fees and tax rates can differ by county, which affects your final total. Your lender’s Loan Estimate and your Closing Disclosure will show your specific numbers before you sign.
Typical buyer costs in Westerville
Lender fees
These are charges from your mortgage lender or broker for originating and processing your loan.
- Loan origination or application fee. Commonly $500 to $2,000, or a percentage of the loan amount.
- Underwriting or processing fee. Sometimes separate, often bundled with origination.
- Discount points. Optional prepaid interest to lower your rate. Each point equals 1% of the loan amount.
- Credit report. Often $25 to $50.
- Flood certification. Often $10 to $30.
- Upfront mortgage insurance. Required for some loans and can sometimes be financed.
Third-party services
These are services your lender or you order to evaluate the property and protect the loan.
- Appraisal. Typical Columbus-area range is $400 to $700 for a single-family home.
- Home inspections. General inspection often $300 to $600. Additional tests like radon, sewer scope, or pest are extra.
- Survey or plat. Sometimes required, often $300 to $800 or more based on lot and scope.
- Title search and exam. Verifies ownership and liens.
- Title insurance. Lender’s policy is usually required. An owner’s policy is optional but strongly recommended. Premiums are one-time and tied to price.
- Settlement or escrow fee. Title company charges to handle funds and documents. Commonly $200 to $800.
Title and settlement
Title insurance protects against certain past title defects. The lender’s policy protects the lender, and the owner’s policy protects your ownership. Who pays for the owner’s policy can vary by local practice and your purchase contract. Title and settlement charges are typically several hundred to a few thousand dollars combined, depending on price and policy selections.
Government and county fees
County offices charge to record the deed and mortgage. These recording fees are usually modest. Counties may also assess a conveyance or transfer fee. Who pays these fees can be negotiated in your contract. Because Westerville spans Franklin and Delaware counties, confirm the exact current rates with the appropriate county office for your specific property.
Prepaid items and escrow
Prepaids are costs that cover upcoming bills and help the lender set up your escrow account.
- Property taxes. You will pay your prorated share based on the closing date and local billing cycle.
- Homeowner’s insurance. Lenders typically require the first year’s premium paid at or before closing.
- Prepaid interest. Covers the interest from your closing date until your first mortgage payment.
- Initial escrow deposits. Lenders often collect 2 to 3 months of taxes and insurance to seed your escrow.
- HOA items. You may see prorated dues and any HOA transfer fees that apply.
Other possible charges
- Attorney fees if you choose separate legal counsel.
- Home warranty, typically $300 to $700 for one year if you elect one.
- Courier or wire fees, often $25 to $50.
Franklin vs. Delaware county notes
Westerville properties sit in Franklin County and, in some neighborhoods, Delaware County. Recording and conveyance fees, as well as effective property tax rates, are set by each county and can differ. The purchase contract will outline who pays which items by default, but everything is negotiable. To get precise numbers for your address, confirm fees with the correct county offices and your title company.
Prorations explained
Prorations split certain costs between you and the seller based on the closing date.
- Property taxes. Ohio counties bill taxes on a schedule that does not always line up with your closing. The title company calculates how much of the current period each party owes, then credits at closing.
- HOA dues. Ongoing dues are usually prorated by day so each party pays for the time they own the home.
- Utilities. Many utilities are settled outside of closing, but some communities handle final bills or reimbursements at the table.
The purchase agreement defines whether the day of closing belongs to the buyer or seller for proration math. Your settlement statement will show the credits and debits in detail.
Cash to close: how to estimate
Your cash to close combines your down payment, closing costs, and prepaids, minus any credits.
- Down payment.
- Lender fees and third-party fees.
- Title and settlement charges.
- Recording and any county conveyance fees assigned to you.
- Prepaid interest, taxes, and insurance.
- Initial escrow deposits.
- Credits from the seller or lender.
Sample worksheet
Here is a simple illustration for a $300,000 purchase with 20% down.
- Down payment: $60,000
- Closing costs at 2% to 4%: $6,000 to $12,000
- Prepaids and escrow deposits: $2,000 to $5,000
- Estimated cash to close: about $68,000 to $77,000
Your loan program, points, insurance needs, county fees, and any seller credits will change this number. Use your Loan Estimate early on, then your Closing Disclosure a few days before closing for the final figure.
Ways to reduce what you pay
- Compare lenders. Review multiple Loan Estimates and compare total costs, not just the rate.
- Ask for seller concessions. Credits can offset your closing costs, subject to loan program limits.
- Negotiate contract allocations. Decide who pays owner’s title, recording, or HOA transfer fees in your offer.
- Consider financing some costs. You may finance certain fees or upfront mortgage insurance if your program allows. This usually increases your loan balance and interest paid over time.
- Explore assistance programs. Local or state programs may offer down payment or closing cost help if you qualify.
Timeline and documents you will see
- Loan Estimate. Your lender provides this shortly after application. It outlines your projected rate, payment, and closing costs.
- Closing Disclosure. You must receive this at least three business days before you sign. It shows your final costs and cash to close.
- Funds to close. Plan to wire funds or bring a cashier’s check. Most title companies do not accept personal checks. Always verify wire instructions directly with the title company using a known phone number to avoid fraud.
Local verification checklist
- Confirm county. Determine whether your property is in Franklin County or Delaware County.
- Recording and conveyance fees. Check the appropriate county offices for current rates.
- Property taxes. Review the most recent tax bill and billing cycle for accurate prorations.
- Title insurance practice. Ask your title company who typically pays the owner’s policy in your area.
- Lender requirements. Verify escrow deposits, prepaid interest, and any program-specific fees with your lender.
Buying in Westerville should feel clear and predictable. When you understand each cost category and how county rules and timing affect your total, you can plan with confidence and avoid last-minute surprises. If you want a detailed, property-specific estimate and guidance through each step, connect with the local team that does this every day. Reach out to Angelina Fox-Smith & Company to get started.
FAQs
How much should I budget for buyer closing costs in Westerville?
- Most buyers plan for about 2% to 5% of the purchase price in closing costs, not including the down payment; your exact number depends on loan type, price, and any seller credits.
Who typically pays for the owner’s title insurance in Franklin County?
- It varies by local custom and your contract; in many Midwestern markets sellers often buy the owner’s policy, but it is negotiable and can differ by transaction.
How are Ohio property taxes prorated at closing?
- Taxes are split by day between buyer and seller based on the closing date and the county’s billing cycle, with credits shown on your settlement statement.
Can a seller in Westerville cover some of my closing costs?
- Yes, seller concessions are negotiable and can reduce your cash to close, subject to your loan program’s limits on contributions.
When will I know my exact cash to close?
- Your lender must deliver a Closing Disclosure at least three business days before closing; it shows your final costs and the exact amount to bring.
Are there first-time homebuyer programs in Central Ohio?
- Programs may be available at the state or local level and can change; ask your lender about current options and eligibility.
What form of payment should I bring to closing in Westerville?
- Plan to wire funds or bring a cashier’s or certified check as instructed by your title company; personal checks are rarely accepted.
