Are you budgeting for a home in Columbus and wondering how much to set aside for closing? You are not alone. Closing costs can be confusing, and the totals vary based on your loan, timing, and local customs. In this guide, you will learn what typical buyer closing costs look like in Columbus and Bartholomew County, what they include, who usually pays what, and smart ways to lower your out-of-pocket amount. Let’s dive in.
Typical costs in Columbus
Most buyers should plan for about 2% to 5% of the purchase price for closing costs as a starting estimate. For a $200,000 home, that is roughly $4,000 to $10,000. Keep in mind this range does not fully capture prepaids and escrow deposits for property taxes and insurance, which can add significantly to your cash needed at closing.
The exact amount depends on your loan type, lender pricing, title fees, the closing date, and what you negotiate with the seller. Your Loan Estimate and later your Closing Disclosure will show your exact numbers.
What closing costs include
Closing costs fall into a few main buckets. Here is what you can expect in Bartholomew County, with typical ranges. Always confirm with your lender and title company.
Lender fees
- Loan origination and underwriting: commonly 0.5% to 1.5% of the loan amount, or a flat fee.
- Discount points: optional, each point equals 1% of the loan amount to reduce your rate.
- Credit report and application: about $25 to $75.
- Appraisal: about $400 to $800, based on property size and complexity.
- Mortgage insurance or program fees: FHA has an upfront mortgage insurance premium, VA loans have a funding fee, and conventional loans may require monthly PMI with less than 20% down.
- Rate lock or extension fees: charged if a lock expires or is extended.
Inspections and surveys
- General home inspection: about $300 to $600 or more depending on the property.
- Survey if needed: about $300 to $900.
- Pest or wood-destroying insect inspection if required: about $50 to $200.
Title and settlement fees
- Title search, exam, and settlement: about $300 to $1,200 depending on provider and price point.
- Lender’s title insurance policy: required with a mortgage, often several hundred to over $1,000 depending on loan amount.
- Owner’s title insurance policy: optional but recommended to protect your ownership, priced by purchase amount.
Recording and transfer fees
- Recording fees at the county recorder: typically $20 to $200 depending on documents recorded.
- Transfer and documentary fees: Indiana does not have a statewide real estate transfer tax like some states, but state and local recording charges apply. Confirm current schedules with Bartholomew County offices.
Prepaids and escrow deposits
These can be among your largest cash items at closing.
- Prepaid interest: depends on your closing date and rate, often a few hundred to a few thousand dollars.
- Homeowner’s insurance: often one year paid at closing.
- Initial escrow deposits: lenders commonly collect 2 to 6 months of taxes and insurance to fund your escrow.
- Property tax proration: you reimburse the seller for taxes already paid for the period you will own the home, based on the closing date and local tax schedule.
HOA and local items
- HOA transfer or initiation fees if applicable: often $100 to $400 or more.
- Municipal or utility items: utility transfers, septic or well certifications, or city inspections, if required.
Who pays what locally
Who pays which fees can be negotiable and depends on market custom.
- Buyers typically pay: lender fees, appraisal, inspections, lender’s title policy, homeowner’s insurance, recording fees for the mortgage, prepaid interest, escrow deposits, and the buyer side of prorated taxes.
- Sellers commonly pay: brokerage commission and sometimes the owner’s title policy in parts of Indiana, although this is not universal. Seller-paid concessions toward buyer closing costs are negotiable and depend on the market and loan program limits.
In Columbus and the broader Midwest, practices can vary by neighborhood and season. Ask your agent and title company what is customary today, and use that to shape your offer strategy.
Cash-to-close examples
Use the 2% to 5% guideline for planning, then add prepaids and escrows for a more complete picture.
- $150,000 purchase: about $3,000 to $7,500 in closing costs, plus prepaids and escrow deposits.
- $250,000 purchase: about $5,000 to $12,500 in closing costs, plus prepaids and escrow deposits.
On some purchases, prepaids and escrows can equal or exceed the third-party fee total. Your exact numbers will appear on the Loan Estimate and Closing Disclosure.
Lower your cash needed
You have several ways to reduce out-of-pocket costs or shift who pays them.
Negotiate with the seller
- Request a seller credit toward closing costs.
- Ask the seller to pay the owner’s title policy or specific fees like HOA transfer charges.
- Structure credits to meet loan program limits.
Shop and compare lenders
- Compare origination fees, points, and rates across multiple lenders.
- Consider lender credits. You accept a slightly higher rate and the lender covers part of your costs. This lowers cash due at closing but increases the monthly payment.
- Ask about low or no origination options and weigh the total cost over the time you expect to own the home.
Look for assistance programs
- Check Indiana state housing programs and local Columbus or Bartholomew County resources for down payment or closing cost assistance for eligible buyers.
- Explore employer, nonprofit, or veteran-related assistance if applicable.
Structure and timing
- Roll allowable fees into the loan when permitted by the program.
- Consider the value of buying points only if you plan to hold the loan long enough to break even.
- Use eligible gift funds when allowed and prepare the required documentation early.
Smart shopping tips
- Compare reputable local title and settlement providers before bundling services.
- Time your closing to manage prepaid interest. The specific effect depends on your interest calculation and closing date, so confirm with your lender.
- Combine inspections when practical and request seller credits for repairs when appropriate.
Get exact local numbers
Use this quick checklist to dial in your Columbus, IN closing costs:
- Request your Loan Estimate within three business days of application. Compare at least two lenders line by line.
- Ask your title or settlement company for an itemized fee estimate for Bartholomew County.
- Confirm recording fees and any state or county charges with local offices.
- Ask your agent what is customary in Columbus for owner’s title insurance and seller concessions.
- Verify property tax proration method and current taxes with the title company or county.
- Review your Closing Disclosure at least three business days before closing and ask questions about any line items you do not recognize.
Protect your funds
Wire fraud is a real risk. Before sending any funds, call a known phone number for the title company to verify wiring instructions. Do not rely only on email. Confirm every change by phone.
Ready to plan your purchase?
Closing costs are manageable when you know what to expect and how to negotiate. With clear estimates, smart lender shopping, and a local strategy for seller concessions, you can keep more cash in your pocket on closing day. If you want help budgeting for your specific price point and loan type in Columbus, our team is here to guide you from first conversation to keys in hand.
Reach out to schedule a quick planning call with Hillary Maple | The Nolting Team for local numbers, negotiation strategies, and a smooth path to closing.
FAQs
How much should Columbus buyers budget for closing costs?
- Plan for about 2% to 5% of the purchase price for closing costs, plus prepaids and escrow deposits, which can add a significant amount to your cash to close.
Can Columbus buyers roll closing costs into the mortgage?
- Some fees can be financed depending on the loan program, but many third-party fees and most prepaids must be paid at closing. Confirm what your program allows.
Will sellers in Bartholomew County pay my closing costs?
- Seller-paid costs are negotiable. Many buyers secure some concessions, but what is possible depends on market conditions and loan program limits.
Do Columbus buyers need owner’s title insurance?
- It is optional but recommended to protect your ownership interest. Whether the seller pays for it can be a local custom, so confirm with your agent and title company.
Where can Columbus first-time buyers find closing cost help?
- Check Indiana state housing programs and local Columbus or Bartholomew County resources and nonprofits for grants or deferred loans that can assist with closing costs.
