What are closing costs?

Closing costs are the fees and expenses you pay when finalizing a conventional mortgage. They are separate from your down payment and are usually expressed as a percentage of the loan amount.

Typical cost categories

• Attorney fees: South Carolina traditionally uses an attorney to oversee the closing. The attorney reviews the deed, ensures the title is clear, and prepares the settlement statement. Fees often range from $500 to $1,500, depending on the complexity of the transaction.
• Title search and title insurance: A title search confirms that the seller has clear ownership. Title insurance protects both you and the lender against future claims. In South Carolina, title insurance premiums are regulated by the state insurance department and typically cost between $1,000 and $2,500.
• Appraisal fee: The lender requires a professional appraisal to verify the home’s market value. Expect a charge of $300–$600.
• Credit report fee: Lenders pull your credit report to assess risk. This fee is usually around $30–$50.
• Recording and filing fees: The county records the deed and mortgage, charging a fee that varies by jurisdiction, often $50–$150.
• Escrow deposits: Lenders may collect a few months’ worth of property taxes and homeowners insurance to hold in escrow. The exact amount depends on local tax rates and insurance premiums.

South Carolina‑specific considerations

Because South Carolina commonly requires an attorney at closing, you’ll see a distinct line item for legal services that may not appear in states that use title companies for this role. Additionally, the state offers a first‑time homebuyer assistance program through SC Housing, which can provide down‑payment or closing‑cost grants to eligible buyers.

These figures are general estimates and not personalized advice. I am not a licensed loan officer, financial advisor, or lender.