The Full Breakdown of Closing Costs When Buying a Home in Middle Tennessee

If you’re preparing to buy a home in Middle Tennessee, you’ve probably already calculated your down payment and monthly mortgage payment. But one cost that often takes buyers by surprise is closing costs. On average, buyers in Tennessee can expect to pay between 2% and 5% of the purchase price in closing costs. For a $350,000 home, that means anywhere from $7,000 to $17,500.

Here’s a full breakdown of what’s included in closing costs so you can plan ahead with confidence.

1. Lender Fees

When you take out a mortgage, your lender charges fees to process the loan. These often include:

• Origination Fee – Typically 0.5%–1% of the loan amount. Covers loan processing and underwriting.

• Application Fee – Flat fee charged by some lenders (not always required).

• Credit Report Fee – Around $30–$50 to pull your credit history.

2. Appraisal & Inspection Costs

Before final approval, the lender requires an appraisal to confirm the home’s value. Buyers also typically pay for inspections to ensure the property is in good condition.

• Appraisal Fee – $500–$750 in Middle Tennessee.

• Home Inspection – $400–$600, depending on size of the property.

• Optional Inspections – Termite ($100–$150), radon ($150–$200), or specialized inspections if needed.

3. Title & Attorney Fees

Title services protect you by ensuring the property has a clear ownership history.

• Title Search – $300–$500.

• Title Insurance (Owner’s Policy) – Typically $1,000–$2,000 (varies with purchase price).

• Settlement / Closing Attorney – In Tennessee, closings are usually handled by attorneys. Expect $500–$1,000 in attorney fees.

4. Prepaid Expenses (Escrows)

These aren’t technically fees, but upfront costs required at closing to set up your escrow account.

• Property Taxes – Depending on the month you close, you may need to prepay several months’ worth.

• Homeowners Insurance – Lenders require the first year of insurance to be paid upfront. Average in Middle Tennessee: $1,200–$2,000 annually.

• Mortgage Interest – You’ll prepay interest from your closing date to the end of that month.

5. Recording & Other Government Fees

• Recording Fees – Around $100–$150 to officially record your deed with the county.

• Transfer Taxes – Tennessee charges a transfer tax of $0.37 per $100 of the purchase price. For a $350,000 home, that’s $1,295.

6. Optional Costs

Depending on your situation, you may also see:

• Survey Fee – $400–$600 if required.

• HOA Transfer Fees – If the property is in a homeowners association, transfer/setup fees can range from $200–$500.

• Home Warranty – Some buyers choose to purchase a warranty at closing, usually $500–$700.

Can Sellers Help with Closing Costs?

Yes! In Middle Tennessee, it’s common for buyers to negotiate seller-paid closing costs, especially with first-time homebuyers or in new construction. Depending on the loan type:

• FHA loans allow sellers to contribute up to 6% of the purchase price.

• Conventional loans typically allow 3%–9% depending on down payment.

This can save you thousands upfront and make your purchase more affordable.

The Bottom Line

Closing costs in Middle Tennessee can add up quickly, but knowing what to expect helps you budget wisely. On a $350,000 home, you should plan for $7,000–$17,500 in closing costs—though seller concessions may reduce your out-of-pocket expenses.