Are you trying to budget for closing day in Hattiesburg but not sure what the final number will look like? You are not alone. Closing costs can feel confusing, especially when you are also planning for a down payment and moving expenses. In this guide, you will learn what buyers in the Pine Belt typically pay, how to estimate your total, and where local customs can shift who pays for certain items. Let’s dive in.
What closing costs include
Closing costs are the one-time fees you pay to get a home loan, transfer ownership, and set up your new mortgage. For most Hattiesburg buyers, these costs (not including your down payment) run about 2% to 5% of the purchase price, plus any prepaid items like taxes, insurance, and interest. Your exact total depends on your loan type, local title fees, and any credits you negotiate.
Federal rules require lenders to give you a Loan Estimate soon after you apply and a Closing Disclosure at least three business days before closing. These two documents are the best sources for your final numbers.
Typical buyer fees in Hattiesburg
Below are common line items you will see at closing, with typical ranges for planning. Local fees in Forrest and Lamar counties can vary slightly, so verify with your lender and title company.
Loan-related lender fees
- Loan origination, processing, and underwriting. Usually 0.5% to 1.5% of the loan amount, or a flat $500 to $2,000. Paid by you.
- Rate lock fee. Sometimes charged, often $0 to $500 depending on lock period.
- Discount points. Optional prepaid interest to lower your rate. You choose whether to buy points.
Appraisal, inspection, and reports
- Appraisal. Commonly $350 to $800, required for most loans. Paid by you.
- General home inspection. Usually $300 to $600 and strongly recommended. Paid by you.
- Specialty inspections. Termite inspections are common in the Southeast and often run $50 to $250. Other tests like radon, HVAC, or sewer scopes vary.
Title, closing, and recording
- Title search or exam. Typically $150 to $400. In many cases the buyer pays, but local custom can vary.
- Lender’s title insurance. Required by most lenders. Cost ranges from a few hundred to over a thousand dollars.
- Owner’s title insurance. Protects your ownership. Who pays depends on local custom and negotiation.
- Closing or settlement fee. Usually $300 to $800. Payment can be split or negotiated.
- Recording fees. County charges to record the deed and mortgage are usually modest in this area. Who pays which recording fees can vary by local practice.
Prepaids and escrow setup
- Prepaid property taxes. You may reimburse the seller for taxes already paid or fund your new escrow.
- Homeowners insurance. Often one year up front, plus a reserve.
- Prepaid interest. Interest from your closing date to your first payment.
- Initial escrow deposits. Lenders often collect two months of reserves for taxes and insurance.
These prepaid and escrow items can add several hundred to a few thousand dollars depending on the closing date and the property’s tax and insurance amounts.
Government and program-specific fees
- FHA loans. Include an upfront mortgage insurance premium that can be financed or paid at closing.
- VA loans. Include a funding fee that can be financed. VA also has specific rules for seller concessions.
- USDA loans. Often used in rural or edge areas and include an upfront guarantee fee.
These program fees can change your cash to close, so ask your lender for the exact amounts for your loan type.
Other possible charges
- Survey. Typically $300 to $800 if required or requested.
- HOA-related fees. Transfer or estoppel fees for condo or HOA communities.
- Courier, wire, and overnight fees. Small charges, often $25 to $100, that add up.
- Attorney fees. If an attorney closes your file, plan for $200 to $1,000 depending on services.
Who usually pays what here
Local custom matters across the Pine Belt. Sellers commonly pay the real estate commission. Buyers typically pay most loan-related fees, inspections, and lender-required title items. Who pays the owner’s title insurance and how you split the settlement and recording fees can vary by county and by negotiation. Your contract and the title company’s fee sheet will clarify the split in Forrest or Lamar County.
The bottom line: many costs are negotiable. You can ask for seller concessions, seek lender credits, or choose a slightly higher rate in exchange for lower upfront costs. Program rules limit how much help you can receive, so confirm your loan’s caps before making offers.
How to estimate your total
Quick budgeting rules
- Plan for about 3% to 5% of the purchase price for closing costs on a typical conventional loan.
- In some cases, costs can be closer to 2%, especially if you receive credits.
- Add prepaid taxes, insurance, and interest on top. That can be several hundred to a few thousand dollars.
Sample Hattiesburg scenarios
- $200,000 purchase: 2% is $4,000, 3% is $6,000, 5% is $10,000. Prepaids might add $800 to $2,500. Budget roughly $4,800 to $12,500.
- $300,000 purchase: 2% is $6,000, 3% is $9,000, 5% is $15,000. Prepaids might add $1,000 to $3,500. Budget roughly $7,000 to $18,500.
These are planning figures. Your lender’s Loan Estimate will reflect your exact loan, property, and timing.
Ways to reduce out-of-pocket costs
- Seller concessions. Ask the seller to cover some or all of your closing costs, subject to program limits.
- Lender credits. Accept a slightly higher rate in exchange for credits at closing.
- Finance allowable fees. Some programs let you finance specific costs, which increases your loan amount.
- Assistance programs. State and local programs may help with down payment or closing costs if you qualify.
Get precise numbers before touring
- Ask two or three lenders for a sample Loan Estimate for the loan type you expect to use.
- Use 3% of your target price as a quick estimate, then adjust once you see lender fee sheets.
- Contact a local title company or closing attorney for a sample settlement statement in Forrest or Lamar County.
Hattiesburg and Pine Belt specifics
Hattiesburg spans Forrest and Lamar counties. Recording and filing fees are set by each county’s clerk or recorder. These fees are typically modest and depend on how many documents and pages are recorded. Mississippi does not have a widely used statewide real estate transfer tax like some states. Expect standard county recording costs and prorated property taxes.
Local custom affects who pays the owner’s title insurance and how certain settlement charges are split. Always confirm the expected split with your title company and review it on your Loan Estimate and Closing Disclosure. If you are using FHA, VA, or USDA financing, your lender will detail program-specific fees and any limits on seller-paid costs.
If you need help with upfront funds, look into state-supported down payment or closing cost assistance. The Mississippi Home Corporation and local non-profits may offer programs for eligible buyers. Community banks and credit unions in the Pine Belt sometimes run promotions or reduced origination fees, so it pays to compare two or three lenders.
Buyer checklist: next steps
- Budget 3% to 5% of your target price for closing costs, plus prepaids.
- Request sample Loan Estimates from two or three lenders for your likely loan program.
- Ask a Forrest or Lamar County title company for typical title premiums and settlement fees.
- Plan for inspection and appraisal costs early in your timeline.
- Discuss seller concessions with your agent before you write offers.
- Explore state and local assistance options before assuming you must cover everything yourself.
Work with a local guide you trust
Closing costs do not have to be a mystery. With clear estimates from your lender, a local title quote, and smart negotiation, you can plan your cash to close with confidence. If you would like a step-by-step plan based on your price range and loan type, we are here to help.
Book a quick strategy call with the team at AM EQUITY REALTY to compare lender quotes, understand title fees in Forrest and Lamar counties, and build a clean, realistic budget for closing day.
FAQs
How much should a first-time buyer in Hattiesburg budget for closing costs?
- A good starting point is 3% of the purchase price, plus several hundred to a few thousand dollars for prepaid taxes, insurance, and interest.
When will I see my exact closing costs for a Hattiesburg home?
- Your lender must provide a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing.
Can the seller pay my closing costs in Mississippi?
- Yes, seller concessions are common and negotiable, but your loan program sets limits on how much the seller can contribute.
Are there special closing fees for FHA, VA, or USDA loans?
- Yes, these programs include items like FHA upfront mortgage insurance, a VA funding fee, or a USDA guarantee fee that can change your cash to close.
Who usually pays for owner’s title insurance in the Pine Belt?
- It varies by local custom and negotiation; confirm expectations with your title company and agent for Forrest or Lamar County.
What local government fees should I expect in Hattiesburg?
- Expect modest county recording fees for the deed and mortgage and prorated property taxes; Mississippi does not have a widely used statewide transfer tax.
What should I bring to the closing appointment?
- Bring a government photo ID, certified funds or a confirmed wire per the title company’s instructions, and any documents your lender requests.
