Buying in Lewis Center and wondering what you’ll pay at the closing table? You’re not alone. Closing costs can feel mysterious, especially when you’re trying to plan your cash to close. The good news: once you understand the main fee categories and local customs in Delaware County, the numbers become much more predictable, allowing you to budget with confidence and even negotiate some items. In this guide, you’ll learn what closing costs include, how much to plan for, how escrows and tax prorations work, and practical steps to keep your costs in check. Let’s dive in.
What closing costs cover
Closing costs are the fees due to finalize your home purchase and set up your loan and property services. They typically fall into a few buckets you’ll see itemized on your Closing Disclosure.
Lender and loan charges
These are the costs to originate and underwrite your mortgage. You may see:
- Origination or application fees
- Discount points if you choose to buy down your rate
- Underwriting, processing, and credit report fees
- Mortgage broker fees if you use a broker
Lenders must deliver a Loan Estimate within 3 business days of your application and a final Closing Disclosure at least 3 business days before closing. Review both carefully and walk through any questions with your lender or agent early.
Third‑party services
These are services ordered to support your loan or purchase:
- Appraisal
- Home inspection
- Survey, if required
- Pest/termite inspection, if required by the lender
- HOA document or transfer fees, if the property is in an association
Some of these are paid before closing, while others are collected at the closing.
Title and settlement
A title company or settlement agent handles your closing, ensures clear title, and issues title insurance. You’ll typically see:
- Title search and exam
- Lender’s title insurance policy (required by your lender)
- Optional owner’s title insurance policy
- Settlement or closing fee
- Courier, wire, and administrative fees
Who pays for an owner’s title policy varies by local custom and the terms negotiated in your purchase contract.
Government and recording
These are public charges to record your deed and mortgage and to transfer ownership:
- Recording fees with the Delaware County Recorder
- State or county conveyance fees, as applicable
- Payoffs or prorations tied to local assessments
Prepaids and initial escrow deposits
Prepaids set you up for upcoming bills that arrive after closing. You’ll usually fund:
- Prepaid interest from the day your loan funds to month‑end
- The first year of homeowner’s insurance (or at least the initial premium your lender requires)
- An initial deposit into your mortgage escrow account to cover future property taxes and insurance
- Mortgage insurance premium upfront on certain loan types, if applicable
Other possible costs
- HOA move‑in or capital contribution fees
- A home warranty, if you choose to purchase one
How much to budget in Lewis Center
A practical planning range is about 2% to 5% of the purchase price in total buyer closing costs, not including your down payment. Your number will vary based on:
- Loan type and down payment
- Whether you pay discount points
- Local title, recording, and government fees
- How much you prepay into escrow for taxes and insurance
- Any seller concessions you negotiate
Common ranges to keep in mind:
- Appraisal for a single‑family home often runs about $300 to $700
- Recording fees are usually modest flat fees that vary by county
- Initial escrow deposits commonly equal 2 to 6 months of projected tax and insurance payments
Your lender’s Loan Estimate will show a personalized breakdown, and a local title company can prepare a sample buyer estimate to help you preview totals before you write an offer.
Prepaids and escrow explained
Escrow can mean two different things in a home purchase. It helps to separate them.
Settlement escrow at closing
This is the neutral account the title company uses to collect and disburse funds on closing day. Your down payment and closing funds flow in, and the title company pays the seller, pays off liens, and covers invoices.
Mortgage escrow account
This is the separate account your lender sets up to collect property taxes and homeowner’s insurance along with your monthly mortgage payment. At closing, you’ll fund an initial cushion so the lender has enough to pay those bills when due. Federal rules limit the cushion to no more than two months of escrow payments beyond what will be needed for upcoming bills. Your lender can explain exactly how this deposit is calculated for your loan.
Prepaids and initial escrow deposits can be a large part of your cash to close. Plan for them early so there are no surprises.
Title and settlement in Delaware County
In Ohio, title companies commonly handle closings and issue title insurance. Here’s what to know for Lewis Center transactions:
- Lender’s title insurance is required when you finance. An owner’s title policy is optional but strongly recommended to protect your interests.
- In many Central Ohio deals, the seller often pays for the owner’s policy and the buyer pays for the lender’s policy. This is a custom, not a rule, and you can negotiate who pays for which policy in the purchase contract.
- Title and settlement fees vary by provider. You can shop for title services unless your purchase agreement specifies the provider. Compare both fees and service.
Taxes and prorations in Lewis Center
Property taxes in Delaware County are assessed by the Auditor and collected by the Treasurer. At closing, taxes are prorated between you and the seller based on the closing date and the local billing cycle. If the seller has already paid part of the current tax period, they receive a credit for their share. You pay the remainder going forward.
Because billing is tied to the county’s schedule and payment status on the specific parcel, the proration on your settlement statement depends on:
- The exact closing date
- Whether the current installment was paid by the seller
- The proration method used by the settlement agent
To estimate this line item, we typically coordinate with the title company using the Delaware County Auditor and Treasurer records for the home you’re buying.
What is negotiable
You have several ways to reduce or shift closing costs. The best approach depends on your loan type and market conditions.
Seller concessions
You can request that the seller pay some of your closing costs. Limits depend on loan program rules and down payment. Examples include:
- Conventional loans: caps vary by loan‑to‑value and occupancy
- FHA loans: seller contributions are typically capped at a set percentage of the sale price
- VA loans: sellers can pay most buyer costs and certain concessions, subject to VA rules
- USDA loans and other programs have their own limits
Current limits vary by program, so this is something to confirm with your lender as you structure your offer.
Lender credits and points
You can often trade rate for cost. A lower rate may require paying points. A slightly higher rate may allow the lender to offer a credit that covers part of your closing costs. Ask for side‑by‑side scenarios and a break‑even analysis.
Title, inspections, and other choices
- You can shop title and settlement providers when not dictated by contract
- You choose your home inspection company; prices and scopes vary
- Home warranties and optional services can be added or removed based on your budget
Smart steps to plan your budget
Use this checklist as a planning guide to keep your closing costs predictable and manageable.
- Get pre‑approved and request a realistic Loan Estimate with itemized costs early
- Ask a local title company for a sample buyer estimate for your price range in Lewis Center
- Confirm with your lender whether you will escrow taxes and insurance and how they will calculate the initial deposits
- Decide if you want to pay points or seek a lender credit and compare the long‑term savings
- If you need help with cash to close, discuss seller concessions with your agent and confirm loan program limits
- Verify the property’s tax billing status with the Delaware County Auditor and Treasurer to anticipate prorations
- Compare 2 to 3 lenders for rate and fee combinations and 1 to 2 settlement providers for title charges
Timeline and what to bring to closing
Here’s how the process typically flows once you have an accepted offer:
- Within 3 business days of application: your lender issues the Loan Estimate
- After application: appraisal is ordered, then underwriting reviews your file
- At least 3 business days before closing: you receive the Closing Disclosure
- Before closing: review the Closing Disclosure, wire or bring certified funds per instructions, and resolve any open conditions
Bring a government‑issued photo ID and follow the secure wire instructions provided by your title company. If wiring funds, verify instructions by phone using a trusted number from your lender or title company.
Quick reference: what is paid when
- Paid before closing: home inspection, sometimes the appraisal
- Paid at closing: lender and title fees, recording fees, transfer/conveyance fees, any agreed seller credits applied
- Prepaids at closing: homeowner’s insurance premium, prepaid interest, and initial escrow deposits for taxes and insurance
Putting it all together
Closing costs in Lewis Center are predictable once you break them into categories and account for prepaids and prorations. Start with the 2% to 5% rule of thumb, then refine using your Loan Estimate and a local title estimate. From there, you can use seller concessions, lender credits, and vendor shopping to tailor your cash to close and monthly payment to your goals.
If you want a local, line‑by‑line estimate for a specific price point or neighborhood, our team can walk you through the numbers and model different scenarios before you write an offer that fits your budget and timeline. When you are ready, connect with Kelly Ludwig to request a personalized market consultation.
FAQs
How much should a Lewis Center buyer budget for closing costs?
- A practical starting point is 2% to 5% of the purchase price excluding your down payment. Your lender’s Loan Estimate will provide a tailored figure.
What closing costs can a seller pay in Delaware County, Ohio?
- Seller‑paid costs, called concessions, are common but capped by your loan type. Ask your lender for current limits before including them in your offer.
What is the difference between prepaids and closing costs for a mortgage?
- Prepaids fund upcoming expenses like insurance and interest and seed your escrow account. Closing costs pay for services and fees tied to your loan and settlement.
Do I need owner’s title insurance when buying in Lewis Center?
- Your lender requires a lender’s policy. An owner’s policy is optional but strongly recommended to protect your ownership. Who pays is negotiable by contract.
How are Delaware County property taxes handled at closing?
- Taxes are prorated based on your closing date and the county’s billing cycle. The seller is credited for the period they owned the home; you take over from there.
When will I see my final closing numbers?
- You must receive your Closing Disclosure at least 3 business days before closing. Review it against your Loan Estimate and ask your lender or title company to explain any differences.