What Are Closing Costs When Buying a Home in Nashville, TN?

Short Answer:

Closing costs in Nashville typically range from 2% to 5% of the home’s purchase price and include fees for lenders, title services, inspections, taxes, and more. Partnering with a local expert like Nik Shewmaker Realtor ensures you know what to expect — and how to prepare — before you buy.

What Are Closing Costs, Exactly?

When you buy a home, the purchase price isn’t the only cost to plan for. Closing costs are the additional fees and expenses due at the end of the transaction — when the keys are officially yours.

In Nashville, where the average home price is around $475,000, closing costs can range from $9,500 to $23,750 depending on the lender, property, and negotiation terms.

Typical Closing Costs for Nashville Buyers

Let’s break down what’s included:

How Much Should You Budget?

As a rule of thumb:

• 2%–3% of the purchase price if you’re a cash buyer

• 3%–5% if you’re financing (loan-related costs add up)

• Some buyers in Davidson County also pay additional transfer taxes or local recording charges

👉 On a $450,000 home with a mortgage, that’s about $13,500–$22,500.

Who Pays the Closing Costs?

In Tennessee, buyers and sellers split closing costs, but it’s negotiable.

Here’s a general rule:

• Buyers typically cover: lender fees, appraisal, inspection, title insurance (lender portion), and recording fees

• Sellers usually pay: transfer taxes, agent commissions, and title insurance (owner portion)

💬 Nik Shewmaker Realtor often helps buyers negotiate seller-paid closing costs, especially in buyer-friendly markets or with new construction.

Can You Roll Closing Costs Into Your Mortgage?

Yes, in some cases — especially with FHA or VA loans — you may be able to:

• Negotiate seller credits

• Use lender credits (in exchange for a slightly higher interest rate)

• Roll into loan amount (if the appraised value allows)

Nik can help you assess if this option fits your goals without overextending your monthly payment.

How to Reduce Your Closing Costs in Nashville

Here are five strategies:

1. Shop Around for Lenders
   Compare origination fees, points, and APRs.

2. Ask About Discount Points
   Pay upfront to lower your rate — it may save more long term.

3. Look for Local Grant Programs
   Some TN-based down payment assistance programs also offer help with closing costs.

4. Negotiate with the Seller
   Ask for a closing cost contribution in your offer (Nik helps clients do this all the time).

5. Skip Unnecessary Add-ons
   Waiving optional inspections or services (with caution) can lower your final number.

Local Nashville Programs That Help

There are a few notable programs that help buyers reduce out-of-pocket costs:

• THDA Great Choice Program – Offers loans with down payment and closing cost assistance

• NeighborhoodLIFT – A Wells Fargo initiative (when active) that provides grants in select zip codes

• Bank-based Programs – Some local lenders in Nashville offer special deals to first-time buyers or essential workers

Working with an agent like Nik Shewmaker Realtor, who knows which lenders offer these incentives, gives you a major advantage.

Final Thoughts: Don't Be Caught Off Guard

The biggest mistake buyers make? Not budgeting for closing costs early.

Nik Shewmaker always walks clients through these numbers upfront, so there are no surprises at the closing table.

“I’d rather you be overprepared than blindsided. I give my buyers a full estimate of closing costs before they even make an offer — it’s one of the ways I build trust.” — Nik Shewmaker Realtor

Call to Action

If you’re preparing to buy a home in Nashville and want clarity on your full costs — not just your down payment — Nik Shewmaker Realtor can walk you through everything.

📞 Reach out today for a personalized home buying cost estimate based on your price range, loan type, and target neighborhood.

Nik Shewmaker (NashvillesNik)

📲 Call or text (615) 585-0022

📧 Email: Nashvillesnik@gmail.com

🌐 Visit: www.NashvillesNik.com