Comparing homes in Logan County, Kentucky and just over the Tennessee line? You are smart to ask how closing costs differ. Even small variations in recording fees, transfer taxes, and title charges can change your bottom line. In this guide, you will learn what buyer closing costs include, where Tennessee and Kentucky often diverge, and how to get side‑by‑side estimates so you can plan with confidence. Let’s dive in.
What buyer closing costs include
Closing costs are the fees you pay to set up your loan and transfer ownership. Nationally, buyers often spend about 2% to 5% of the purchase price on closing costs, not including the down payment. You can read a plain‑English overview from the Consumer Financial Protection Bureau in their guide to what closing costs are and how they work.
Lender and loan fees
These are charges from your lender and required third parties.
- Origination fee or loan charge. Sometimes shown as a flat fee or a percentage.
- Discount points. Optional, paid to reduce your interest rate.
- Appraisal, credit report, flood certification, and tax service.
- Processing and underwriting fees, wire fees, and any rate‑lock fees.
A common national range for these combined items is about $1,000 to $4,000, or roughly 0.5% to 1.5% of the loan amount depending on the program and whether you buy points.
Title, settlement, and title insurance
A title company searches the public record, clears title issues, and handles closing.
- Title search and examination, document prep, and settlement agent fee.
- Lender’s title insurance policy, usually required by your lender.
- Owner’s title insurance policy, optional for you but widely purchased.
For a consumer‑friendly explainer, see ALTA’s overview of title insurance basics. Combined title, search, and closing fees often range from a few hundred to more than a thousand dollars, with the title insurance premium tied to price and state rules.
Recording, transfer, and documentary charges
These are paid to county and state offices to record your deed and mortgage. You might see modest per‑document recording fees. Some jurisdictions also charge transfer, conveyance, or mortgage taxes that are based on price or on each $100 of consideration. This is the category where Tennessee and Kentucky often differ the most.
Prepaids and initial escrow deposits
These are not fees, but upfront housing costs collected at closing.
- Prepaid interest from your closing date to your first payment.
- First year or portion of your homeowners insurance premium.
- Property tax prepaids plus an initial escrow deposit, often 2 to 6 months of taxes and insurance.
Depending on timing, these items can run a few hundred to several thousand dollars.
Other possible buyer costs
You may also see home inspection, pest inspection, survey, septic or well inspections, HOA transfer fees, and any repair costs you agree to cover. Special paperwork, like recording a power of attorney for a remote closing, can add small fees.
Tennessee vs. Kentucky: key differences to watch
Transfer and recording taxes
- States and counties set their own rules. Some charge a deed transfer or mortgage tax, and some do not. The rate and who typically pays can differ by county.
- Recording fees are set locally and vary by document and page count.
- Because these are county‑specific, you will want a local title estimate and to verify recording and transfer charges with the county clerk in the county where the property records.
Title insurance pricing environment
Title premiums and some settlement charges are influenced by state regulation and local market practices. One side of the border may have filed or regulated rates, while the other may be more market‑driven. This can lead to different premium levels for the same price point.
Local custom on who pays what
Law and custom both matter. In some areas sellers commonly pay certain transfer taxes. In others the buyer does, or costs are split. Your purchase contract can negotiate these items, so ask your agent to tailor your offer to local norms.
What usually does not change much
- Lender fees follow the loan program and lender, not the state line. If you use the same lender on either side, the appraisal, underwriting, and credit report costs will likely be similar.
- Prepaids depend on each county’s property tax schedule and your insurance selection. That varies by county and timing more than by the state border itself.
Ballpark ranges and real‑world examples
Use these as general planning numbers. Exact figures come from your Loan Estimate and title quote.
- Total buyer closing costs: often about 2% to 5% of the price, per the CFPB’s guidance.
- Lender and third‑party loan fees: about $1,000 to $4,000, or roughly 0.5% to 1.5% of the loan.
- Title, settlement, and title insurance: about $500 to $2,500 or more depending on price and state rules.
- Recording and transfer charges: can range from modest recording‑only totals to higher amounts when a transfer tax applies.
- Prepaids and escrow deposits: commonly $500 to $4,000 or more, driven by timing of taxes and insurance.
Example 1, approximate: On a $200,000 home with 10% down, you might see total closing costs near 2% of price, about $4,000, if transfer taxes are modest and prepaids are low.
Example 2, approximate: On a $300,000 home with 20% down, closing costs could land near 3% of price, about $9,000, if you include standard lender fees, title, and a larger initial escrow deposit.
If you buy discount points to lower your interest rate, upfront costs rise. If you negotiate seller credits, your out‑of‑pocket can fall.
How to get accurate, side‑by‑side estimates
You can remove the guesswork by pairing a lender’s Loan Estimate with a local title quote on each side of the line.
Step 1: Ask your lender for sample Loan Estimates
After you apply, your lender must provide a Loan Estimate within three business days. It lays out estimated lender fees and third‑party charges. Review the CFPB’s guide to the Loan Estimate to understand each line.
- Request a sample for the same price point in Kentucky and in Tennessee so you can compare apples to apples.
- Ask the lender to show scenarios with and without discount points if you are rate‑shopping.
Step 2: Get title and settlement quotes in each state
Contact a title company that closes in Logan County, Kentucky and another that works in the Tennessee county where you may buy. Ask for an itemized title estimate that includes title insurance premiums, search and exam fees, settlement fees, recording costs, and estimated escrow deposits.
Step 3: Verify county recording and transfer items
Ask the title company to confirm the county’s current recording fees and any transfer or documentary taxes that apply for your price point. Since these are county‑specific and change over time, rely on the title company’s written estimate and the county clerk’s current schedule.
Step 4: Compare and ask targeted questions
- Which charges are fixed and which are estimates that can change at closing?
- Are any fees negotiable or commonly paid by the seller through concessions?
- What will my initial escrow deposit include and when is it collected?
- For remote or military closings, do you accept POA and what extra steps are needed?
- Who typically pays transfer taxes in this county, and can we negotiate that in the contract?
Step 5: Confirm with your Closing Disclosure
At least three business days before closing, you will receive a Closing Disclosure that shows final numbers. Review it against your Loan Estimate and title quote. The CFPB explains how to read the Closing Disclosure.
Local tips for Logan County and Fort Campbell buyers
- Get preapproved early, and request side‑by‑side Loan Estimates for properties in Logan County and just across the Tennessee state line.
- Ask local title companies for written, itemized estimates rather than round numbers.
- Confirm county recording and any transfer tax details for the exact county where you will record.
- Consider timing. Closing near a property tax due date or insurance renewal can increase prepaids and initial escrow deposits.
- If you live in one state and buy in the other, ask how tax billing cycles and escrow setup may differ by county.
Military and VA buyers: what to know
If you are using a VA loan, you will not pay private mortgage insurance, but most borrowers pay a VA funding fee that can be financed or paid at closing. Review the VA’s official overview of VA home loans and confirm program specifics with your lender. If you need a remote closing, ask early about POA requirements and any additional recording steps.
Make costs work for you
You have options to manage your total cash to close.
- Negotiate seller credits or concessions to offset some of your costs.
- Trade rate for cash. Paying points increases closing costs but lowers your rate, while a lender credit can reduce cash to close in exchange for a higher rate.
- Adjust timing to smooth prepaids. Closing earlier or later in the month can change prepaid interest. Your lender can show the impact.
- Compare title quotes. Title premiums may be similar, but settlement and recording estimates can differ by company and county.
Your next step
If you are weighing Logan County against nearby Tennessee neighborhoods, a clear comparison is the key to a confident offer. Pair a lender’s Loan Estimate with a local title quote on each side, verify county recording and transfer items, and use seller concessions to fine‑tune your cash to close. When you are ready to run the numbers and explore homes, connect with Kim Weyrauch for local, dual‑state guidance from preapproval to closing.
FAQs
What are typical buyer closing costs in Logan County and nearby Tennessee?
- Nationally, buyers often pay about 2% to 5% of the purchase price for closing costs, excluding the down payment, with exact totals set by lender fees, title charges, county recording or transfer items, and prepaids.
How do transfer taxes and recording fees differ between Tennessee and Kentucky?
- These charges are set by state and county, so the presence and amount of transfer or mortgage taxes and the per‑document recording fees can vary; verify with a local title estimate and the county clerk for the property’s county.
Do lender fees change across the state line?
- Lender fees are driven by your lender and loan program, not the state; if you use the same lender in both states, appraisal, underwriting, and credit costs are usually similar.
What is title insurance for buyers, and is it required?
- Lenders require a lender’s title policy, while an owner’s policy is optional but commonly purchased for protection against covered title defects; pricing depends on price and state rules.
How do VA loans affect closing costs near Fort Campbell?
- VA buyers typically avoid PMI but pay a VA funding fee that can be financed or paid at closing; ask your lender to include this in your Loan Estimate and to outline any POA requirements for remote closings.
Can the seller pay some of my closing costs in Kentucky or Tennessee?
- Yes, many items can be covered through seller concessions if allowed by your loan program; negotiate which fees or a total credit amount in your offer and confirm program limits with your lender.
