Are you trying to figure out how much cash you’ll need to close on a home in Knoxville’s 37938 (Powell) area? You’re not alone. Closing costs can feel confusing, especially if you’re buying for the first time or relocating to Knox County. In this guide, you’ll learn what Tennessee closing costs include, how much to budget in 37938, who typically pays what locally, and smart ways to reduce your out-of-pocket. You’ll also get a simple worksheet and real examples to help you plan with confidence. Let’s dive in.
Closing costs overview
Closing costs are the one-time fees and prepayments you pay at closing in addition to your down payment. They cover lender charges, third-party services (like appraisal, title work, and inspections), recording fees, and prepaid items such as insurance, property taxes, and daily interest.
As a planning rule of thumb, buyers in Tennessee often budget 2% to 5% of the purchase price for closing costs (not including the down payment). Your exact total depends on your loan type, selected lender, negotiated concessions, and local fees in Knox County.
Tennessee closings are commonly handled by title companies or closing attorneys. Local customs in the Knoxville market influence who pays certain items. You can negotiate many fees and credits with your lender and the seller.
Budget guide for 37938
Use the 2% to 5% range to sketch your budget, then refine it with actual quotes.
- Example at $300,000: estimated buyer closing costs $6,000 to $15,000.
- Example at $450,000: estimated buyer closing costs $9,000 to $22,500.
These planning ranges cover lender fees, title and settlement charges, appraisal and inspections, prepaid insurance and taxes, escrows, and recording fees. Your loan type and negotiated credits can shift your final number.
Who pays what in Knoxville
Local practices can vary by transaction and market conditions, but here are common patterns in Tennessee and Knox County:
- Owner’s title insurance: it is often customary for the seller to pay for the owner’s policy. This is not universal and can be negotiated. Confirm the current norm with your agent and title company.
- Lender’s title policy and mortgage-related fees: the buyer typically pays these items, along with appraisal, origination, prepaids, and escrow setup.
- Recording and transfer fees: deed and mortgage recording fees are usually modest and may be split or assigned by local practice. Confirm current Knox County procedures and fee schedules.
- Property tax prorations: taxes are prorated at closing. You pay your share for days you will own the home after closing.
If you want the seller to cover specific buyer costs, ask your agent to include a clear seller-paid closing cost request in your offer.
Line-by-line cost breakdown
Below are typical items you may see at closing in 37938. Your Loan Estimate and Closing Disclosure will show the exact amounts.
Lender origination and underwriting
- What it covers: lender processing and underwriting of your loan.
- Typical range: 0.5% to 1.5% of the loan amount (sometimes a flat fee).
- Tips: shop multiple lenders and compare total costs, not just the rate. You can sometimes offset these with lender credits or seller concessions.
Appraisal
- What it covers: a professional valuation required by most lenders.
- Typical range in suburban Knoxville: $350 to $800. Complex properties can cost more.
- Note: often paid upfront when ordered, then credited on your closing statement.
Home inspections
- General home inspection: $300 to $600.
- Radon test: $100 to $200.
- Termite/WDI inspection: $75 to $300.
- Sewer scope: $150 to $400.
- Tip: if inspections uncover issues, you can request repairs or a seller credit to reduce cash at closing.
Title search and title insurance
- What it covers: title search, settlement services, and title insurance policies. The lender’s policy protects the lender; the owner’s policy protects your title.
- Typical range: several hundred to a few thousand dollars, depending on price. As a planning placeholder, estimate 0.2% to 0.6% of the purchase price for title and the lender’s policy. The owner’s policy is often a seller-paid item in Tennessee, but this is negotiable.
Recording and transfer fees
- What it covers: county charges to record the deed and mortgage. Some counties also charge transfer or conveyance taxes.
- Typical range: often tens to a few hundred dollars in total, but you should confirm current Knox County fees.
- Who pays: practices vary by market. Buyers often pay mortgage recording; deed transfer can be seller or split by custom and negotiation.
Prepaid interest
- What it covers: interest from your closing date to the first day of your first full month.
- Typical range: usually a few hundred dollars, based on loan size, rate, and the day you close.
- Tip: closing late in the month can reduce this amount.
Property taxes and assessments
- What it covers: prorated property taxes based on your closing date and any reimbursements to the seller.
- Typical: varies by local tax rate and timing.
- Who pays: you pay your prorated share at closing.
Homeowner’s insurance and HOA
- What it covers: first-year homeowner’s insurance (often required to be paid at closing) and any HOA transfer or initiation fees where applicable.
- Typical: varies by property and carrier.
Escrow reserves
- What it covers: the initial deposit for your escrow account so the lender can pay taxes and insurance when due.
- Typical: 2 to 3 months of property taxes and insurance.
Smaller administrative fees
- What it covers: credit report, flood certification, courier or wire fees.
- Typical: $25 to $200 total.
Survey (if required)
- What it covers: boundary survey, sometimes required to clear title exceptions.
- Typical: $300 to $900, depending on lot size and complexity.
FHA and VA program fees
- FHA: upfront mortgage insurance premium (UFMIP) is 1.75% of the loan amount. It is commonly financed into the loan.
- VA: a funding fee may apply based on service history and down payment. It can often be financed. Confirm specifics with your VA lender.
Ways to reduce out-of-pocket
You have options to lower your cash to close, depending on the market and your loan program.
Seller concessions
- FHA: seller concessions up to 6% of the lesser of the purchase price or appraised value.
- Conventional (Fannie Mae and Freddie Mac): typical limits depend on your down payment. Common guidelines are 3% if your down payment is under 10%, 6% if 10% to 25%, and 9% if 25% or more.
- VA: allows seller concessions for certain costs, including some prepaid items and the funding fee, within program rules.
- Note: seller willingness varies with market conditions. In a buyer-friendly market, concessions are more common.
Lender credits
- You can take a higher interest rate in exchange for a lender credit that covers some closing costs.
- This can reduce cash needed now but raises long-term interest expense. Ask your lender to show break-even comparisons.
Financing certain fees
- FHA allows you to finance the upfront mortgage insurance premium into the loan.
- Other closing costs are typically paid at closing or covered by concessions or credits.
Assistance programs
- Tennessee Housing Development Agency (THDA) offers first-time homebuyer loans and down payment or closing cost assistance for eligible buyers. Program terms and income limits change. Check current offerings and ask about availability in Knox County.
- Local nonprofits or county agencies may also offer grants or loans. Reach out to Knox County community development or housing counseling resources to learn what is available now.
Timing and negotiation tactics
- Ask for seller-paid closing costs in your offer using the contract’s standard language.
- When repairs are needed, consider negotiating a closing cost credit instead of a price reduction to keep more cash in hand.
- Close near the end of the month to shrink prepaid interest.
- Compare multiple lenders and title companies early. Use itemized quotes and Loan Estimates to identify savings.
Quick worksheet for 37938 buyers
Use this checklist to estimate your total cash to close. Replace placeholders with your own numbers as you receive quotes.
- Purchase price: __________
- Down payment percent and amount: __________
- Estimated loan amount: __________
- Estimated buyer closing costs (sum of the following):
- Lender origination fee (0.5% to 1.5% of loan): __________
- Appraisal ($350 to $800): __________
- Home inspections ($300 to $800 total, plus any specialty tests): __________
- Title search and lender’s policy (estimate 0.2% to 0.6% of price): __________
- Owner’s title policy (if buyer pays; often seller pays in TN): __________
- Survey ($300 to $900 if needed): __________
- Recording and county fees ($50 to $500 typical placeholder): __________
- First-year homeowner’s insurance (quote from insurer): __________
- Escrow reserves (2 to 3 months of taxes and insurance): __________
- Prorated property taxes (based on closing date): __________
- FHA/VA upfront fees if applicable (FHA UFMIP 1.75% of loan): __________
- Misc admin fees (credit report, flood cert, courier) ($100 to $400): __________
- Subtotal closing costs: __________
- Less seller concessions (if any): __________
- Less lender credits (if any): __________
- Estimated total cash to close (down payment + closing costs − concessions − credits): __________
Sample scenarios
- Entry-level example at $250,000: 2% to 5% closing costs equals $5,000 to $12,500.
- Mid-range example at $300,000: 2% to 5% closing costs equals $6,000 to $15,000.
- Higher example at $450,000: 2% to 5% closing costs equals $9,000 to $22,500.
Use these ranges until you receive your Loan Estimate and title quote.
Your local action plan
Follow these steps to lock in accurate numbers for a 37938 purchase:
- Ask your lender for a Loan Estimate within 3 business days of your application. Compare origination charges, points, and projected prepaids.
- Call a Knoxville title company or closing attorney for a title quote. Confirm who is paying the owner’s policy in your contract.
- Confirm current recording fees with Knox County offices and ask your lender which party typically pays which document fees for your transaction.
- Check THDA for active down payment and closing cost assistance programs and eligibility in Knox County.
- Time your closing date to manage prepaid interest, and talk with your agent about the best way to request seller-paid costs or repair credits.
- Review your Closing Disclosure at least 3 business days before closing. This is the authoritative, final list of what you will owe.
Work with a local guide
Strategic planning can save you thousands at the closing table. A seasoned local team can help you structure your offer, compare lender quotes, and negotiate credits that match your goals. If you are relocating to Powell or greater Knoxville, you will also benefit from neighborhood insight and a smooth step-by-step process.
If you want a clear plan for closing costs and a confident path to keys-in-hand, let’s talk. Connect with Shannon Foster-Boline with Realty Executives Associates for local guidance tailored to your budget and timeline.
FAQs
How much are buyer closing costs in 37938 (Knox County)?
- Plan for 2% to 5% of the purchase price (not including your down payment). For a $300,000 home, that is about $6,000 to $15,000.
Who pays for title insurance in Tennessee home sales?
- It is often customary for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy. This is negotiable and can vary by transaction.
What prepaid items add to cash due at closing?
- First-year homeowner’s insurance, initial escrow deposits for taxes and insurance, prorated property taxes, and prepaid interest from the closing date to your first payment.
How can I lower my out-of-pocket closing costs?
- Ask for seller concessions (subject to loan limits), consider lender credits, time closing near month-end to reduce prepaid interest, and negotiate repair credits instead of price cuts.
What are the seller concession limits for common loan types?
- FHA typically allows up to 6%. Conventional loans commonly allow 3% with under 10% down, 6% with 10% to 25% down, and 9% with 25% or more. VA allows concessions within program rules.
Are there Tennessee programs that help with closing costs?
- THDA offers loans and assistance that can help eligible buyers with down payment and closing costs. Local nonprofits or county programs may also offer help; check current availability.
Which documents show my exact closing costs and when will I get them?
- Your Loan Estimate arrives within 3 business days of your loan application. Your Closing Disclosure arrives at least 3 business days before closing and lists the final amounts.
