Ghtn2013, Home Buyer in Nashville, TN

If I purchase the property with cash at closing, what necessary steps do I need to do and fees I have to pay?

Asked by Ghtn2013, Nashville, TN Sat Apr 6, 2013

Trying to figure out difference with loan application. Thank you!

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If you are purchasing a home with cash there are still closing costs involved; however, not as many. In a cash closing in Tn you will still pay a deeds stamp tax (12.00), a transfer tax, and a closing attorney fee as well as homeowner's insurance (although not required to be part of the closing in a cash transaction. Your closing costs should be less than a $1000.00 depending on the price of the home. This calculation also assumes that seller is paying title insurance. On a closing involving a mortgage, you typically will see lender fees and escrow pre-paids. Pre-paids for taxes and insurance go into an escrow account, and the homeowner's insurance is required to be paid as part of the closing which is usually a year's premium. Additionally, TN taxes the mortgage which adds additional expense. As far as steps involved, your lender, realtor, and closing attorney should be able to walk you through step by step. If you have any questions or need a realtor, please call me. 615-289-6056/615-661-4400.
0 votes Thank Flag Link Sat Apr 6, 2013
In a cash closing you avoid bank fees, such as loan fees, credit report fees, etc. If buying with cash, you still have the recording fees of the Warranty Deed (this amount depends on your purchase price), you will have a title attorney fee that is typically $300 to $350, and you need to make sure you are getting title insurance, seller's typically pay this, but if they are not it is of the upmost importance that you get this. The other piece is the appraisal, make sure you are either using an agent that is experienced in giving values on properties or get an appraisal that will run you about $350. Also, make sure to have it checked to see if it is in a flood zone. (If you are flipping the property this could make a huge difference.)

I have worked with a lot of investors buying rentals and flipping properties. If you need any additional help feel free to call me at 615-828-4575 or email me at
0 votes Thank Flag Link Sat Apr 6, 2013
Stephanie was right on, the things we know for sure are your closing attorney settlement charges, transfer taxes, and recording fees, but there are several things that change with each deal. Things like Inspections you may want, if you are planning on getting an appraisal, and if the home has an HOA. If you are a buyer your realtors commission is paid by the seller so it would be in your best interest to consult with a realtor.

Ronnie Hill
Keller Williams Realty
0 votes Thank Flag Link Sat Apr 6, 2013
Transfer taxes and attorney closing fees. Is the seller paying for title insurance? Have you prepaid for inspections? Is there an HOA? Are you getting an appraisal?

Every deal is different.
0 votes Thank Flag Link Sat Apr 6, 2013
Investors will pay 25% down payment on investment loans. Approx. 3% closing clost, but talk to you lender.
Cash, not much closing fees at all, you can also ask the seller to pay, title, cc prepaids.
Do you have a realtor? If not, give me a call.
Sharon 615-289-6502
0 votes Thank Flag Link Sat Apr 6, 2013
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