Closing Costs for New Construction in Hendersonville

Are you wondering how much cash you really need to close on a new construction home in Hendersonville? If you are buying your first home or relocating to Sumner County, it is normal to feel unsure about what is due at the closing table. The good news is you can estimate it with confidence once you know the line items, who usually pays, and what local builders often cover. In this guide, you will learn how closing costs work on both spec and semi-custom homes, what is unique to Hendersonville, and how to plan your cash to close. Let’s dive in.

Closing costs, in plain English

Closing costs are the fees and prepaids required to complete your purchase and set up your mortgage. They are separate from your down payment. Typical costs include lender fees, title work, recording charges, property taxes and insurance prepaids, and escrow reserves. The exact amount depends on your loan type, lender, builder incentives, and local fees in Sumner County.

For many conventional purchases, closing costs often total about 2% to 5% of the purchase price. Your cash to close will also include prepaids and initial escrow deposits, which can add several thousand dollars. Some items can be covered by builder credits or lender credits, but you should plan to bring funds for your down payment and most prepaids.

Typical costs on Hendersonville new builds

Below are the most common buyer line items on new construction purchases. Ranges reflect national norms and can vary. Always verify with your lender and title company for Sumner County specifics.

Loan fees and lender charges

• Origination or underwriting fee. Often 0.5% to 1.5% of the loan amount or a flat fee. Sometimes offset by lender or builder credits.
• Rate lock fee. May apply if you lock for a longer period; sometimes built into your rate.
• Credit report and verification fees. Small flat fees.
• Appraisal fee. Commonly $400 to $750 depending on home size and county.
• Flood certification and other checks. Generally small flat fees.

You usually pay these as the buyer, though builders sometimes offer credits toward them.

Title, escrow, and settlement

• Title search and title insurance. Lender’s policy is required with a mortgage. An owner’s policy is optional but recommended. Premiums are one-time and based on price and Tennessee rate schedules.
• Settlement or closing fee. A flat fee to the title or settlement agent for conducting the closing.

Builders sometimes cover certain title or recording items as part of incentives, but buyers often elect and pay for the owner’s policy.

Recording and government fees

• Recording fees for the deed and mortgage. Assessed by Sumner County at closing.
• Any local documentary or filing fees. Amounts vary; confirm with the Register of Deeds.

Responsibility can be negotiable in new construction. Ask the builder which specific items they will pay or credit.

Prepaids and prorations

• Property taxes. Prorated based on your closing date and the county’s tax calendar. The seller or builder usually credits you for their period of ownership.
• Homeowner’s insurance. Many lenders require you to pay the first year’s premium at closing.
• Prepaid mortgage interest. Covers the period from closing to your first payment.
• HOA items. One-time transfer fees and initial dues may apply if the community has an HOA.

These items can add up quickly and often account for a large share of cash to close.

Escrow reserves

• Initial escrow deposits for taxes and insurance. Many lenders collect 2 to 6 months of payments to seed your escrow account.

This can add several thousand dollars depending on tax rates, insurance cost, and your closing date.

Inspections and surveys

• Independent inspections. Even on new builds, buyers often hire inspectors for pre-drywall and final checks. Typical range is $300 to $800, depending on scope.
• Survey. Your lender or title company may require a survey. Cost varies by lot and provider.

You usually pay for your own inspections. Some builders allow third-party inspectors during construction.

Utilities, permits, and impact fees

• Utility tap or impact fees. These may apply for new connections to water and sewer. In some communities the builder pays them. In others they can be billed to the buyer per contract.
• Permit and inspection fees. Typically paid by the builder, but confirm in writing.

Warranties and upgrades

• Builder warranty. Often included. Confirm coverage and whether any fee is collected at closing.
• Upgrades and options. Deposits may be due during construction. Any remaining balance is commonly due at closing.

Agent commissions

• In most new-home deals, the seller or builder pays real estate commissions. Buyer agent compensation is not a cash-to-close item for you.

Spec vs. semi-custom: how costs and incentives differ

Spec homes are move-in ready or near completion. Builders often market set incentives on these homes, which can include closing cost credits, title fee coverage, or a rate buydown. Because timing is predictable, lenders can lock rates with more confidence and the builder may be more flexible with concessions to move inventory.

Semi-custom or build-to-order homes may offer fewer direct closing-cost concessions. You might receive allowances toward design center upgrades or appliances instead. Closing-date timing can be longer, which can affect your rate lock and prepaids. You will still want to confirm whether the builder offers a credit if you use their preferred lender and title company.

When you negotiate, get clarity in writing. Ask the builder to list which fees they will pay, the dollar limits, and whether the offer requires using a preferred lender or title company. Also confirm how credits will be applied, and whether they can be used for a rate buydown, closing costs, or upgrades.

Local checks in Hendersonville and Sumner County

Sumner County and the City of Hendersonville have specific processes that affect closing costs and timing. Early in your build, confirm the following:

• Sumner County Register of Deeds. Ask for the current recording fee schedule and document requirements for deeds and mortgages.
• Sumner County Assessor of Property or County Trustee. Verify the property tax calendar, rates, and how proration will work for your closing month.
• City of Hendersonville utilities and permitting. Confirm whether water and sewer tap or connection fees apply for your subdivision and who pays them.
• Planning and building departments. Check final inspection and occupancy sign-off requirements, and understand whether the developer or builder is responsible for any remaining infrastructure items.
• Title and closing practices. Tennessee closings may be handled by a title company or a settlement agent. Some builders require a preferred provider, while others allow buyer choice. Title insurance premiums follow Tennessee schedules, so request a local quote.

How much cash to bring: a simple example

Use this worksheet to frame your budget. Replace the example amounts with your Loan Estimate and a title quote for your Hendersonville address.

• Purchase price: $400,000
• Down payment: 3% conventional = $12,000 (FHA 3.5% = $14,000; VA = $0)
• Estimated closing costs (lender and title fees, appraisal, recording): 2% to 5% = $8,000 to $20,000
• Prepaids (first-year insurance, prorated taxes, prepaid interest): $1,500 to $4,500
• Initial escrow/impounds (2 to 6 months of taxes and insurance): $2,000 to $6,000
• HOA transfer and first dues (if applicable): $0 to $1,200
• Sample builder credit: $5,000 applied to allowable costs

Illustration: $12,000 + $12,000 + $3,000 + $4,000 = $31,000 before credits. With a $5,000 builder credit, your net cash to close would be about $26,000. Your actual numbers will depend on your loan program, rate lock, closing month, and the specific builder contract.

Step-by-step plan to avoid surprises

• Get pre-approved and request a detailed Loan Estimate that breaks out closing costs and prepaids.
• Ask a Sumner County title company for an itemized quote for lender and owner title policies, settlement fees, and recording.
• Have the builder confirm in writing which fees they will pay, the dollar cap, and whether a preferred lender or title is required.
• Verify HOA transfer fees, first dues, and any special assessments for the community.
• Confirm property tax timing with the Assessor or Trustee and how taxes will be prorated.
• Budget for third-party inspections during construction and a final inspection before closing.
• Ask your lender how many months of taxes and insurance they will collect for escrow.
• If you plan to use down payment assistance, confirm that it works with the builder’s incentive rules and your loan program.

Common pitfalls to avoid

• Underestimating prepaids and escrow reserves. These can be significant and vary by closing month.
• Assuming all builder incentives apply to every fee. Many credits have caps or are limited to preferred lenders.
• Overlooking HOA fees or community transfer charges. These are common in new subdivisions and can show up at closing.
• Skipping independent inspections. Even new homes can have items to address before closing.
• Waiting to request written confirmations. Verbal promises about fees or credits should be documented in your contract addenda.

Work with a local advocate

New construction is exciting, but the details matter. With the right guidance, you can secure fair incentives, set the right rate lock strategy, and avoid last-minute cash surprises. If you want a hands-on partner who understands builder processes and Sumner County’s local steps, connect with Jacqueline Brown. She offers construction-savvy buyer representation, remote-friendly build updates, and clear, proactive communication from contract to closing.

FAQs

What are typical closing costs for new construction in Hendersonville?

• For many conventional loans, buyer closing costs often total about 2% to 5% of the purchase price, plus prepaids and initial escrow deposits that can add several thousand dollars.

Who usually pays title insurance and settlement fees in Tennessee new builds?

• Lenders require a lender’s title policy that buyers typically pay, an owner’s policy is optional but recommended, and settlement fee responsibility varies by contract and builder incentives.

Do builders in Hendersonville cover all buyer closing costs?

• Builders often offer closing cost assistance, rate buydowns, or title/recording coverage up to a stated dollar amount, but they rarely cover every item in full.

Are HOA fees due at closing on new construction?

• Many new communities charge a one-time transfer fee and collect initial dues at closing, so confirm the amounts with the builder and HOA documents.

Can I roll my closing costs into the mortgage on a new build?

• Some lenders allow financing certain costs within loan-to-value limits or offer lender credits in exchange for a higher rate, but many prepaids must be paid at closing.

How are property taxes handled at closing in Sumner County?

• Taxes are typically prorated based on your closing date, with the seller or builder crediting their share and your lender often collecting several months for escrow.