Buying a home involves more than saving for a down payment. From upfront fees to last-minute paperwork, a few costs and deadlines can catch buyers off guard.
Closing typically takes place about 30 to 45 days after an offer is accepted, though timing varies. Here are some common surprises to prepare for.
When Your Offer Is Accepted: Fees, Deposits and Inspections
The surprise: You may need to pay several expenses before closing day. In North Carolina, buyers commonly pay a due diligence fee directly to the seller. This fee is generally nonrefundable if you decide not to proceed with the purchase, subject to the contract's terms. Buyers may also pay an earnest money deposit, which is typically held by an escrow agent, and home inspection fees. Earnest money may be refundable depending on the contract and how the transaction ends.
How to prepare: Understand your contract's payment deadlines and set aside money for deposits and inspections before making an offer.
Days 1–30: Closing Costs Add Up
The surprise: Your down payment isn't your only major expense. Closing costs often include loan origination fees, appraisal and title-related fees, recording fees, prepaid homeowners insurance and property taxes. A common estimate is 2% to 5% of the purchase price, but actual costs vary.
How to prepare: Review your Loan Estimate with your lender to understand what each fee covers and how much you’ll need to budget for closing costs in addition to your down payment.
Before Closing: Protect Your Mortgage Approval
The surprise: Conditional loan approval doesn't mean your mortgage is finalized. Lenders may verify your credit, income and employment again before closing. Taking on new debt, financing furniture or changing jobs could affect your loan approval.
How to prepare: Keep your finances stable, avoid new credit or major purchases and respond promptly to your lender's requests.
Three Business Days Before Closing: Review Your Closing Disclosure
The surprise: Lenders are required to provide a Closing Disclosure at least three business days before closing. It outlines your final loan terms, closing costs and cash to close. Certain significant loan changes can require a new three-business-day waiting period, potentially delaying closing.
How to prepare: Review the disclosure as soon as you receive it and contact your lender about any unexpected charges or changes.
One or Two Days Before Closing: Confirm Your Cash to Close
The surprise: The final amount you owe may differ from earlier estimates because of adjustments for property taxes, insurance, deposits and other costs. You may also need to arrange a wire transfer or other approved payment method.
How to prepare: Confirm the final amount and payment instructions with your closing attorney. Independently verify wire instructions by calling a trusted phone number to help protect against fraud.
Closing Day: Signing Doesn't Always Mean Instant Access
The surprise: Signing your paperwork doesn’t mean you can get the keys right away. Your closing attorney must confirm that funds have been received and arrange for the deed to be recorded with the county Register of Deeds. These steps take time, and the transaction isn’t complete until the required closing steps are finished.
How to prepare: Ask your closing attorney when you can expect to receive the keys and leave some flexibility in your moving plans in case of delays.
After Closing: When Is Your First Mortgage Payment Due?
The surprise: Your first mortgage payment usually isn't due the month immediately after closing. Mortgage interest is generally paid in arrears, and you typically pay interest from your closing date through the end of that month at closing.
For example, if you close on October 20, your first regular mortgage payment would typically be due December 1, covering November's interest.
How to prepare: Check your closing documents for your first payment date and plan for ongoing expenses such as utilities, insurance and home maintenance.
Be Ready Before Closing Day
Closing is the final step before your new home becomes yours. Knowing what to expect, reviewing your documents and confirming your costs can help you navigate the process and avoid common last-minute issues.