Last reviewed and updated: October 19, 2026
The short answer: closing costs in Franklin fall into four groups: what the lender charges, title and settlement, Tennessee’s two recording taxes plus county recording fees, and prepaid items such as homeowners insurance and the first deposit into your escrow account. Every line shows up on your Loan Estimate within three business days of applying, and the final figures arrive on your Closing Disclosure three business days before you sign. The lender’s charges are the part that varies most, which is why I compare Loan Estimates from more than 30 lenders before you choose one.
Closing Costs in Franklin, Line by Line
Your Loan Estimate and Closing Disclosure group costs the same way, so once you know the lines you can compare offers side by side. The CFPB explains how to compare Loan Estimates.
| Cost | What it is | Who pays in Tennessee |
|---|---|---|
| Lender charges | Origination, underwriting and processing: the lender’s own fees for making the loan | You, unless the contract or a credit says otherwise |
| Discount points (optional) | Prepaid interest to lower the rate; see buying points vs a higher rate | You, or a negotiated seller credit |
| Appraisal, credit report, flood check | Services the lender requires and orders | You, unless the contract or a credit says otherwise |
| Lender’s title policy | Protects the lender’s lien; required with a mortgage | The buyer, by custom |
| Owner’s title policy | Protects your ownership; optional | Negotiable |
| Settlement or closing fee | The title company or closing attorney runs the closing, handles the funds and records the documents | You, unless the contract or a credit says otherwise |
| Tennessee transfer tax | 37 cents per $100 of the price, or the property’s value if higher | The buyer, by custom; negotiable |
| Tennessee mortgage tax | 11.5 cents per $100 of the loan above the first $2,000 | The borrower |
| Recording fees | The Register of Deeds records the deed and your deed of trust | You, unless the contract or a credit says otherwise |
| Homeowners insurance | The first year’s premium, usually paid at or before closing | You, unless the contract or a credit says otherwise |
| Escrow deposit | A starting balance for future property tax and insurance bills | You, unless the contract or a credit says otherwise |
| Prepaid interest | Interest from your closing day to the end of that month | You, unless the contract or a credit says otherwise |
| HOA charges | Transfer fees, capital contributions or prorated dues, if the home is in an HOA | Set by the HOA and the contract |
Sources for who pays: a title insurer’s guide to Tennessee customs and the Tennessee Department of Revenue.
Tennessee’s Two Taxes, by the Numbers
Tennessee charges two taxes when you buy with a mortgage. Both are paid to the county Register of Deeds when your documents are recorded (Tennessee Department of Revenue).
- Transfer tax: 37 cents per $100 of the price or the property’s value, whichever is greater. That’s $370 for every $100,000 of price. The buyer customarily pays it, though who pays can be negotiated.
- Mortgage tax: 11.5 cents per $100 of the loan amount, with the first $2,000 exempt. That’s $115 for every $100,000 borrowed, less $2.30 for the exempt $2,000. The borrower pays it.
Recording fees are set by state law: $10 per document, $5 for each page after the first two, and a $2 data processing fee per document (Tenn. Code § 8-21-1001, summarized by CTAS).
Property Taxes at Closing in Williamson County
Williamson County mails property tax bills in early October, and they’re due by February 28 of the next year, with penalty and interest of 1.5% a month after that (City of Brentwood). Because the bill comes after most of the year has passed, the seller usually credits you at closing for their share of the current year’s taxes, and you pay the full bill when it comes due, either yourself or through your escrow account.
The rate depends on the exact address. Williamson County’s rate applies everywhere, and the City of Franklin and the Franklin Special School District add their own if the home is inside them (Williamson County property tax rates). I set your escrow from the exact address, not a county average. To see what the tax adds to a monthly payment in a given town, try my mortgage calculator, which has the county, city and FSSD rates built in. For the four Franklin rates side by side, see buying a home in Franklin. If you’re moving here from out of state, my page on relocating to Franklin covers the rest of what changes.
Ways to Lower What You Bring to Closing
- Compare Loan Estimates line by line, starting with the lender’s charges. The same loan on the same day can be priced differently from one lender to the next.
- Ask for a seller credit. In a negotiated contract, the seller can pay some of your costs. Each loan program caps how much.
- Weigh a lender credit. A slightly higher rate can come with a credit toward your costs; compare it with paying points.
- Shop the services you’re allowed to shop, such as title and settlement. Your Loan Estimate lists which ones.
- Mind the closing date. Closing later in the month means less prepaid interest at closing. It doesn’t make the loan cheaper; it changes when that interest is paid.
When You’ll Know Your Exact Numbers
Your Loan Estimate arrives within three business days of applying. Your lender has to give you your Closing Disclosure three business days before your scheduled closing, with the final figures (CFPB). Compare it with your Loan Estimate and ask about anything that changed. I review both with you line by line before you sign.
Common Questions About Closing Costs in Franklin
The buyer pays most of the costs tied to the purchase and the loan: lender charges, title, the two state taxes and prepaid items. The purchase contract can shift some of them to the seller through a seller credit, within your loan program’s limits.
Yes. It’s 37 cents per $100 of the price or the property’s value, whichever is greater, or $370 for every $100,000. The buyer customarily pays it, though who pays can be negotiated.
It’s 11.5 cents per $100 of your loan amount above the first $2,000, or $115 for every $100,000 borrowed. You pay it when your deed of trust is recorded.
Yes, through a seller credit you negotiate in the contract. Every loan program caps how much the seller can pay, and the credit can’t be more than your actual costs. I’ll confirm the cap for your loan before you make an offer.
Your lender requires a lender’s policy, which protects the loan. The owner’s policy is optional and protects your ownership. In Tennessee, who pays for it is negotiable.
Bills are mailed in early October and are due by February 28 of the next year. Because the bill comes late in the year, the seller usually credits you at closing for their share of the current year’s taxes.
Get Your Own Numbers
I’ll build a closing cost estimate for the home you’re looking at, with the taxes for that exact address. When you’re ready, start your pre-approval.
If you want to walk through the numbers first, schedule a Mortgage Strategy Call.
