First Home Buying Costs in NC: Every Check, in Order

Your first home costs more than the down payment. That surprises almost every first-time buyer I meet. The good news is that first home buying costs come in a predictable order, and you can see most of them before you ever make an offer. Here’s the order in North Carolina.

1. When your offer is accepted

The due diligence fee goes straight to the seller. It pays the seller for taking the home off the market while you investigate it, and you usually don’t get it back if you walk away. I explain the details in The NC Due Diligence Fee and Period, Explained.

Earnest money goes to the escrow agent named in your contract, often the closing attorney. It’s held in trust, not paid to the seller.

Front of a small home, the kind of first home buying costs add up for

2. During the due diligence period

Home inspection. A general inspection of the structure and systems.
Wood-destroying insect inspection. Often called a termite inspection, and often required by lenders.
Other inspections as needed: a survey, a septic or well test, or a specialist if the inspector flags something.
The appraisal. Your lender orders it, and you usually pay for it, often up front.

3. First home buying costs at closing

Your down payment
The lender’s fees
The closing attorney’s fee (in North Carolina, an attorney handles your closing)
Title insurance: the lender’s policy your loan requires, and an owner’s policy that protects you
Prepaid items: property taxes, homeowners insurance and the deposit to start your escrow account
HOA transfer or setup fees, if the home is in an association

One cost you usually won’t see: the deed’s excise tax. Under N.C.G.S. 105-228.30, that tax is paid by the seller.

4. What comes back to you

When the sale closes, your due diligence fee and earnest money are normally credited toward what you owe. They weren’t extra costs; they were early payments. A thermostat analogy helps here: you’re not adding heat, you’re just turning it on sooner.

How to see your first home buying costs before you shop

Federal rules give you two documents that list these costs line by line (CFPB):

A Loan Estimate within three business days after you apply for a mortgage.
A Closing Disclosure at least three business days before closing.

Ask for a Loan Estimate early, before you fall in love with a house, so your first home buying costs hold no surprises. And check NC first-time homebuyer programs for help with the down payment.

Common questions about first home buying costs

Can the seller pay some of my closing costs? Often, yes. Seller-paid closing costs are negotiated in the offer, and your loan program sets a limit on how much the seller can contribute. In a market with more homes for sale, it’s a fair thing to ask for.

Do I need cash for the inspections even if I don’t buy? Yes. Inspection and appraisal fees are paid to the people who do the work, so you pay them whether or not the purchase closes. Budget for them before you make an offer.

What’s the biggest surprise for first-time buyers? The prepaid items. Starting an escrow account for taxes and insurance can add up, so look for that section on your Loan Estimate.

Plan your first purchase

If you’d like to walk through your numbers, email me to book a free 15-minute strategy call.

General information, not legal or lending advice.

Keep learning with the Professor

Mike Hall, The Triangle Real Estate Professor, is a broker with First Flight Realty in Cary, NC, and an NCREC-approved real estate instructor.

Your First Home, Cost by Cost: What NC Buyers Pay and When