NC vs SC Closing Costs Along The I‑77 Corridor

Trying to decide which side of the I-77 border will keep more money in your pocket on closing day? If you are comparing Fort Mill in York County to nearby South Charlotte in Mecklenburg County, you are not alone. Many buyers ask whether North Carolina or South Carolina comes out cheaper. In this guide, you will see what closing costs include, how NC and SC differ around I-77, and simple scenarios that show how much to budget. Let’s dive in.

What closing costs include

Closing costs fall into five buckets: lender charges, third-party settlement fees, government and recording costs, prepaids and escrows, and negotiated credits. A helpful baseline is to plan for roughly 2 to 5 percent of the purchase price for buyer closing costs. Your exact number depends on the loan type, local fees, and timing of taxes.

Lender and loan costs

Your lender will outline these on a Loan Estimate. The Consumer Financial Protection Bureau explains how to read this form in plain language in its guide to the Loan Estimate and what it includes.

Common items include:

• Origination or processing fees, either a flat fee or a percentage of the loan.
• Optional discount points if you choose to buy down your interest rate.
• Underwriting, application, credit report, and appraisal. In the Charlotte region, a standard single-family home appraisal often runs about 400 to 700 dollars depending on size and complexity.
• Upfront mortgage insurance premiums for certain programs, such as FHA or VA, if applicable.

Third-party settlement costs

These fees go to the title company or closing attorney and other vendors. Expect:

• Title search and title insurance. Your lender requires a lender’s policy. An owner’s policy is optional for you but commonly purchased. Who pays for an owner’s policy varies by local custom and negotiation.
• Closing, settlement, or attorney fees for conducting the closing.
• Inspections. Buyers typically pay for a general home inspection and may add termite or specialized inspections.

Government and recording fees

These are small compared with the purchase price but they add up and differ by county:

• Recording fees to record the deed and mortgage. You can review county processes with the York County Register of Deeds and the Mecklenburg County Register of Deeds fee schedule.
• Transfer taxes or documentary stamps if applicable in that jurisdiction. Formulas vary and can shift costs by a few hundred dollars or more depending on price and who customarily pays.
• Property tax prorations. If the seller already paid this year’s bill, you will reimburse your share at closing. This is a timing adjustment, not an extra tax.

Prepaids and escrows

Prepaids are not fees. They are funds collected in advance:

• First year of homeowners insurance and any property taxes due soon after closing.
• Initial escrow funding for your lender to set up your impound account, commonly 2 to 6 months of taxes and insurance depending on program and lender policy.
• Any HOA transfer or initiation fees and your first month’s HOA dues if applicable.

Negotiated items

Seller concessions can offset some of your costs. In many Southern markets, sellers often pay for an owner’s title policy, but this is local and negotiable. Credits for repairs can also reduce your cash to close.

NC vs SC: what differs most

Here are the factors that most often create differences for Fort Mill and South Charlotte buyers.

Property taxes and timing

Effective tax rates and billing cycles vary by county. Those differences affect your monthly payment and the escrow amount your lender collects at closing. For local reference, review resources from the York County Treasurer and the Mecklenburg County Assessor’s Office. If you close soon after a bill is issued and the seller has paid it, you will reimburse your prorated share on the settlement statement, which can increase cash needed at closing.

Transfer taxes and recording fees

Recording fees exist in both states. Some counties also apply documentary or excise taxes tied to the price. The combination can create a few hundred to over one thousand dollars of difference depending on the home price and who pays specific items. You can review processes and fee schedules with the York County Register of Deeds and the Mecklenburg County Register of Deeds fee page.

Title and closing practice

In the Carolinas, both title companies and closing attorneys handle settlements. Practices vary by firm and neighborhood. Lenders require a lender’s title policy paid by the buyer. An owner’s policy protects your equity and is commonly purchased. In many Southern markets it is customary for the seller to pay for the owner’s policy, however this is negotiable. Always confirm the current custom in your specific neighborhood.

HOA fees in planned communities

Fort Mill features many master-planned communities with HOAs, and South Charlotte has newer subdivisions with HOAs too. Expect possible HOA transfer or initiation fees at closing and plan for your first month’s dues. These line items commonly range from a couple hundred dollars to around one thousand dollars depending on the community.

Assistance programs that offset costs

Both states offer programs that can help eligible buyers with down payment and closing costs:

• North Carolina buyers can explore programs via the North Carolina Housing Finance Agency.
• South Carolina buyers can review options through SC Housing’s homebuyer programs.

Program availability, income limits, and terms change, so check details as you plan.

How much to budget near I-77

A helpful rule of thumb is 2 to 5 percent of the purchase price for buyer closing costs. The ranges below use local realities for Fort Mill and South Charlotte and illustrate the size of each bucket.

Example: 350,000 home

• Total estimate: about 7,000 to 17,500.
• Lender fees, appraisal, and credit report: roughly 2,000 to 6,000.
• Title, closing attorney or settlement fee, and the lender’s title policy: roughly 1,500 to 3,500.
• Prepaids and initial escrow for taxes and insurance: roughly 1,500 to 4,000.
• Recording, transfer, and other government fees plus any HOA transfer charges: roughly 200 to 1,000.

A shift in who pays the owner’s title policy, the local transfer tax formula, or the tax proration can move your cash to close by several hundred to a few thousand dollars between counties.

Example: 500,000 home

• Total estimate: about 10,000 to 25,000.
• Lender and title costs may scale up slightly with price, and title premiums often increase with the purchase price.

These examples are not quotes. For exact numbers, ask for a Loan Estimate and a title fee quote for your specific address and loan terms.

What causes a 1,000 to 5,000 swing

Small differences add up. The most common drivers between the NC and SC sides of I-77 are:

• Owner’s title insurance. If the seller pays in your target neighborhood, it can reduce your cash by about 500 to 2,000.
• Transfer or documentary taxes and recording fees. Depending on formulas and who pays, these can add a few hundred to over one thousand dollars.
• Initial escrow funding. Lender requirements and the month you close determine how many months of taxes and insurance your lender collects upfront.
• Property tax season. If you close right after a bill is issued and the seller already paid, your prorated reimbursement increases cash needed.
• HOA transfer and initiation charges. Communities with higher transfer fees can add a few hundred dollars.

Step-by-step comparison checklist

Use this checklist to compare Fort Mill and South Charlotte side by side.

• Ask two lenders for Loan Estimates using the same price, loan program, and closing date assumptions. The CFPB explains how to read the Closing Disclosure you will see three days before closing.
• Call a York County title company and a Mecklenburg County title company or closing attorney. Ask who typically pays the owner’s title policy, the estimated title and recording fees for your price point, and the title search timeline.
• Review county pages for recording processes and fees. Start with the York County Register of Deeds and the Mecklenburg County Register of Deeds fee schedule.
• Check tax timing and rates for your short list. Use the York County Treasurer and the Mecklenburg County Assessor’s Office to understand billing cycles and estimates.
• Add HOA transfer or initiation fees and first month’s dues for any HOA community you are considering.
• Explore eligibility for assistance through the NCHFA homebuyer programs and SC Housing homebuyer programs.

Fort Mill or South Charlotte: which fits your budget

There is no universal rule that North Carolina or South Carolina is always cheaper for buyers along I-77. The right answer for you depends on local taxes, HOA fees, the month you close, whether the seller pays the owner’s title policy, and your lender’s escrow requirements. The best path is to compare total monthly cost and cash to close for two or three addresses you like on each side of the border.

If you want a personalized side-by-side, get a no-cost closing cost estimate tailored to your price, loan program, and timing. With dual-state expertise across York County and Mecklenburg County, Jonathan Winn can walk you through the line items and introduce a trusted local lender so you can compare your options with clarity.

FAQs

Are closing costs usually higher in NC or SC near I-77?

• Neither side is always higher; differences in taxes, transfer and recording fees, owner’s title policy custom, and lender escrow funding often total a few hundred to a few thousand dollars.

Who typically pays for an owner’s title policy in Fort Mill vs South Charlotte?

• It is local custom and negotiable; in many Southern markets sellers often pay, but you should verify the current practice for your specific neighborhood and contract.

Do lenders require escrow accounts more in one state than the other?

• Escrow requirements are lender and program driven, not state specific, so confirm with your lender whether escrows are required and how many months will be collected.

Can assistance programs help cover closing costs in this area?

• Yes, both the NCHFA homebuyer programs and SC Housing programs may help eligible buyers with down payment and closing costs.

What should I compare when choosing Fort Mill or South Charlotte?

• Compare total monthly housing cost, expected cash to close, HOA fees, commute considerations, and whether seller concessions are common in your micro-market, then request quotes from a lender and title company for each property you love.