Are you hearing different numbers for “cash to close” and wondering what is real for Houma? You are not alone. Closing costs can feel confusing, especially with Louisiana’s unique customs and coastal insurance needs. This guide lays out what you will likely pay in Terrebonne Parish, who usually pays what, and how to get firm estimates before you write an offer. Let’s dive in.
What closing costs include
Closing costs are the non–purchase-price amounts you pay at the closing table or roll into your loan. They fall into a few buckets:
- Lender fees and the appraisal
- Title and settlement services, including title insurance
- Government recording and transfer charges
- Prepaid items and escrow reserves for taxes and insurance
- Inspections, a survey if needed, and small admin fees
Most buyers should plan for a total around 2% to 5% of the purchase price if you are paying your own share. Your final number depends on your loan, seller concessions, and local fees.
Who pays what in Louisiana
Louisiana has customs that may differ from other states. These are common in our area, but they are always negotiable and can vary by parish and by deal.
Title insurance customs
- Owner’s title policy: In many Louisiana transactions, the seller often pays for the owner’s title insurance policy. This protects your ownership. It is negotiable, and practices vary by parish. Confirm locally for your specific property.
- Lender’s title policy: If you have a mortgage, your lender will require a lender’s policy. The buyer typically pays this.
Transfer and recording costs
- Recording fees: The parish clerk of court charges to record the deed and mortgage. These are usually modest but vary by document and number of pages.
- Documentary or transfer taxes: Some transfer-related taxes are often paid by the seller in Louisiana. Check local custom and the current rules before you make an offer.
Buyer-paid items
- Lender-related fees, the appraisal, and credit report costs are normally paid by the buyer.
- Prepaid interest, property tax and insurance escrows, and the first year of homeowners insurance are buyer costs when required by the lender.
- Inspections and a survey, when needed, are usually buyer expenses.
Typical ranges for Houma buyers
Use these ranges to budget. Your exact numbers will come from your lender, your chosen title company, and parish offices.
Lender fees and appraisal
- Origination and processing: About $300 to $1,500 or 0.25% to 1% of the loan if charged as points.
- Underwriting and credit: Often $325 to $975 combined.
- Appraisal: Commonly $400 to $800 in our area, higher for complex or unique coastal properties.
Title and settlement
- Title search, exam, and closing fee: Often $300 to $900.
- Lender’s title policy: Required with a mortgage and paid by the buyer. Premium is based on loan amount.
- Owner’s title policy: Often paid by the seller in many Louisiana deals, but negotiable. Premium is based on purchase price.
Government and recording
- Recording the deed and mortgage: Usually tens to a few hundred dollars, depending on pages and documents.
- Transfer or documentary taxes: Practices vary. Many Louisiana sellers pay related taxes, but confirm for Terrebonne Parish.
Prepaids and escrow reserves
- Prepaid interest: Covers interest from closing to your first payment date.
- Homeowners insurance: First-year premium is often due at closing if escrowed.
- Flood insurance: If the home is in a Special Flood Hazard Area, your lender will require flood insurance. The first year and reserves can be a larger cost in coastal Houma.
- Property tax reserves: Lenders often collect 2 to 12 months of taxes and insurance to start the escrow account.
Inspections, survey, and extras
- Home inspection: About $300 to $600 for a typical single-family home.
- Termite inspection: Common in Louisiana at about $50 to $150.
- Survey: If needed and not available, plan on $300 to $1,000 or more, depending on the lot.
- Miscellaneous: Courier, notary, wire, and document prep can total $25 to $200, with attorney fees varying when used.
Flood insurance in Terrebonne Parish
Flood risk is a major cost driver here. Many Houma homes sit in FEMA-designated flood zones where lenders require flood insurance. That can affect two things at closing:
- The first-year flood premium if you escrow
- The flood portion of your starting escrow reserves
Premiums vary widely based on flood zone, elevation, and coverage. Get a quote early, especially if you are shopping near bayous or in low-lying areas.
Get accurate estimates before you offer
A few simple steps can turn ballpark numbers into a clear budget.
Ask for a Loan Estimate
When you apply, lenders must provide a standardized Loan Estimate within three business days. Ask your lender to prepare it for your expected price range and loan type. If you are considering lender credits or a “no-closing-cost” option, request a version that shows how the rate changes.
Get a title fee estimate
Call a local title company for an estimated settlement statement for Terrebonne Parish. Give them the address and target price. Ask for the title premium quote for both the lender’s and the owner’s policy so you can plan who will pay which item during negotiations.
Check flood zone and premiums
Confirm whether the property is in a Special Flood Hazard Area. If it is, ask a local insurance agent for a flood quote. This can significantly change your cash to close and your monthly payment.
Verify taxes and any HOA
Ask for the property’s current tax bill or history, and whether any HOA transfer fees apply. Confirm the parish tax calendar and how proration typically works at closing.
Compare at least three lenders
Compare the Cash to Close figure on each Loan Estimate, and look line by line. Ask these questions:
- Which fees are lender fees versus third-party fees?
- Are you charging points, and why?
- What are my options for lender credits and how would they change my rate?
Plan seller concessions and lender credits
If you want the seller to cover part of your closing costs, include a dollar amount for concessions in your offer. Confirm any program limits with your lender before you write. Be precise about which items the concession can cover, such as prepaids, lender fees, and title charges allowed by the program.
Local offices and resources to confirm fees
Use these local sources to verify parish-specific costs and customs:
- Terrebonne Parish Clerk of Court: Ask about current recording fees, document requirements, and any local transfer-tax practices.
- Terrebonne Parish Assessor and Tax Collector: Confirm tax calendars, billing, and typical proration at closing.
- Local title companies or closing attorneys: Request title premium quotes and a settlement estimate for your price range.
- Local lenders and brokers: Ask about typical escrow reserves and underwriting items common to our market.
- FEMA Flood Map Service Center and local floodplain office: Verify the flood zone for a specific address and whether insurance will be required.
- Louisiana Department of Revenue: Check statewide rules that can affect transfer taxes.
- Louisiana Association of REALTORS and local REALTOR offices: Ask about current customs on who pays certain items in Terrebonne Parish.
Houma buyer examples
These illustrations show how costs add up. Use them for budgeting only. For a specific property, rely on your lender and title quotes.
Example A: Lower-cost scenario
Assume the seller pays for the owner’s title policy and any customary transfer items.
- Purchase price: $250,000
- Lender fees, appraisal, and credit: about $2,000
- Lender’s title policy and title fees: about $700
- Prepaids and escrow reserves: about $1,800
- Inspections and survey: about $700
- Recording and other small fees: about $300
- Estimated buyer cash to close: about 2.2% of price, or $5,500 to $6,500
Example B: Higher-cost scenario
Assume flood insurance is required, the buyer pays for the owner’s title policy, and there are fewer seller concessions.
- Purchase price: $400,000
- Lender fees, appraisal, and credit: about $3,500
- Lender’s plus owner’s title policy and title fees: about $2,400
- Prepaids and escrow reserves: about $3,500, including flood insurance
- Inspections and survey: about $900
- Recording and other small fees: about $400
- Estimated buyer cash to close: about 2.9% to 3.2% of price, or $11,700 to $12,700
Smart tips for Houma buyers
- Budget 2% to 5% of the price for closing costs, then firm up numbers with a Loan Estimate and a title quote.
- Price and compare flood insurance early if you are near waterways or in known flood zones.
- Time your closing date to manage prepaid interest. Closing closer to month-end can reduce that piece.
- Ask about lender credits. They can reduce upfront costs in exchange for a slightly higher rate.
- If you plan to ask for seller concessions, set the amount with your lender’s guidance so you do not exceed program limits.
- Get at least three Loan Estimates and compare total Cash to Close rather than rate alone.
- Confirm parish recording fees and tax proration so there are no last-minute surprises.
Ready to run the numbers?
You do not have to guess. With a Loan Estimate, a title fee quote, and a flood premium check, you can know your cash to close before you tour homes. If you want local guidance on lender options, customary who-pays in Terrebonne Parish, and how to structure seller concessions, our team is here to help. Connect with a neighborly expert at Good Earth Realty Houma and let’s make your next move simple.
FAQs
What are typical closing costs for a Houma home under $300,000?
- Many buyers can expect roughly 2% to 5% of the purchase price, depending on loan type, seller concessions, flood insurance, and local fees.
Which closing fees are negotiable in Louisiana?
- Many items are negotiable, including who pays the owner’s title policy and whether the seller contributes to buyer costs, but lender and government fees are less flexible.
Who usually pays the owner’s title insurance in Terrebonne Parish?
- In many Louisiana deals the seller often pays the owner’s policy, but it is negotiable and should be confirmed with your local title company for each property.
How much can flood insurance add to my closing costs?
- If required, you may owe the first-year premium and initial escrow reserves at closing, which can be a significant part of your upfront total in coastal areas.
How do I compare closing costs from different lenders?
- Request Loan Estimates from at least three lenders and compare the Cash to Close and fee details line by line, asking about points and any lender credits.
How do I ask for seller-paid closing costs in my offer?
- Include a specific dollar amount for seller concessions and confirm program limits with your lender before you write, noting which buyer costs the concession can cover.
When should I get closing-cost estimates?
- Ask for a lender’s Loan Estimate and a title settlement estimate as soon as you define your budget so your numbers are reliable when you make an offer.
