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A Comprehensive Guide to Average Closing Costs in Chattanooga, Tennessee


If you’re considering buying a home in Chattanooga, Tennessee, it’s essential to understand the average closing costs associated with this process. Closing costs are a collection of fees that buyers and sellers must pay when a property transaction is finalized. These costs vary depending on the location, property type, and purchase price. In this blog post, we’ll dive into the average closing costs in Chattanooga, Tennessee, and provide a breakdown of the different fees involved.

Average Closing Costs in Chattanooga, Tennessee

In general, homebuyers in Chattanooga can expect to pay between 2% and 5% of the purchase price in closing costs. Based on the median home value in Chattanooga, which is approximately $275,256 as of 2023, the average closing costs range from $5,505 to $13,763.

Closing Cost Breakdown

1. Loan Origination Fees

These fees are charged by the lender for processing your mortgage application and can range from 0.5% to 1% of the loan amount. In Chattanooga, you can expect to pay around $1,376 to $2,753 for a $275,256 home.

2. Appraisal Fees

An appraisal is required to determine the property’s value for lending purposes. The average appraisal fee in Chattanooga is between $300 and $500.

3. Credit Report Fees

Lenders will typically charge a fee to pull your credit report, which is usually around $25 to $50.

4. Title Search and Insurance

A title search is performed to verify the property’s legal ownership and ensure there are no outstanding liens or claims against it. Title insurance protects the buyer and lender from any future disputes regarding ownership. In Chattanooga, title search and insurance fees typically range from $800 to $1,200.

5. Survey Fees

A property survey is conducted to establish the property’s boundaries and identify any potential encroachments. In Chattanooga, survey fees can cost between $400 and $800.

6. Recording Fees

The local government charges fees for recording the property deed and mortgage documents. In Chattanooga, these fees are generally around $100 to $200.

7. Attorney Fees

While not required in Tennessee, some buyers opt to hire an attorney to review the closing documents. If you choose to do so, attorney fees can range from $500 to $1,000 in Chattanooga.

8. Escrow Fees

Escrow fees are charged by the company that manages the escrow account, holding funds until the transaction is completed. These fees can range from $500 to $1,000 in Chattanooga.

9. Prepaid Expenses

Buyers are required to pay some expenses upfront, such as property taxes, homeowners’ insurance, and mortgage interest. The amount will depend on the specific property and time of year the transaction takes place.

10. Other Miscellaneous Fees

Some additional fees might include a flood certification fee, pest inspection fee, and homeowners’ association transfer fee. These can vary based on individual circumstances and property features.

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