Closing costs
Closing costs in Alabama
In Alabama, an attorney is customarily involved in the closing, and Alabama levies a transfer/deed tax of about 0.1%, customarily negotiable-paid. deed recordation $0.50/$500, uniform; payer not fixed by statute. Code of Ala. §40-22-1. Here's roughly what you'll pay and what each line is.
How much are closing costs in Alabama?
Estimated buyer closing costs in Alabama (on top of your down payment), for a single-family home with 10% down and good credit:
| Home price | Estimated closing costs |
|---|---|
| $300,000 | $6,686–$10,236 |
| $400,000 | $8,098–$12,198 |
| $500,000 | $9,510–$14,160 |
Illustrative estimates — a single-family home, conventional loan, 10% down, good credit. Your real figures come from your Loan Estimate and Closing Disclosure.
What's in your closing costs
- Lender fees — loan origination (~0.5–1% of the loan), plus the appraisal.
- Title insurance — a lender's policy (and usually an owner's policy) protecting against title defects.
- Prepaids & escrow — a year of homeowners insurance plus a couple months of property-tax escrow set aside up front.
- Recording & settlement — county recording fees plus the settlement agent (or attorney) who runs the closing.
Who closes, and transfer taxes, in Alabama
Alabama is an attorney-closing state — a real-estate attorney customarily conducts the closing (budget an attorney fee instead of a settlement fee).
Alabama levies a transfer/deed tax of about 0.1%, customarily negotiable-paid. deed recordation $0.50/$500, uniform; payer not fixed by statute. Code of Ala. §40-22-1
The FHA loan limit in Alabama is about $541,287.
Plan for the full cash to close
Closing costs are only part of the cash you'll need. The down payment is the rest. Map your full savings target:
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