Sticker shock at closing can take the shine off your new Greenwich home. You want to plan your cash with confidence and avoid surprises on signing day. In this guide, you’ll see what buyer closing costs usually include in Connecticut, how they tend to look in Greenwich’s higher‑price market, simple ways to reduce them, and a clean timeline to follow. Let’s dive in.
What closing costs cover in Greenwich
Buying a home involves more than the down payment. Closing costs are one‑time fees and prorated amounts you pay at the closing table. They cover lender charges, title work, attorney services, inspections, municipal recording, and prepaid items like taxes and insurance.
Most financed buyers budget roughly 2 to 5 percent of the purchase price for closing costs. The percentage can look similar across markets, but in Greenwich, higher prices mean larger dollar amounts for items like title insurance, appraisals, and attorney work.
Federal consumer rules require your lender to provide a Closing Disclosure at least 3 business days before closing. It lists each fee and the exact cash to close. For a plain‑English overview of that document and timing, review the Consumer Financial Protection Bureau’s guidance on the Closing Disclosure and your rights.
Line‑by‑line buyer costs
Below are common closing cost categories for Connecticut buyers, plus local notes for Greenwich. Actual amounts depend on your lender, the property, and what you negotiate.
Loan costs (if financing)
- Loan origination, processing, underwriting. Often a percentage of the loan amount or a flat fee. Shopping lenders can change both fees and rates.
- Discount points to buy down your rate. Optional and quoted as a percent of the loan per point.
- Appraisal. Higher‑value or unique Greenwich properties may need costlier or multiple appraisals.
- Credit report, flood certification, and other small lender fees. These are typically modest line items.
Title and closing services
- Title search and examination. Complex historic deeds or easements can add time and cost in Greenwich.
- Lender’s title insurance. Usually required by your lender, one‑time premium based on loan amount.
- Owner’s title insurance. Optional but widely recommended. In Connecticut, who pays is negotiable.
- Settlement or closing fee. Paid to the title company or closing attorney handling funds and documents.
Attorney representation in Connecticut
Most Connecticut buyers hire a real estate attorney for contract review, title opinions, and closing. Fees vary with complexity and property value. Ask for a written, itemized estimate at the start.
Inspections, tests, and surveys
- General home inspection. Larger estates or historic homes can run higher.
- Specialized inspections. Pest, well, septic, radon, chimney, HVAC, or pool, as needed.
- Survey or boundary check. Required by some lenders or recommended for larger parcels.
Municipal and recording charges
- Recording fees. Paid to the Town Clerk to record your deed and mortgage. For procedures and current schedules, use the Town of Greenwich Town Clerk as your official reference.
- State conveyance tax. Connecticut administers a Real Estate Conveyance Tax. Always verify rules and any applicable municipal component with the Connecticut Department of Revenue Services. Do not rely on outdated percentages.
- Mortgage recording and transfer charges. These depend on state and local rules. Your attorney or title company will itemize what applies to your file.
Prorations and prepaid items
- Property taxes. You will reimburse the seller for any prepaid amounts or be credited if amounts are due. Greenwich billing cycles determine the exact proration. For timing and bills, see the Town of Greenwich Tax Collector.
- Homeowner’s insurance and escrow deposits. Many lenders require the first year’s premium at closing, plus initial deposits for taxes and insurance.
- HOA or condo items. Expect prorated dues and, in some cases, transfer or estoppel fees.
Other possible costs
- Mortgage insurance if your down payment is under 20 percent.
- Condo or co‑op management charges for questionnaires, transfers, or move‑in.
- Wire, courier, or remote notary fees if you are closing from abroad or out of state.
How to reduce your closing costs
You have several levers. A few small decisions can save meaningful dollars in Greenwich.
- Compare lenders with written Loan Estimates. Look at origination charges, third‑party fees, and the rate versus points tradeoff.
- Ask for seller concessions. Your lender will confirm what the loan type allows. Any concession must be in the signed contract.
- Consider a lender credit or “no‑closing‑cost” option. You pay less upfront and accept a slightly higher rate.
- Apply for assistance programs. The Connecticut Housing Finance Authority offers mortgages and programs that can help qualified buyers with down payment and sometimes closing costs.
- Shop service providers. Title companies, attorneys, and inspectors set their own fees. Request itemized quotes.
- Negotiate the owner’s title policy. In Connecticut it is negotiable. Buyers often ask the seller to pay or split.
- Time your closing. Closing shortly after a property tax due date can reduce the size of your prorated tax deposit at closing.
Timeline from contract to keys
Use this checklist to keep your closing on track in Greenwich.
- Days 1 to 3 after contract: Open your loan file, deliver your earnest money to the escrow holder, and confirm your attorney and title company.
- Weeks 1 to 4: Your lender orders the appraisal and title search. You book inspections and request quotes for title insurance and attorney services.
- Disclosures: You receive a Loan Estimate early in the process. Your Closing Disclosure must arrive at least 3 business days before closing.
- Final walkthrough: Typically 24 to 48 hours before closing to confirm condition and repairs.
- Closing day: Wire funds or bring certified funds. Your attorney or title company records documents with the Town Clerk and disburses funds. You receive keys per your contract.
- After closing: Confirm your homeowner’s policy is active, watch for your first escrow statement, and verify the recorded deed and mortgage with the Town Clerk.
Example cost snapshots
These examples are for illustration only. Your numbers will vary based on the home, loan, and negotiations.
- Example A: $500,000 purchase with 20 percent down and a mortgage. A 2.5 percent closing cost estimate equals about $12,500. This would cover lender fees, appraisal, title insurance, attorney, inspections, and recording, plus initial escrow deposits for taxes and insurance.
- Example B: $2,000,000 Greenwich purchase with 20 percent down and a mortgage. Using the same 2.5 percent guide, closing costs total about $50,000. Higher title premiums, attorney work, and appraisal costs can make certain line items larger in dollar terms at this price point.
Final thoughts and next steps
Closing costs are manageable when you know each category, get quotes early, and use the Closing Disclosure as your final checklist. In Greenwich, higher property values can scale the dollars even if the percentage is similar to other markets. Lean on your lender, attorney, and title company for written estimates, and confirm any taxes or recording charges directly with the Town and the state.
If you are evaluating Greenwich alongside New York City or Westchester, you deserve a calm, coordinated process and clear numbers from day one. For discreet guidance tailored to your goals, schedule a private consultation with BARNES New York.
FAQs
What are typical closing costs for Greenwich homebuyers?
- Financed buyers often budget 2 to 5 percent of the purchase price for closing costs, with higher Greenwich prices increasing the dollar amounts for items like title insurance, appraisals, and attorney services.
Who usually pays what at a Connecticut closing?
- Buyers typically pay loan, inspection, title, and recording fees plus prepaids, while sellers often pay broker commissions and may contribute to buyer costs if negotiated in the contract.
Are there transfer or conveyance taxes in Greenwich, CT?
- Connecticut imposes a state Real Estate Conveyance Tax and any municipal component must be verified for your date of sale with the Connecticut Department of Revenue Services and the Town of Greenwich.
Is owner’s title insurance required for buyers in Connecticut?
- No, an owner’s policy is optional, but it is widely recommended to protect your ownership; the lender’s policy is usually required when you have a mortgage.
How can I lower my closing costs on a Greenwich purchase?
- Compare Loan Estimates, request seller concessions within loan limits, consider lender credits, shop providers, ask to split the owner’s title policy, and time your closing around tax due dates.
When will I know my exact cash to close?
- Your lender must deliver a Closing Disclosure at least 3 business days before closing that lists every fee, credits, and the exact amount you need to bring to closing.
