Closing costs should not feel mysterious. Whether you are buying your first home or selling a long-time residence in East Greenwich, you deserve a clear, simple picture of what you will pay and when you will pay it. In this guide, you will learn the common line items for buyers and sellers in Rhode Island, what is negotiable, and the key steps that keep your closing smooth. Let’s dive in.
Buyer closing costs in Rhode Island
Common line items
Here are the typical costs buyers see in Rhode Island. Your lender and settlement agent will confirm exact amounts.
- Loan application and lender fees, such as origination, underwriting, and processing
- Appraisal fee, usually paid when the appraisal is ordered
- Credit report fee
- Title search and title insurance policies (lender’s policy required, owner’s policy optional and negotiable)
- Settlement or closing fee charged by the title company or attorney
- Recording fees charged by the county or registry
- Prepaid items, including the first year of homeowners insurance, prepaid interest, and initial escrow deposits for taxes and insurance
- Property tax prorations and any HOA-related escrows, if applicable
- Mortgage insurance if required by your loan
- Home inspection and any specialty inspections, usually paid at the time of service
- Survey or municipal certificate fees if required by your lender or title company
When your money is due
- Earnest money deposit: due soon after you go under contract and held in escrow until closing
- Appraisal and inspections: typically paid when ordered or at the appointment
- Early loan fees: some lender charges and your credit report fee occur early in the process
- Closing Disclosure: you will receive this at least 3 business days before closing so you know your final cash to close
- Final funds: paid by certified check or wire at closing using verified instructions from your settlement agent
How much to budget
As a broad estimate, buyers often spend about 2 to 5 percent of the purchase price in closing costs, not counting the down payment. The range varies based on loan type, local fees, and whether you buy an owner’s title policy. Always rely on your lender’s Closing Disclosure for the exact number.
Seller closing costs in Rhode Island
Common line items
These are the most common costs sellers see. The settlement statement at closing will show the final numbers.
- Real estate broker commissions, negotiated in your listing agreement and typically the largest seller expense
- Mortgage payoff and any other lien payoffs
- Seller’s attorney or settlement fee, if applicable
- Prorated property taxes and any utility charges through the date of closing
- Transfer taxes or documentary stamps if required by state or local rules
- Owner’s title insurance, depending on local custom and negotiation
- Agreed repairs and any seller concessions or credits to the buyer
- Recording fees for mortgage releases or other documents
- Optional home warranty, if agreed in the contract
When charges are handled
- Commissions, payoffs, and seller credits are paid from your proceeds at closing
- The settlement agent will obtain payoff figures shortly before closing and deduct them at funding
What to budget
As a planning figure, sellers often see total transaction costs of about 6 to 10 percent of the sale price, depending on the commission rate and any loan payoffs. Your exact amount will be confirmed in the listing agreement and on the settlement statement.
East Greenwich and Kent County details
Recording and town paperwork
- Recording fees for deeds, mortgage releases, and other documents are set by the Kent County Registry of Deeds. Your settlement agent will include current fees on your statement.
- If East Greenwich requires a municipal certificate of tax status or similar documentation for recording, the Town Clerk or Tax Assessor issues it. Ask your title company or agent early so it does not delay closing.
Property taxes and proration
- Property taxes are prorated through the day of closing. You will see a credit or charge based on the town’s billing cycle and the closing date.
- Confirm the East Greenwich tax schedule and any upcoming due dates with your settlement agent so the proration on your statement makes sense to you.
Closing customs to confirm
- Owner’s title insurance payment can vary by market. In some areas the seller pays for the owner’s policy. In others the buyer does. Treat this as negotiable.
- Some Rhode Island transactions use attorneys for closing. Others use title or settlement companies. Confirm who is handling your file and the related fees early in the process.
Municipal inspections and certificates
- Certain properties may need specific certificates or inspections, such as lead-related disclosures for older homes or septic inspections where applicable. Confirm East Greenwich requirements early to prevent last-minute delays.
What is negotiable
Items you can negotiate
- Who pays for an owner’s title insurance policy
- Seller concessions that credit buyers for allowable closing costs
- Whether the seller completes repairs or gives a closing credit
- Commission rate, which is agreed in the listing agreement between the seller and listing agent
Limits to keep in mind
- Lenders limit seller-paid concessions based on loan type
- Some fees cannot be waived, such as recording fees and required lien payoffs
Ways to reduce out-of-pocket costs
- Compare lenders by requesting and reviewing Loan Estimates. Origination and discount fees can vary.
- Shop for title and settlement services where allowed. Ask about bundled fees and service options.
- Ask if a reissue title insurance rate applies based on an existing policy. This can lower premium cost in some cases.
- Negotiate who pays the owner’s title policy or whether a repair credit makes more sense than doing the work before closing.
- If permitted by your loan program and appraisal, ask your lender whether you can roll some closing costs into the mortgage.
Closing timeline at a glance
- Contract signed: deliver earnest money to the named escrow holder within the time stated in your contract
- Week 1 to 2: order inspections and your lender orders the appraisal after you authorize it
- Mortgage processing: pay any early loan fees and respond quickly to document requests
- Three business days before closing: you receive your Closing Disclosure showing your final cash to close
- Closing day: bring a government ID and send certified funds or a wire using instructions verified directly with the settlement agent by phone
Practical checklists
Buyer checklist
- Get preapproved and compare Loan Estimates
- Budget 2 to 5 percent of the purchase price for closing costs, plus appraisal and inspection fees
- Deliver earnest money per the contract and keep your receipt
- Schedule inspections early and handle repair negotiations promptly
- Confirm homeowners insurance and provide proof to your lender
- Review your Closing Disclosure at least 3 business days before closing and verify your cash to close
- Bring valid ID and arrange certified or wired funds using verified instructions
Seller checklist
- Review your listing agreement for commission terms and timing
- Confirm any East Greenwich town paperwork or tax certificates with your agent or settlement company
- Order payoff statements from your lender a few days before closing
- Expect commissions, payoffs, prorations, and any credits to be deducted from proceeds
- Confirm how and when you will receive your net proceeds by check or wire after recording
Avoid delays and wire fraud
Small steps make a big difference. Reply quickly to lender and title requests, schedule inspections early, and keep your photo ID current. Most important, protect your funds.
- Never rely on emailed wire instructions without calling a known phone number for your settlement agent to verify them
- Be suspicious of last-minute changes to wire details
- Use two-factor verification when your title company offers it
Plan with confidence
Closing costs do not have to be a surprise. When you understand who pays what, when money is due, and which items are negotiable, you can plan your move with confidence. If you want a clear, personalized estimate for your East Greenwich purchase or sale, we are here to help.
Ready to budget with precision and move forward with a smooth closing? Connect with the Steven Miller Group for local guidance and a no-pressure plan.
FAQs
Will my earnest money be lost if my loan is denied?
- It depends on your contract contingencies. If you cancel within a valid financing or inspection contingency, your earnest money is typically returned. If you breach the contract, it can be at risk.
When will I know my exact cash to close as a buyer?
- Your lender must provide a Closing Disclosure at least 3 business days before closing. That document shows your final funds to bring.
How do I avoid wire fraud during closing?
- Always call your settlement agent using a known, verified phone number to confirm wiring instructions. Treat any last-minute change to wire details as suspicious.
Can I roll closing costs into my mortgage?
- Sometimes, depending on your loan program, appraisal value, and lender rules. Ask your lender whether this is allowed for your specific loan.
Who pays for the owner’s title insurance policy in East Greenwich?
- Local custom varies and the party paying is negotiable. Confirm expectations early with your agent and settlement company, and include the agreement in your contract.
