If you are planning to buy in Myrtle Beach, you are likely wondering how much cash you will need at the closing table. You want a clear number, not a surprise. In this guide, you will learn what closing costs cover, what is different on the coast, who usually pays what, and how to plan with confidence. Let’s dive in.
Closing costs, in plain English
Closing costs are the one-time fees and prepayments you make to finalize your home purchase. Nationwide, buyers typically pay about 2% to 5% of the purchase price in closing costs, not including your down payment. The exact amount depends on your loan type, the property, insurance needs, and local fees.
Your lender will show an itemized estimate on the Loan Estimate after you apply. Your closing attorney or title provider will also prepare a final statement before closing. Use both to fine-tune your budget.
Typical buyer cost categories
- Loan-related fees. Origination, processing, underwriting, and credit report fees come from your lender. You might also choose to pay discount points to reduce your interest rate. Mortgage insurance may apply based on your loan program and down payment.
- Appraisal and inspections. Lenders order appraisals to confirm value. You may also order a general home inspection, termite inspection, and any specialty inspections needed for the property. A survey may be required or simply wise to confirm boundaries.
- Title and settlement. You will usually buy a lender’s title insurance policy. Title search and closing or settlement fees are part of this bucket. In South Carolina, closings are often handled by a licensed attorney, and parties negotiate how to split these fees.
- Prepaids and escrow reserves. Expect prepaid interest from the closing date to the end of the month, plus your first year of homeowner’s insurance and an escrow cushion for future taxes and insurance. Property taxes are prorated at closing.
- HOA or condo related items. Many Myrtle Beach communities have associations. Plan for prorated dues and administrative items such as transfer or estoppel fees.
What Myrtle Beach adds to the mix
Coastal properties can involve a few extra layers. Planning for these early helps you keep your budget accurate.
Flood zones and insurance
Lenders pull a flood determination based on FEMA maps. If the property sits in a Special Flood Hazard Area, flood insurance will likely be required, and the first year’s premium is often paid at closing. You can check a property’s flood zone at the FEMA Flood Map Service Center.
Windstorm and hurricane coverage
Some carriers require additional wind or hail coverage for coastal homes. That can affect both your annual premium and the escrow deposit your lender requires at closing. Deductibles may be higher than inland policies, so get quotes early.
Condo and HOA fees
Condo and resort communities are common in Myrtle Beach. Expect document fees, transfer or estoppel charges, and prorated dues. These vary by association and should be ordered early to avoid rush fees or delays.
Local recording and closing practices
Recording fees are set by the Horry County Register of Deeds and can change. South Carolina often uses attorneys to handle real estate closings. Your purchase contract and local custom will guide which party pays specific title or settlement charges.
Who pays what in Horry County
Customs can vary, and everything is negotiable within loan program rules. Here is what buyers commonly cover, and what sellers often pay.
What buyers typically pay
- Lender fees such as application, origination, underwriting, points if you choose them, and the credit report.
- Appraisal and inspections.
- Lender’s title insurance policy and recording fees tied to the mortgage.
- Prepaid homeowner’s insurance, flood insurance if required, and escrow deposits for taxes and insurance.
What sellers often pay
- Real estate commission.
- Owner’s title insurance policy is often paid by the seller in many South Carolina transactions, though this is negotiated case by case.
- Any seller-paid concessions agreed to in the contract.
Seller concessions and loan rules
You can ask the seller to help with your closing costs, up to program limits. Examples include:
- FHA loans. Sellers can often contribute up to 6% of the sale price toward buyer closing costs and prepaids. Verify current rules with your lender.
- VA loans. Seller concessions are allowed but capped under VA guidelines.
- Conventional loans. Limits depend on your down payment and loan terms. Ask your lender for your exact cap.
How much to budget: real-world examples
The numbers below are illustrative and will vary by lender, property type, insurance needs, and local fees. Use your Loan Estimate and your closing attorney’s figures for precision.
Example A: Myrtle Beach condo at $225,000
Typical buyer closing cost range: $4,500 to $11,250
Representative line items:
- Appraisal: $450 to $700
- Loan origination and processing: $1,000 to $2,250
- Lender’s title policy and closing fee: $700 to $1,500
- Home inspection and termite inspection: $300 to $600
- HOA estoppel or condo document fees: $200 to $500
- Prepaid insurance and escrows: $800 to $2,000
- Recording fees and miscellaneous: $150 to $500
Example B: Single-family home inland at $350,000
Typical buyer closing cost range: $7,000 to $14,000
You may avoid flood insurance if the home is outside a Special Flood Hazard Area, which can lower insurance prepaids. Appraisal, inspections, and escrow deposits will still apply.
Example C: Coastal or oceanfront home at $600,000
Typical buyer closing cost range: $12,000 to $30,000
Coastal additions may include:
- First-year flood insurance premium if required, which can increase escrow deposits.
- Wind or hurricane coverage or higher deductibles that raise the annual premium.
- An elevation certificate or specialized survey if needed for insurance rating or map updates.
Smart ways to reduce your cash to close
- Ask for a seller credit. Structure your offer with a closing cost concession within your loan’s program limits.
- Compare lenders and closing providers. Origination fees, title premiums, and settlement charges can vary. Shop for quotes and compare your Loan Estimates.
- Time your closing date. Closing later in the month can reduce prepaid interest.
- Get insurance quotes early. Compare homeowner’s, wind, and flood policies so your escrow deposits are not a surprise.
- Clarify HOA fees up front. Request estoppel or resale documents early, especially for condos, to confirm transfer fees and dues.
- Discuss the owner’s title policy. In many South Carolina deals the seller pays this, but it is negotiable. Confirm in your contract.
Your step-by-step plan
- Get preapproved with a lender and review your Loan Estimate for a first look at closing costs.
- Confirm flood zone status using the FEMA Flood Map Service Center and ask your lender or insurance agent about flood requirements.
- Request homeowner’s, wind, and flood insurance quotes to set accurate escrow numbers.
- Ask the HOA or condo management for estoppel or resale documents to identify transfer fees and dues.
- Shop local closing attorneys or title providers for fee estimates and to confirm who pays which title charges.
- Negotiate seller concessions as allowed by your loan program, and write them into your offer.
- Before closing, review your final Closing Disclosure from your lender and your closing statement from the attorney to confirm wire amounts.
Local pitfalls to watch
- Insurance surprises. Coastal wind and flood coverage can raise your upfront and monthly costs. Get quotes early.
- Condo or HOA fees. Transfer and document fees vary. Build them into your budget.
- Elevation or survey needs. Some homes may require elevation certificates or special surveys for insurance rating.
- Recording and local charges. Horry County fees change over time. Your closing provider will give current figures.
Buying in a coastal market should feel exciting, not stressful. With a clear estimate, early insurance quotes, and a local closing team, you can step into your Myrtle Beach home with confidence and no last-minute surprises. If you want a steady guide who will educate, negotiate, and handle the details, connect with Elayna Cassidy.
FAQs
How much should a Myrtle Beach buyer budget for closing costs?
- Most buyers start with 2% to 5% of the purchase price, then adjust for insurance needs like flood and wind and for any HOA or condo fees.
Will the seller pay my closing costs in Horry County?
- Sometimes. Seller concessions are negotiable and limited by your loan program. Ask your lender for your cap and structure your offer to request a credit.
Do I have to buy flood insurance in Myrtle Beach?
- If the home is in a Special Flood Hazard Area per FEMA and your lender requires it, you will need flood insurance. Check the property on the FEMA Flood Map Service Center.
Who typically pays for the owner’s title policy in Myrtle Beach?
- Sellers often cover the owner’s title policy in many South Carolina transactions, but it is negotiable. Confirm in your purchase contract and with your closing attorney.
What is the difference between closing costs and prepaids?
- Closing costs are fees for your loan, title work, and services. Prepaids are upfront items like interest, homeowner’s insurance, flood insurance if required, and escrow deposits for taxes and insurance.
How can I estimate HOA or condo transfer fees before I make an offer?
- Ask the association or management company for an estoppel or resale package early. This confirms transfer fees, dues, and any upcoming assessments that may affect your closing.
