Arkansas Closing Costs Explained for Buyers

Buying a home in North Little Rock is exciting, but the line item that surprises many buyers is closing costs. You plan for your down payment, then discover a separate set of fees to finish the purchase. The good news is you can predict and manage these costs with a little local insight. In this guide, you’ll learn what closing costs include, typical ranges for Pulaski County, and smart ways to lower your cash to close. Let’s dive in.

What are closing costs

Closing costs are the non–purchase price charges you pay to complete your home purchase. They cover your loan, third‑party services, title work, recording, and prepaid items like taxes and insurance.

Most buyers start by budgeting about 2% to 5% of the purchase price for closing costs, not including the down payment. Your lender will provide a Loan Estimate early in the process and a final Closing Disclosure at least three business days before closing so you can review the numbers line by line.

Typical buyer costs in North Little Rock

Lender fees

• Loan origination and underwriting often fall around 0.5% to 1% of the loan amount, or a flat fee such as $500 to $2,000.
• Discount points are optional. One point equals 1% of the loan amount and can lower your interest rate, but increases your cash to close.
• Application or processing fees sometimes range from $200 to $750.
• Credit reports typically cost $25 to $60.

Tip: Request Loan Estimates from multiple lenders so you can compare fees in the same format.

Third‑party services

• Appraisal for a typical single‑family home in Central Arkansas often runs about $400 to $700.
• General home inspection usually costs $300 to $600. Specialized inspections such as termite, HVAC, sewer scope, or radon are additional.
• A survey, if needed, usually ranges from $300 to $900 depending on lot size and complexity.
• Environmental or septic inspections, if applicable, vary.

Loan programs can affect requirements. For example, VA loans use a VA appraisal and may require termite or other inspections in some situations.

Title, settlement, and recording

• Lender’s title insurance policy is required when you finance. An owner’s title policy is optional but recommended. Who pays for the owner’s policy is often negotiated and can vary locally.
• Title agency or settlement fees are generally charged as a flat amount that varies by company.
• Recording fees with Pulaski County are typically modest, often in the tens to low hundreds. Confirm current fee schedules with the county or your title company.

Prepaids and escrow

• Prepaid interest covers interest from your closing date to your first mortgage payment. The amount depends on your rate and the day of the month you close.
• Homeowner’s insurance is usually paid for the first 12 months at closing. Annual premiums often range from about $600 to $2,000 depending on the property.
• Escrow deposits commonly include 2 to 6 months of property taxes and insurance to set up your impound account.

In Arkansas, county property taxes are billed on a set schedule. Taxes are typically prorated at closing, so you only pay your share from the day you take ownership.

Taxes, HOA, and transfer fees

• Property taxes are prorated between buyer and seller based on the closing date and Pulaski County’s billing cycle.
• If the home is in an HOA, there may be transfer or setup fees and charges for association documents.
• Check for any state or local transfer taxes or documentary stamps that may apply and how they are handled in your contract.

Miscellaneous

• Wire and courier fees, flood zone certification, extra recording copies, and utility transfer costs can appear on your final statement.
• If required, final water or power readings may involve small fees depending on seller arrangements.

Local Pulaski County factors to confirm

• Title customs: Ask your title company who typically pays for the owner’s title policy in North Little Rock and what the local settlement fees are.
• Recording fees: Pulaski County recording charges are generally modest. Your title company can provide exact amounts based on your documents.
• Tax timing: Contact the Pulaski County Assessor or Treasurer for billing cycles and how prorations are calculated for your closing date.
• Assistance programs: The Arkansas Development Finance Authority offers mortgage and down payment assistance programs that can reduce your cash to close for eligible buyers.

How to estimate your cash to close

Quick worksheet

1. Set your purchase price and down payment to calculate your loan amount.
2. Add lender fees from your Loan Estimate.
3. Add third‑party services, such as appraisal, inspection, and survey.
4. Add prepaids and escrow deposits for insurance, taxes, and prepaid interest.
5. Add title, recording, and any HOA or transfer fees.
6. Subtract your earnest money deposit and any agreed seller or lender credits.

Sample budget for a $250,000 purchase

Assume a 6% down payment and a $235,000 loan amount. Actual fees depend on vendor quotes and your contract.

• Lender fees: about $1,000 to $3,000
• Appraisal: about $400 to $700
• Credit and underwriting: about $25 to $300
• Title and settlement: about $500 to $1,500
• Lender’s title policy: example around $350, varies by company and loan amount
• Owner’s title policy: often $900 to $1,500 if buyer pays, but this can be negotiated
• Recording and county charges: about $75 to $300
• Home inspection: about $300 to $600
• First year homeowner’s insurance: about $600 to $2,000
• Prepaid interest: about $200 to $800 depending on your closing day
• Escrow deposits: about $500 to $2,000
• Miscellaneous (HOA transfer, survey if needed, wiring): about $200 to $1,000

In this scenario, total buyer closing costs often fall roughly between the low $4,000s and around $11,000, which is about 1.6% to 4.4% of a $250,000 price. Your numbers will shift based on who pays the owner’s title policy, your insurance premium, escrow requirements, and any credits.

Ways to lower out‑of‑pocket costs

• Seller credits: You can negotiate a seller credit toward your closing costs. Limits apply based on loan type, and market conditions affect what sellers will accept.
• Lender credits: Some lenders offer credits in exchange for a slightly higher interest rate. Compare the long‑term payment impact.
• Finance where allowed: Certain costs can be offset through lender or seller credits. Prepaids and some title items are typically paid at closing.
• Assistance programs: Explore down payment and closing cost help through statewide programs for eligible buyers.
• Shop around: Gather multiple Loan Estimates and title quotes. Inspection and survey fees vary by provider.
• Use your agent: A local agent can flag customs, suggest negotiation strategies, coordinate estimates, and keep your timeline on track.

Buyer checklist before closing

• Apply early and request Loan Estimates from at least two lenders for the same scenario.
• Ask your lender for an updated cash‑to‑close figure after underwriting.
• Confirm Pulaski County recording fees and the property tax schedule for accurate prorations.
• Obtain title and settlement quotes and clarify who pays the owner’s title policy.
• Budget for appraisal and inspections, which are often paid before closing.
• Verify any HOA transfer fees and required resale documents.
• Review your Closing Disclosure at least three business days before closing and compare it with your Loan Estimate.
• Confirm wiring instructions directly with the title company by phone to avoid wire fraud.

Protect your funds at closing

Wire fraud targeting real estate closings is real. Always call your title company using a trusted phone number to confirm wiring instructions, and never act on wiring changes sent by email without verbal confirmation.

Next steps for North Little Rock buyers

Your exact closing costs depend on your loan program, property, and negotiated terms. Start with the 2% to 5% guideline, collect real quotes from your lender and title company, and build a cash‑to‑close plan using the worksheet above. If you want a local set of eyes on your numbers and strategy, reach out for a personalized walkthrough and vendor introductions.

Ready to map out your budget and negotiate confidently? Connect with Ellen Gets You Home for a one‑on‑one consultation and a clear plan from offer to closing.

FAQs

How much should a North Little Rock buyer budget for closing costs?

• A common starting point is 2% to 5% of the purchase price, then refine with a lender’s Loan Estimate and title quotes.

What closing costs can a seller pay in Pulaski County?

• Seller credits are negotiable and subject to loan program limits; your lender can confirm the maximum allowed for your loan type.

Who typically pays for the owner’s title policy in Arkansas?

• It varies by local custom and contract terms; confirm with your title company and your purchase agreement.

Will my earnest money reduce my cash to close?

• Yes. Earnest money is applied to your cash to close if the transaction proceeds; return rules depend on your contract contingencies.

Can I roll closing costs into my mortgage as a buyer?

• Some costs can be offset with lender or seller credits, but many prepaids and title charges are paid at closing; ask your lender about options.