Are you trying to figure out how much you’ll really pay to close on a home in New Orleans? You’re not alone. Between lender fees, title charges, flood insurance, and taxes, the numbers can feel confusing fast. The good news is you can estimate closing costs with confidence once you know what to expect and how costs are typically split in Orleans Parish.
In this guide, you’ll learn typical buyer and seller closing costs, what’s unique to New Orleans, and smart ways to plan and reduce your bottom line. You’ll also see how to get precise numbers at the right time. Let’s dive in.
Closing costs at a glance
Closing costs are the one‑time fees and prepaids you pay to finalize a home purchase or sale. They are separate from your down payment.
- Buyers often pay about 2% to 5% of the purchase price in closing costs, not counting the down payment.
- Sellers often pay about 6% to 10% of the sale price, largely due to agent commissions and common seller‑paid items.
- Your exact numbers depend on loan type, lender fees, title charges, recording and transfer fees, and any negotiated credits.
- Your lender must give you a Loan Estimate shortly after you apply and a Closing Disclosure at least three business days before closing. These are the most accurate snapshots of what you’ll owe. You can learn more about the Loan Estimate and Closing Disclosure from the Consumer Financial Protection Bureau: read the Loan Estimate explainer and the Closing Disclosure guide.
Buyer costs in Orleans Parish
Buyer closing costs fall into five main buckets. Amounts below are typical ranges to help you plan. Your lender and title company will provide exact figures.
Loan fees and points
- Loan origination, underwriting, and processing fees typically total about 0.5% to 1.5% of the loan amount.
- Optional discount points are 1% of the loan amount per point if you choose to buy down your rate.
- Appraisal usually runs $300 to $800.
- Credit report is typically $25 to $60.
- Flood certification runs about $10 to $25. If the home is in a mapped flood zone, you will also need flood insurance.
Title and settlement charges
- Title search, exam, and settlement fees often total $300 to $900, depending on complexity.
- Lender’s title insurance is required by most lenders. The premium varies by loan amount.
- Owner’s title insurance protects your ownership. Who pays can be a local custom or a negotiated term. Confirm this early in Orleans Parish.
Recording and local fees
- Recording fees apply to the deed and mortgage. Orleans Parish uses fixed, per‑document and per‑page charges. Check the current Orleans Parish recording fee schedule directly with the Clerk of Civil District Court.
Prepaids and escrow deposits
- Prepaid interest covers the period from closing to your first mortgage payment.
- Homeowner’s insurance is often collected for the first year at closing if you escrow.
- Mortgage insurance or FHA upfront MIP may apply, based on your loan.
- Property taxes are prorated between buyer and seller based on the closing date.
Other common items
- Home inspection typically runs $300 to $600 or more.
- Termite inspection is often $50 to $150.
- Surveys, if required, are often $350 to $1,000 or more.
- HOA transfer or estoppel fees, when applicable, are commonly $100 to $500.
Sample buyer estimate
- Purchase price: $300,000
- Typical buyer closing costs (2% to 5%): $6,000 to $15,000
- Prepaids and escrows: $1,500 to $4,500
- Estimated total cash to close, excluding down payment: about $7,500 to $19,500
Note: Your down payment is separate from closing costs.
Seller costs in Orleans Parish
Seller closing costs are driven by commissions, title customs, and prorations. Here is what to expect.
Commissions and title items
- Real estate commissions are often the largest seller expense. Many markets see 5% to 6% of the sale price, though rates are always negotiable.
- In many Southern markets, sellers customarily pay for the owner’s title policy and some title fees. This can vary by parish and by contract in New Orleans, so confirm early.
Taxes, payoffs, and credits
- Transfer or documentary taxes may apply. Who pays can be local custom or negotiated in the contract.
- Sellers pay off existing mortgages and clear any liens at closing.
- Property taxes, assessments, and utilities are prorated to the closing date.
- Repairs or credits agreed to during inspection are paid at closing.
Sample seller estimate
- Sale price: $300,000
- Real estate commissions at 5%: $15,000
- Title, transfer, prorations, and misc. fees: $1,000 to $4,000 (varies)
- Estimated seller closing costs: about $16,000 to $19,000, or 5.3% to 6.3% in this example
Your total can be higher if you pay for the owner’s title policy and transfer taxes. Always check your listing agreement and the purchase contract.
New Orleans factors that change totals
Flood zones and insurance
Large parts of New Orleans fall within FEMA Special Flood Hazard Areas. If the property is in a mapped flood zone, your lender will require flood insurance. Premiums depend on elevation, building characteristics, and whether you use the National Flood Insurance Program or a private policy. You can check a property’s flood map at the FEMA Flood Map Service Center and request a quote early, since the annual premium can affect your escrow deposits and monthly payment.
Title, notaries, and local custom
Louisiana is a civil‑law state, and closings often involve notaries and attorneys. In New Orleans, title companies and notaries commonly handle settlements. Fee structures and who pays for owner’s title insurance can be driven by local practice or contract terms. Ask your agent and title company to clarify what is typical for your segment of the market before you make or accept an offer.
Property taxes and proration
Property taxes are commonly paid in arrears in Louisiana. Your settlement statement will prorate taxes based on the closing date. If taxes have already been paid, you may receive a credit. If not, you may owe a prorated amount. For schedules and assessments, review the Orleans Parish Assessor’s resources to understand billing and exemptions.
Who pays what here
Custom dictates some of the cost split, but your contract controls. In Orleans Parish, it is common for buyers to pay lender fees and lender’s title insurance, and for sellers to pay commissions and potentially the owner’s title insurance, though this is not universal. Transfer or documentary taxes, notary charges, and HOA fees are often negotiable or dictated by the association’s rules. Always confirm allocations in your purchase agreement.
Estimate your costs early
You can get close to your true bottom line before you ever write an offer.
- Use ranges: buyers can budget 2% to 5% of price; sellers often plan for 5% to 8% or more including commissions.
- Ask lenders for a Loan Estimate after you apply. Lenders must provide it within three business days. The CFPB’s Loan Estimate page explains what each section means.
- Request a preliminary title quote from a local title company or closing attorney for Orleans Parish recording and settlement fees. The Orleans Parish Clerk of Civil District Court publishes the recording fee schedule.
- Include recurring costs: in New Orleans, factor in homeowner’s insurance and potential flood insurance in your budget.
Timeline to closing
- After you apply, you should receive the Loan Estimate within three business days.
- Your title company runs the title search and issues a title commitment while you finalize loan conditions.
- Your lender must send a Closing Disclosure at least three business days before closing. See the CFPB’s Closing Disclosure guide if you want to preview the format.
- Complete your final walkthrough and bring a cashier’s check or wire for cash to close. Always confirm wiring instructions directly with the title company by phone.
Ways to reduce what you pay
For buyers
- Shop two to three lenders for rates and fees. You can sometimes choose a lender credit in exchange for a slightly higher rate.
- Negotiate seller concessions in your offer, subject to loan limits and market conditions.
- Explore down payment and closing cost assistance if you qualify. The Louisiana Housing Corporation posts current homeownership programs and approved lenders.
- Close later in the month to reduce prepaid interest if the timing works.
For sellers
- Discuss commission options with your listing agent. Some sellers consider tiered structures.
- Get estimates from more than one title company or notary for settlement fees.
- If repairs are requested, price out cost‑effective solutions or consider a credit at closing.
Quick checklists
Buyer checklist
- Get preapproved and request sample Loan Estimates from multiple lenders.
- Ask a local title company for a title and recording fee quote for Orleans Parish.
- Pull a flood map and get a flood insurance quote if the property is in or near a flood zone. Use the FEMA Flood Map Service Center.
- Budget for inspections, survey, and HOA transfer fees if applicable.
- Decide whether to request seller concessions in your offer.
Seller checklist
- Estimate commission based on your listing agreement and market norms.
- Order payoff statements for any mortgages or liens.
- Ask your title company about the cost of the owner’s title policy and who typically pays it in New Orleans.
- Check for any municipal liens or unpaid assessments that must be cleared.
- Plan for prorated taxes and utilities at closing. Review tax details with the Orleans Parish Assessor if needed.
Next steps
If you want local, straight‑talk guidance on your numbers, we’re here to help. From early estimates to the final Closing Disclosure, we’ll walk you through each line so you can make confident decisions. Connect with Patricia Conaghan for a custom closing cost plan and proven strategies that protect your bottom line.
FAQs
What are typical buyer closing costs in New Orleans?
- Buyers commonly pay about 2% to 5% of the purchase price for lender fees, title and recording charges, prepaids, and inspections. Your Loan Estimate will show a tailored figure for your loan and property.
How much do sellers usually pay in Orleans Parish?
- Sellers often net out 6% to 10% of the sale price in total costs, with commissions as the largest line item. Title customs, transfer taxes, and credits can change this range.
Who pays for owner’s title insurance in New Orleans?
- In many Southern markets the seller pays for the owner’s title policy, but practice varies by parish and by contract. Confirm the allocation with your agent and title company before making or accepting an offer.
Are there transfer or documentary taxes in Orleans Parish?
- Transfer or documentary taxes may apply and who pays is driven by local custom or contract terms. Your title company will confirm the exact charges and how they are split.
How do flood zones affect my closing costs?
- If the home is in a FEMA‑mapped flood zone, lenders require flood insurance, and the first year’s premium may be collected at closing if you escrow. Check maps at the FEMA Flood Map Service Center and get a quote early.
What documents show my exact closing costs?
- Your lender’s Loan Estimate (within three business days after you apply) and your Closing Disclosure (at least three business days before closing) are the most accurate sources for your final numbers. The CFPB provides clear explainers for both forms.
Are there programs to help with buyer closing costs in Louisiana?
- Yes. The Louisiana Housing Corporation offers down payment and closing cost assistance through select programs. Availability and income limits change, so review current options on LHC’s homeownership page.
Loan Estimate explainer | Closing Disclosure guide | FEMA Flood Map Service Center | Orleans Parish Clerk of Civil District Court | Orleans Parish Assessor | Louisiana Housing Corporation homeownership
