Sticker shock at the closing table is no fun. If you are buying a home in Shreveport, understanding closing costs early can help you plan with confidence and avoid last‑minute surprises. You want clear numbers, what is standard in Caddo Parish, and simple ways to lower your out‑of‑pocket total. This guide breaks down typical fees, local practices, and smart savings moves so you can close smoothly. Let’s dive in.
Closing costs, timing, and required forms
Closing costs are the one‑time fees and prepaids you pay at or before closing in addition to your down payment and earnest money. Early in the process, your lender must send you a Loan Estimate within three business days of your application. You will get a final Closing Disclosure at least three business days before closing.
- Use the CFPB’s Loan Estimate explainer to see what each line means and how to compare offers. You can review the interactive guide inside the Consumer Financial Protection Bureau’s owning a home section.
- Before you sign, review the Closing Disclosure line by line. The CFPB has a plain‑English Closing Disclosure explainer that shows where to look for changes.
Link references:
- See the CFPB’s Loan Estimate overview in the Owning a Home section: Loan Estimate explainer
- Review the final form with this guide: Closing Disclosure explainer
Common Shreveport buyer fees
Every transaction is a little different, but most buyers will see versions of the items below. Some costs are set by your lender, others by third‑party providers, and several are prepaids collected for taxes and insurance.
Lender charges
- Origination, underwriting, or processing fee. This is the lender’s charge for making the loan. It can be a flat fee or a small percent of the loan amount.
- Discount points. Optional fees you can pay to lower your rate. In some cases, sellers can help cover points through a concession.
- Credit report fee. A small charge to pull your credit.
Appraisal and other third‑party services
- Appraisal. Required for most loans to confirm value.
- Flood zone determination. Needed if the property is in or near a flood zone.
- Title search and title insurance. Lender’s title insurance is typically required. An owner’s title policy is optional protection for you.
- Survey. Sometimes required by the lender or requested for boundary clarity.
Government and recording charges
- Recording fees. Paid to the Caddo Parish Clerk of Court to record your deed and mortgage.
- Any state or parish transfer or mortgage taxes if applicable. These vary by state and locality.
You can see local recording practices and fee contacts through the Caddo Parish Clerk of Court.
Prepaids and escrow deposits
- Prepaid property taxes, prorated to closing day.
- Homeowners insurance premium, often one year collected at closing.
- Prepaid mortgage interest from the closing date to the start of your first payment.
- Initial escrow deposits so your lender can pay taxes and insurance when due.
Inspections
- General home inspection. Usually paid before closing.
- Wood‑destroying insect inspection, plus septic or well inspections if applicable.
HOA or condo items
- Prorated dues, plus any transfer or resale certificate fees if the home is in an association.
Miscellaneous
- Notary, courier, document prep, wire fees, and the closing agent or attorney fee. In Louisiana, notaries may be more involved than in many other states.
How much should you budget
As a planning rule of thumb, buyers often pay about 2 to 5 percent of the purchase price in closing costs. The exact number depends on your loan type, rate choices, insurance and tax escrows, and which side pays for the owner’s title policy.
- Example only. For a $200,000 purchase, a buyer might plan for roughly $4,000 to $10,000 in closing costs. Higher escrows or points can push you toward the upper end. Your own figures will differ.
For a deeper overview of typical settlement costs, you can also review HUD’s consumer resources on buying a home: HUD homebuying basics.
Louisiana and Caddo Parish specifics
- Civil‑law and notaries. Louisiana’s civil‑law tradition means notaries often play a larger role in real estate closings than in other states. Your closing may be handled by a title company, a closing attorney, or a notary. Confirm the closing agent in your purchase agreement and with your lender.
- Parish recording. Deeds and mortgages are recorded with the Caddo Parish Clerk of Court. Fee schedules can change. Ask your title or closing agent to include current clerk recording fees in your estimate. Check contacts and general information with the Caddo Parish Clerk of Court.
- Title insurance customs. Lender’s title insurance is typically required by the mortgage lender. Who buys the owner’s policy varies by local custom and by what you negotiate in the contract. In some Southern markets sellers often cover the owner’s policy, but practices differ in Shreveport.
- Transfer taxes and stamps. State and local assessments vary. Your title company can confirm if any documentary stamp or mortgage registration fees apply to your purchase.
Who pays what and how to negotiate
Custom is not the same as contract. In Louisiana, many items are negotiable unless a law or your loan rules say otherwise. Your purchase agreement will set who pays which costs.
Seller concessions
Sellers can agree to pay some of your closing costs. The amount allowed depends on your loan program and down payment rules. Ask your lender for the limit on seller‑paid costs for your loan type.
Lender credits
You may accept a slightly higher interest rate in exchange for a lender credit that reduces your closing costs at the table. Your Loan Estimate will show this tradeoff.
Shop service providers
You can compare lenders, and in many cases you can shop for title, closing, and inspection providers. Ask for itemized quotes so you can compare the same services side by side.
Roll certain costs into the loan
In some cases, you can finance portions of costs or prepaids, subject to appraisal and loan rules. Your lender can confirm what is allowed for your situation.
Choose your closing date wisely
Your closing date affects prepaid interest and tax proration. A late‑month closing may reduce prepaid interest, while timing around property tax cycles can change escrow amounts.
Local programs that can help
State and local programs may help cover down payment and sometimes closing costs for first‑time or income‑qualified buyers. Start your research early and confirm rules with your lender and the program provider.
- Explore state options through the Louisiana Housing Corporation. Look for homebuyer and down payment assistance programs and confirm whether funds can be used for closing costs.
Your step‑by‑step checklist
- Get at least two Loan Estimates from different lenders and compare the same line items.
- Ask the listing agent whether the seller will provide the owner’s title policy or cover any transfer charges, as is sometimes customary in the area.
- Request an itemized estimate from your title or closing agent that includes Caddo Parish recording fees and estimated taxes and insurance escrows.
- Confirm eligibility for state or local homebuyer assistance and whether funds may be used for closing costs.
- Budget for inspection and appraisal fees early. These are often paid before closing.
- Review your Closing Disclosure as soon as you receive it and ask your lender and title company to explain any large or unexpected charges.
Simple scenarios
- First‑time buyer with limited cash. You ask for a seller concession within your loan program limits. You compare two lenders and choose one offering a small lender credit to offset title and recording fees. You choose a closing date late in the month to reduce prepaid interest.
- Relocating buyer using a low down payment loan. You decide not to buy points and instead keep cash for prepaids and escrows. You confirm whether the seller will purchase the owner’s title policy and verify recording fees with your closing agent.
- Move‑up buyer with a strong down payment. You choose to pay a fraction of a point to lower your rate and monthly payment. You shop providers for title and inspection to keep other third‑party fees in check.
Ready to run numbers?
When you understand the moving parts, closing costs become predictable and manageable. If you want local guidance, quick answers, and a clear plan tailored to Shreveport and Caddo Parish, reach out. You will get straight talk on what is customary here, how to position your offer, and simple steps to reduce what you bring to the table. Connect with Cassie Walton to get started.
FAQs
How much should a Shreveport buyer budget for closing costs?
- Plan for about 2 to 5 percent of the purchase price, then get a personalized Loan Estimate from your lender for a precise figure.
Can a Shreveport seller pay some of my closing costs?
- Often yes through a seller concession in your contract, subject to your loan program’s limits and what you negotiate.
Do Louisiana buyers have to purchase an owner’s title policy?
- Lenders usually require a lender’s policy, while an owner’s policy is optional protection for you; who pays is set by local custom and your contract.
What is the difference between prepaids and closing costs for buyers?
- Prepaids are advance payments for taxes, insurance, and interest, while closing costs are fees for your loan, services, and recording documents.
When will I know my exact closing cost number before closing?
- You should receive a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing.
