Who Pays Closing Costs in Mississippi? A Guide for Buyers and Sellers

by Jason McMichael

When buying or selling a home in Mississippi, one of the most common questions is: “Who pays the closing costs?”

The short answer is that both the buyer and seller normally have expenses, but the exact division depends on the purchase agreement, loan program, closing provider and negotiations.

Buyers commonly pay costs associated with obtaining their mortgage, inspecting the property and establishing insurance and escrow accounts. Sellers commonly pay mortgage and lien payoffs, negotiated brokerage compensation, certain title or settlement expenses, property-tax adjustments and any concessions agreed to in the contract.

However, many closing costs are negotiable. There is no single rule requiring every Mississippi transaction to divide the expenses the same way.

Here is what buyers and sellers should understand before making or accepting an offer.

What Are Closing Costs?

Closing costs are the expenses required to complete the purchase, financing and legal transfer of a property.

According to the Consumer Financial Protection Bureau, closing costs—sometimes called settlement costs—are the upfront costs associated with obtaining a loan and transferring ownership.

They are separate from the home’s purchase price, although some may be paid from the seller’s proceeds or included in the buyer’s total cash required at closing.

Potential expenses include:

Loan-origination charges
Appraisal
Credit-report and lender fees
Title search
Title insurance
Settlement or closing fee
Attorney or document-preparation fees
Recording charges
Home inspection
Survey
Prepaid homeowners insurance
Prepaid interest
Property-tax and insurance reserves
Homeowners-association fees
Brokerage compensation
Mortgage and lien payoffs
Seller concessions
Repair credits

Not every expense applies to every transaction.

Which Closing Costs Does the Buyer Usually Pay?

A financed buyer commonly pays the expenses connected with obtaining the mortgage and evaluating the property.

Possible buyer expenses include:

Loan application or origination charges
Appraisal
Credit report
Underwriting and processing fees
Discount points, if chosen
Lender-required title services
Lender’s title-insurance policy
Home inspection
Specialized inspections
Survey, when required or requested
Homeowners-insurance premium
Prepaid mortgage interest
Initial property-tax and insurance escrow deposits
Recording expenses assigned to the buyer
Buyer-brokerage compensation not paid from another negotiated source
The buyer’s portion of settlement expenses

The buyer’s exact charges should appear on the Loan Estimate and final Closing Disclosure.

The down payment is separate

The buyer’s down payment is part of the cash needed to purchase the home, but it is not normally classified as a closing cost.

For example, a buyer may need money for:

Down payment
Closing costs
Prepaid expenses and escrow deposits
Inspections and other expenses paid before closing

These amounts should be discussed with the lender early in the process.

Which Expenses Does the Seller Usually Pay?

A seller commonly pays expenses associated with transferring the property, satisfying existing debt and fulfilling the purchase agreement.

Possible seller expenses include:

Mortgage payoff
Home-equity loan or line-of-credit payoff
Other liens against the property
Negotiated listing-brokerage compensation
Separately negotiated buyer-agent compensation
Seller’s portion of title or settlement expenses
Deed preparation
Mortgage-cancellation or lien-release expenses
Property-tax adjustments
Homeowners-association dues or assessments
Agreed repairs or repair credits
Seller concessions toward the buyer’s expenses
Other costs assigned to the seller by the contract

The mortgage payoff is not technically a closing fee, but it is deducted from the seller’s proceeds and can be the largest amount shown on the seller’s side of the transaction.

Who Pays for the Title Search and Title Insurance?

There are different title-related expenses, and responsibility can vary.

Title search

A title search examines public records to identify ownership, recorded liens, judgments, easements and other matters affecting the property.

Payment responsibility depends on the purchase agreement and closing arrangement.

Lender’s title-insurance policy

When the buyer obtains a mortgage, the lender will commonly require a lender’s title-insurance policy protecting the lender’s financial interest. The buyer often pays this expense unless the contract provides otherwise.

Owner’s title-insurance policy

An owner’s policy protects the buyer’s ownership interest, subject to the policy terms and exclusions.

Whether the buyer or seller pays for an owner’s policy can depend on the accepted contract and local practice. Buyers should not assume the lender’s policy also protects them; the two policies serve different interests.

Who Pays the Closing or Settlement Fee?

The settlement or closing provider may charge for coordinating the transaction, preparing documents, receiving and disbursing funds and completing the closing.

The buyer, seller or both may pay portions of these services, depending on the purchase agreement and the closing provider’s fee structure.

Before closing, each party should review the estimated charges and ask about anything they do not understand.

Who Pays Property Taxes?

Mississippi property taxes may be adjusted or prorated at closing based on the sale date, whether the taxes have been paid and the terms of the contract.

The seller may be charged for the portion of the tax period during which the seller owned the property. The buyer may receive a corresponding credit and later become responsible for paying the complete bill when it is due.

The exact method can vary, so buyers and sellers should review how taxes are handled on the settlement statement.

The seller’s current bill may include a homestead or other exemption that will not necessarily apply to the buyer.

Who Pays for the Home Inspection?

The buyer usually hires and pays the home inspector.

A general home inspection may evaluate visible and accessible components of the property, but the buyer may also choose or be advised to obtain specialized inspections, such as:

Termite or wood-destroying-insect inspection
Septic-system inspection
Well-water testing
Sewer-scope inspection
Structural evaluation
Roof inspection
HVAC inspection
Mold or moisture evaluation
Pool inspection
Chimney inspection
Boundary survey

Who pays for a particular specialized inspection may depend on the contract, loan program and negotiations.

Paying for an inspection does not automatically mean the buyer must purchase the home or that the seller must repair everything found. The parties’ rights and obligations depend on the contract.

Who Pays for Repairs?

Repair responsibility is negotiated.

After inspections, the buyer may:

Accept the property in its current condition
Request specific repairs
Request a financial credit
Renegotiate another term
Exercise a contractual right to terminate, if applicable

The seller may accept, reject or counter the request according to the contract.

Some repairs may become necessary for the buyer’s financing or insurance, even when neither party initially expected them.

Repair agreements should be placed in writing and should clearly explain:

What work will be completed
Who will complete it
Whether a licensed contractor is required
When the work must be finished
Whether invoices or reinspection will be required
Whether a credit will be provided instead

What Are Seller Concessions?

A seller concession occurs when the seller agrees to pay certain costs for the buyer.

Seller concessions may help cover allowable expenses such as:

Loan-origination charges
Discount points or an interest-rate buydown
Title-related expenses
Prepaid taxes and insurance
Homeowners-association expenses
Other eligible closing costs
Certain repairs or credits

A concession is negotiable and should be written into the purchase agreement.

The buyer’s loan program and lender determine which costs are eligible and how much the seller may contribute. A concession that exceeds the buyer’s allowable or actual costs may not provide the buyer with extra cash.

The lender should approve the structure before the parties depend on it.

Why Would a Seller Pay the Buyer’s Closing Costs?

A seller may consider a closing-cost request when it helps create an acceptable overall offer.

Possible reasons include:

The buyer has sufficient income but limited cash available at closing
The concession may help the transaction proceed
The seller receives an acceptable purchase price
The property has been on the market longer than expected
The seller prefers a concession over completing certain repairs
The concession supports a negotiated interest-rate buydown

A seller should evaluate the complete offer, including price, concession, financing, appraisal risk, inspection terms and probability of closing.

A higher-priced offer with a large concession does not necessarily produce more money for the seller.

Can the Purchase Price Be Increased to Cover Closing Costs?

Sometimes a buyer proposes a higher purchase price in exchange for a seller concession.

For example, instead of offering $250,000 without assistance, the buyer might offer a higher amount and ask the seller to contribute toward eligible closing expenses.

This arrangement depends on:

Seller approval
Loan-program rules
Lender approval
The home appraising at the required value
The buyer having sufficient allowable expenses
The written purchase agreement

Raising the price does not guarantee that the property will appraise. Buyers and sellers should evaluate the appraisal risk before accepting this structure.

How Seller Concessions Affect the Seller’s Net Proceeds

Offers should be compared using estimated net proceeds rather than the purchase price alone.

Consider these simplified examples:

Offer A

Purchase price: $250,000
Seller concession: $0

Offer B

Purchase price: $255,000
Seller concession: $7,500

Before considering other differences, Offer B produces an effective amount of $247,500 after the concession. However, the final comparison also depends on financing, appraisal risk, requested repairs and other contract terms.

Jason can prepare a seller net sheet for each offer so the financial differences are clear.

How Much Should a Mississippi Buyer Expect to Pay?

There is no single percentage that applies to every buyer.

The amount depends on:

Purchase price
Down payment
Loan type
Interest rate
Lender charges
Discount points
Insurance premium
Property taxes
Appraisal
Inspections
Title expenses
Escrow requirements
Negotiated seller concessions

The lender’s Loan Estimate is the most useful early document for understanding the buyer’s expected mortgage-related charges and cash to close.

Buyers should also budget separately for inspections, moving expenses, utility deposits and immediate home maintenance.

How Much Should a Mississippi Seller Expect to Pay?

A seller’s total deductions may include:

Mortgage payoff
Negotiated brokerage compensation
Seller-paid title and settlement expenses
Property-tax and association adjustments
Buyer concessions
Repair expenses or credits
Other contractually agreed charges

The seller-cost article, “What Does It Cost to Sell a House in Mississippi?” explains these expenses in greater detail.

The most accurate way to estimate the seller’s proceeds is to prepare a property-specific net sheet rather than apply one assumed percentage to every transaction.

What Is the Closing Disclosure?

For many financed residential purchases, the Closing Disclosure provides the final details of the buyer’s loan and closing expenses.

The document identifies whether particular costs are:

Buyer-paid at closing
Buyer-paid before closing
Seller-paid at closing
Seller-paid before closing
Paid by another party

If a seller has agreed to contribute toward the buyer’s expenses, the Closing Disclosure should reflect the seller credit or show applicable items as seller-paid.

The Consumer Financial Protection Bureau advises buyers to compare the final Closing Disclosure with the most recent Loan Estimate and ask about unexpected changes.

Sellers may receive a seller-focused version of the settlement information showing the sale price, payoffs, credits, expenses and expected proceeds.

Questions Buyers Should Ask Their Lender

Before making an offer, buyers should ask:

What are my estimated total closing costs?
How much cash will I need in addition to my down payment?
Which costs have already been paid?
How much seller assistance does my loan permit?
Which expenses can seller concessions cover?
Would a temporary or permanent rate buydown be beneficial?
Could the concession create an appraisal issue?
When will I receive an updated estimate?
Which fees can change before closing?
Are sufficient funds still available after inspections and moving costs?

Questions Sellers Should Ask Before Accepting an Offer

Sellers should ask:

What concession is the buyer requesting?
What is my estimated net after the concession?
Is the concession permitted by the buyer’s loan?
Does the offer depend on a higher appraisal?
Is the buyer also requesting repairs?
How strong is the financing approval?
What other seller expenses are included?
Which title and settlement costs does the contract assign to me?
How does this offer compare with other offers by net proceeds?
What risks could prevent the transaction from closing?

Get a Closing-Cost Estimate Before You Sign

Closing costs should not be a surprise discovered at the closing table.

Buyers should work with their lender and real estate professional to understand their estimated cash requirement before making an offer. Sellers should review a net sheet before accepting an offer—especially when the buyer requests closing-cost assistance.

I can help buyers structure an offer that accounts for their available cash and loan requirements. For sellers, I can compare the likely net proceeds and risks of each offer.

Jason McMichael
Broker Associate
Real Broker LLC – CONNECT Group
Cell: 601-804-2524
Office: 601-804-2821
Email: jasonmc.sales@gmail.com

Frequently Asked Questions

Does the buyer or seller pay closing costs in Mississippi?

Both parties typically have expenses. Buyers commonly pay loan-related, inspection, appraisal, insurance and escrow costs. Sellers commonly pay mortgage payoffs, negotiated brokerage compensation, certain settlement expenses, tax adjustments and any agreed concessions.

Is a Mississippi seller required to pay the buyer’s closing costs?

No. Seller-paid closing costs are negotiable unless the seller has already agreed to them in a signed purchase contract.

How does a buyer ask for closing-cost assistance?

The request is normally included in the purchase offer as a specific dollar amount or clearly described concession. The buyer should confirm the request with the lender before submitting the offer.

Can a seller pay all of the buyer’s closing costs?

It depends on the amount of the buyer’s eligible expenses, the loan program, lender requirements and the negotiated agreement. Loan programs may limit seller contributions.

Are seller concessions the same as real estate compensation?

No. A seller concession can cover certain buyer expenses. Compensation is payment for a real estate professional’s services. Both are negotiable, but they are separate concepts.

Who pays for the appraisal?

The buyer commonly pays the appraisal fee when financing the purchase, although the parties can negotiate other arrangements subject to lender approval.

Who pays for the home inspection?

The buyer usually selects and pays the home inspector. Specialized inspections may also be recommended depending on the property.

Who pays for title insurance in Mississippi?

Responsibility depends on whether the policy protects the lender or owner and how the purchase agreement assigns the cost. The buyer often pays the lender’s required policy. Payment for an owner’s policy may be negotiated.

Can closing costs be included in the mortgage?

Some costs may be addressed through lender credits, seller concessions or certain loan structures, but buyers generally cannot simply add every expense to the loan. Ask the lender which options are permitted.

When will the buyer know the final amount needed?

The lender provides a Loan Estimate early in the mortgage process and a Closing Disclosure before closing. Buyers should also account for expenses paid separately, such as inspections.

Last reviewed: August 2026

This article provides general educational information and is not legal, tax, lending or financial advice. Contract terms, closing practices and loan requirements vary. Buyers and sellers should obtain transaction-specific guidance from their real estate professional, lender, closing provider, attorney and tax adviser as appropriate.