Buying
What closing costs do buyers pay in Texas?
Texas buyers typically pay 2–5% of the loan amount in closing costs, including lender fees, title fees, prepaid taxes, and insurance. VA buyers have limits on what they can be charged.
Closing costs are the fees and expenses paid when a real estate transaction closes. Texas buyers typically pay 2–5% of the loan amount, though the total varies based on lender, loan type, and negotiation.
Common buyer closing costs in Texas
- Loan origination fee: Typically 0.5–1% of the loan amount
- Appraisal fee: $500–$800 for most residential properties
- Credit report fee: $25–$75
- Title search and title insurance (lender's policy): $400–$900
- Survey: $400–$700 if required by lender
- Prepaid homeowner's insurance (12 months upfront): Varies
- Prepaid property taxes (escrow setup): 2–3 months depending on timing
- Prepaid mortgage interest (from closing date to first payment)
- HOA transfer and setup fees: If applicable
How to reduce closing costs
- Negotiate seller concessions: In many transactions, the seller pays a portion of buyer closing costs as part of the deal
- Shop lenders: Origination fees and points vary significantly between lenders
- Time your closing: Closing near the end of the month reduces prepaid interest
- VA loan: Limits which fees lenders can charge VA borrowers
Use the Closing Cost Estimator to project your costs before you make an offer — it's free and only takes a few inputs.
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