Closing Costs in Texas: How Much and Who Pays

Buyer closing costs in Texas typically total about 2%–5% of the loan amount, separate from your down payment. That covers lender origination and appraisal fees, title insurance and escrow, and prepaid property taxes and insurance that fund your escrow account. The percentage is higher on smaller loans (fixed fees weigh more). Your Loan Estimate from the lender gives the real number for your purchase.

Common items: lender fees (origination, underwriting, appraisal, credit report), title insurance and title/escrow company fees, a survey, recording and government fees, and prepaids — upfront property taxes and homeowners insurance plus any per-diem interest. Your Loan Estimate and, later, your Closing Disclosure itemize every line so you can review it before signing.

Both sides have their own. Buyers generally pay lender fees, the loan’s title policy, survey, and prepaids. Sellers in Texas customarily pay the owner’s title insurance policy and their own payoff and fees. Many items are negotiable — a buyer can ask the seller for a closing-cost credit in the offer. The TREC contract records who pays what.

Since the 2024 NAR settlement took effect, buyer-agent compensation is negotiable and no longer assumed to be paid by the seller through the MLS. A seller may still offer to cover it, or a buyer may agree to pay their agent directly, as set in a written buyer-representation agreement. It is now a point you negotiate deal by deal — our guide on using a buyer’s agent explains your options.

Title insurance premiums in Texas are set by the state (promulgated rates), so they are consistent across title companies and scale with the price — roughly in the high hundreds to a few thousand dollars for typical homes. On top of the premium are escrow/closing fees and endorsements. Because rates are regulated, you compare service, not price, on the policy itself.

Often, but not always. Lenders and title companies usually want a current survey to issue certain title coverage; if the seller has an existing acceptable survey plus a T-47 affidavit, you may reuse it instead of buying a new one. New surveys commonly run a few hundred dollars. Your title company will tell you what they will accept.

Taxes are prorated. Texas property taxes are paid in arrears (for the current year, due the following January), so at closing the seller credits the buyer for their share of the year up to the closing date, and the buyer pays the full bill when it comes due. Your Closing Disclosure shows the proration line.

Some can. You can ask the seller for a closing-cost credit, shop lenders to compare fees, or take a slightly higher rate in exchange for a lender credit. On a refinance you can often roll costs into the loan; on a purchase you generally cannot finance them beyond seller/lender credits, though VA and some programs allow more flexibility. A lender can model the trade-offs.

At closing. You review the final amounts on the Closing Disclosure (lenders must provide it at least three business days before closing), then bring the funds — typically by wire or cashier’s check — on closing day. Always confirm wire instructions by phone directly with your title company to avoid wire-fraud scams.