Closing Costs for Texas Homebuyers
The single most common surprise for first-time buyers: the down payment is not the only cash you need.
Down payment vs. closing costs
Your down payment goes toward the price of the home and becomes equity. Closing costs pay third parties for the work of making the loan and the transfer happen. Together they are your cash to close.
Typical closing cost line items
- Lender fees — origination, underwriting
- Appraisal and credit report
- Title insurance, title search and closing fee
- Recording fees and transfer costs
- Survey, when required
- Prepaid interest for the remainder of the closing month
Prepaids and escrows
Separate from fees, you will typically fund an escrow account for property taxes and homeowners insurance and prepay the first year of insurance. In Texas, where tax bills are substantial, escrow funding is often the largest piece of closing costs.
Ways buyers may cover cash to close
- Savings
- Seller-paid closing costs negotiated in the contract, within program limits
- Lender credits
- Documented gift funds
- Down payment assistance programs, where available and eligible
Getting real numbers
Your Loan Estimate and later Closing Disclosure show actual figures for your transaction. Estimates on any website are illustrative only.
Everything on this page is general homebuyer education. Mortgage eligibility is subject to program guidelines, lender requirements, underwriting and borrower-specific circumstances — it is never decided by an article.