When you buy a home, closing costs are the fees needed to finalize your loan and officially transfer ownership. Think of them as the “all-in” costs that make the purchase legal and complete.
Typical Closing Costs in Texas
Most buyers here in Texas — especially around the Austin, DFW, and Central Texas markets — can expect closing costs to run about 3% to 5% of the purchase price.
These usually include:
- Property taxes
- Title insurance
- Appraisal
- Lender fees
- Escrow deposits for taxes & insurance
- Homeowners insurance
- HOA or condo setup fees (if applicable)
- County recording fees
Every loan type is a little different, but these are the big ones most buyers see.
Who Pays What in Texas?
Here’s the general norm in our state:
✔️ Buyers typically pay:
- Appraisal
- Lender fees
- Escrows
- Their share of title/closing charges
✔️ Sellers often pay:
- The title insurance policy
(But this is negotiable, and in a competitive market the buyer sometimes covers it.)
If you’re not sure who pays what in your specific contract, I can break it down line by line.
Closing costs should never feel like a surprise. A good lender will show you every fee upfront and explain it in plain English so you know exactly what you’re paying for — and why.