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.