Texas buyer closing costs and cash to close
A Texas buyer pays about $5,209 in closing costs on a $275,000 home with 20% down. That is 1.9% of the price. Prepaids add about $3,735. Cash to close is about $61,476.
See the lender fees, title, prepaids and down payment on a typical home loan.
Rates last checked September 2026. Reviewed by Harrison Farrell, founder. How we get these numbers
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| Deed recording fee | $34 |
| Mortgage recording fee | $90 |
| Down payment (20%) | $55,000 |
| Title insurance and settlement | $1,175 |
| Lender fees | $3,910 |
| Prepaids and escrow reserves | $3,735 |
| Property tax credit from seller | −$2,468 |
| Estimated cash to close | $61,476 |
- Closing costs on $275,000
- About $5,209
- Owner's title policy
- Seller pays
- Cash to close, 20% down
- About $61,476
How much are buyer closing costs in Texas?
About $5,209 on a $275,000 home with a $220,000 loan. That is 1.9% of the price. Prepaids add about $3,735. $275,000 is close to the typical Texas home value (the Census median, weighted by county).
| Line | Buyer |
|---|---|
| Down payment (20%) | $55,000 |
| Lender's title insurance policy | $100 |
| Lender-required endorsements | $125 |
| Settlement / closing fee | $450 |
| Survey | $500 |
| Deed recording fee | $34 |
| Mortgage recording fee | $90 |
| Loan origination (1%) | $2,200 |
| Appraisal | $550 |
| Credit report | $60 |
| Underwriting / processing | $995 |
| Flood certification | $25 |
| Tax service fee | $80 |
| Closing costs | $5,209 |
| Prepaid interest | $1,214.52 |
| Homeowner's insurance (12 months) | $1,100 |
| Insurance escrow reserve (2 mo) | $183.33 |
| Property tax escrow reserve (3 mo) | $1,237.50 |
| Prepaids and escrow reserves | $3,735.35 |
| Property tax credit from seller | −$2,468.22 |
| Estimated cash to close | $61,476.13 |
Run it with your own numbers. Pick the county, loan type, rate and closing date.
What does a buyer pay at closing in Texas?
The buyer pays the lender fees and the lender's title policy. The seller usually pays for the owner's title policy in Texas. Seller customarily pays the owner's policy (TREC contract paragraph 6). In Texas, the state sets title insurance rates. So the owner's policy costs the same at every title company.
What else changes a Texas buyer's costs?
- The Texas Department of Insurance sets title insurance prices. So the owner's policy costs the same at every title company. The seller usually pays for it.
- Property taxes are billed in October and due by January 31 of the next year. At closing the seller credits the buyer for taxes from January 1 through closing. The TREC contract uses this year's taxes if they are known. If not, buyer and seller settle up when the real bill comes out.
- Texas property taxes are among the highest in the country, near 1.8% of value a year. So the tax split is often the third largest line on a Texas seller net sheet.
Texas buyer closing cost questions
How much are buyer closing costs in Texas?
About $5,209 on a $275,000 home with 20% down. That is 1.9% of the price. Prepaid insurance, interest and escrow add about $3,735. Cash to close is about $61,476. That counts the $55,000 down payment and takes off the seller's $2,468 tax credit.
Does the buyer pay transfer tax in Texas?
No. Texas has no transfer tax on home sales.
Who pays for the owner's title policy in Texas?
The seller usually pays for the owner's title policy in Texas. Seller customarily pays the owner's policy (TREC contract paragraph 6).
What is the difference between closing costs and cash to close?
Closing costs are the fees and taxes for the loan, title and recording. Cash to close is all the money you bring. It adds your down payment. It adds prepaids, like home insurance, interest and escrow. Then it takes off credits. Those include the seller's property tax credit and the earnest money you already paid.
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