Closing Costs in Texas: What Buyers and Sellers Really Pay
How much is closing cost in Texas? Plan on 2–5% of the loan amount — $6,300 to $15,750 on a typical $350,000 purchase — plus a few Texas-only twists, from state-set title insurance rates to some of the nation’s highest property taxes. Here is who pays what, and how to pay less.
Key takeaways
- Closing costs in Texas typically run 2%–5% of the loan amount — $6,300–$15,750 on a $350,000 home with 10% down.
- Texas title insurance premiums are set by the state — every licensed title company charges the same base rates.
- Under standard TREC contracts the seller customarily pays for the owner’s title policy — but everything is negotiable.
- Texas charges no state income tax and no state real-estate transfer tax — but property taxes are among the nation’s highest, which swells escrow bills.
- The worked example: $41,300–$50,750 cash to close on $350,000 at 10% down and today’s 7.28% rate.
How much is closing cost in Texas?
The honest answer is a range: 2% to 5% of the loan amount, per the Consumer Financial Protection Bureau. On a $315,000 loan — a $350,000 home with 10% down — closing costs in Texas run roughly $6,300 to $15,750, due at the closing table alongside the down payment.
Closing costs are not one fee; they are a stack of lender charges, third-party services and prepaids. The exact mix depends on your lender, your county and what you negotiate — and Texas has a few quirks that move the needle, covered below.
What are closing fees in Texas?
Ask what closing fees in Texas actually buy: the settlement statement breaks into three groups. Lender charges — origination (often 0.5%–1%), credit report, discount points. Third-party services — appraisal ($300–$600), title search, the lender’s title policy, a survey ($350–$600, very common in Texas), settlement and recording fees.
Prepaids surprise buyers most: prepaid interest, a year of homeowners insurance paid upfront, and the initial escrow deposit for property taxes — in Texas that last line can be the biggest single item. Our closing-costs guide walks through every line item in full.
Who pays closing costs in Texas?
Who pays closing costs in Texas? Both sides — but the split is decided by the contract, not by Texas law. Under the standard Texas Real Estate Commission (TREC) contracts, the seller customarily pays the owner’s title policy, while the buyer pays the lender’s title policy, the survey and lender fees.
But “customarily” is doing heavy lifting: everything is negotiable. In a buyer’s market, sellers routinely offer concessions — a credit toward your closing costs worth a few percent of the price. In a hot market, buyers sometimes absorb costs the seller would normally pay. Our closing-costs guide compares both sides of the ledger.
Three Texas twists buyers from other states miss
1. Title insurance rates are set by the state. Texas is a promulgated-rate state: the Texas Department of Insurance sets the premiums and publishes official rate charts, so every title company charges the same base rates. Shop on service and ancillary fees, not the premium.
2. No state income tax, no state transfer tax. Texas charges neither — our Texas paycheck guide shows what the missing income tax means for take-home pay. The missing transfer tax is one fee sellers in many other states cannot avoid.
3. Property taxes are among the nation’s highest. With no income tax, Texas leans on property taxes — prorated taxes plus a large initial escrow deposit on your disclosure. In high-tax counties the escrow line alone can run several thousand dollars.
A worked example: $350,000 at 7.28%
What that means in dollars on a $350,000 home with 10% down, at today’s 7.28% 30-year rate:
| Line | Amount |
|---|---|
| Purchase price | $350,000 |
| Down payment (10%) | $35,000 |
| Loan amount | $315,000 |
| Est. P&I at 7.28% | $2,155/mo |
| Closing costs (2%–5% of loan) | $6,300–$15,750 |
| Total cash to close | $41,300–$50,750 |
With 5% down the loan rises to $332,500: about $2,275 a month in P&I and $6,650–$16,625 in closing costs. Price your own scenario on our mortgage calculator.
One more Texas-sized line buyers underestimate: the initial escrow deposit. Lenders can require up to two extra months of property taxes and insurance as a cushion at closing, on top of the prorated amounts — in a high-tax Texas county that cushion alone can add $1,000–$2,000 to your cash to close. It is not a fee — the money sits in your escrow account and pays future bills — but it still has to be in your pocket on closing day. When you compare Loan Estimates, read the initial-escrow line separately from the true fees: two lenders can show identical closing costs and very different cash to close because of it.
Ways Texans actually lower the bill
You cannot change the state-set title premiums, but nearly everything else bends. Compare at least three Loan Estimates, ask the seller for concessions, or consider lender credits (a slightly higher rate for covered fees). Our guide to reducing closing costs ranks every tactic by typical savings.
Try it yourself
Price the $350,000 example above at 7.28% — then add the 2–5% closing-cost band to see your true cash to close.
Open the mortgage calculatorSources & further reading
External figures come from these; the worked payments are our own arithmetic at 7.28%.
- Consumer Financial Protection Bureau — What fees or charges are paid when closing on a mortgage?The 2%–5% closing-costs band, in plain English.
- Texas Department of Insurance — Title InsuranceThe state’s title insurance regulator; publishes the official promulgated rate charts.
- Texas Department of Insurance — 2026 Title Insurance Rate ChartThe current state-set premium rates every Texas title company must use.
- Freddie Mac — Primary Mortgage Market SurveyThe weekly US survey behind the 7.28% rate (1 October 2026).