Closing Costs in Texas
The average closing cost in Texas is $16,012, which is 5.2% of the home price. Texas has no transfer tax, which saves buyers money.
Avg Closing Costs
$16,012
As % of Price
5.2%
Transfer Tax
None
Attorney Required
No
Closing Cost Breakdown for a $308,212 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $2,466 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $1,541 |
| Transfer Tax | N/A |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (optional) | N/A |
| Prepaid Property Tax (2 months) | $699 |
| Prepaid Homeowners Insurance (1 year) | $925 |
| Prepaid Interest (15 days) | $659 |
| Estimated Total | $7,740 |
* Estimates based on average Texas home price of $308,212 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Texas
Negotiate Seller Concessions
Ask the seller to cover part of your closing costs. In Texas, sellers can typically contribute up to 3-6% of the sale price toward buyer closing costs.
Shop Multiple Lenders
Origination fees and lender charges vary significantly. Get Loan Estimates from at least 3 lenders and compare the “Loan Costs” section.
Use First-Time Buyer Programs
Texas offers programs like TDHCA My First Texas Home that can help with closing costs.
Close at End of Month
Closing near the end of the month reduces the prepaid interest charges, which can save you hundreds of dollars.
Legal Context for Texas Closings
Conveyance Document
General-warranty or special-warranty deed
Security Instrument
Deed of trust or vendor's lien retained in the deed
Foreclosure Process
Non-Judicial
Attorney Required
No
Texas uses general-warranty or special-warranty deed for property transfers and deed of trust or vendor's lien retained in the deed as the security instrument. While an attorney is not required, you may still choose to hire one.
