Closing Costs in Texas: A Complete Breakdown of What You Will Pay
January 15, 2026 | 6 min read
Closing costs are one of the most common surprises for homebuyers. In Texas, they typically range from 2% to 5% of the purchase price. On a $340,000 home, that is $6,800 to $17,000.
Typical Closing Costs in Texas
| Fee | Typical Cost | Paid By |
|---|---|---|
| Loan Origination Fee | 0.5-1% of loan | Buyer |
| Appraisal | $400-$600 | Buyer |
| Home Inspection | $300-$500 | Buyer |
| Title Search & Insurance | $1,000-$2,500 | Split |
| Survey | $350-$500 | Buyer |
| Recording Fees | $50-$150 | Buyer |
| Prepaid Property Tax | 2-6 months | Buyer |
| Prepaid Insurance | 12 months | Buyer |
| Escrow Setup | 2 months taxes + insurance | Buyer |
Texas-Specific Considerations
Texas does not have a transfer tax or documentary stamp tax, which saves buyers money compared to many other states. However, Texas property tax rates are among the highest in the nation (averaging 1.8%), which means your prepaid tax escrow will be substantial.
Texas also has unique title insurance regulations -- rates are set by the state, so you will pay the same premium regardless of which title company you choose. This means you can focus on service quality rather than price shopping for title insurance.
How to Reduce Closing Costs
- Negotiate seller concessions: In the current market, many sellers will contribute 2-6% toward buyer closing costs
- Compare lender fees: Origination fees and processing charges vary significantly between lenders
- Ask about lender credits: A slightly higher rate can sometimes get you thousands in closing cost credits
- Time your closing: Closing at the end of the month reduces prepaid interest charges
- Use Texas assistance programs: Some programs cover closing costs in addition to down payment
Plan Ahead
Use our mortgage calculator to estimate your total costs and make sure your budget accounts for closing expenses. Check our resources for Texas-specific programs that can help cover these fees.