Texas Closing Cost Calculator for Buyers: Estimate Your Costs Before You Make an Offer
The best time to know your closing costs is before you make an offer. Our free Texas closing cost calculator gives you a starting number in minutes, and this guide explains what goes into it.
Estimate Your Texas Closing Costs in Minutes
Cottonwood Title offers a free Texas closing cost calculator for buyers and sellers. Enter your numbers to see a starting estimate before you make an offer, compare loan options or decide how much cash to set aside for closing. Then use this guide to understand each line, and ask for a written estimate once you are under contract.
What Buyer Closing Costs Include in Texas
Lender charges
Origination or underwriting fees, discount points if you buy down your rate, the appraisal and the credit report. These vary by lender, so compare Loan Estimates from more than one.
Title and escrow
The lender's title policy and any endorsements your lender requires, your share of the escrow fee, and county recording fees for the deed and deed of trust.
Prepaid items
The first year of homeowners insurance, interest from your closing date to the end of the month, and the opening deposit into your escrow account for taxes and insurance. Prepaids are not really fees, but they are part of your cash to close.
Other costs
A survey if one is needed, HOA transfer or resale certificate charges if your contract assigns them to you, and inspections you pay for during the option period.
Which Costs the State Sets and Which You Can Compare
Texas title insurance premiums are set by the Texas Department of Insurance, so the basic premium for the same policy is the same at every title company. That makes the title policy one of the easiest lines to estimate from your price and loan amount. Escrow fees, document preparation and other title company charges are not set the same way, so those are worth comparing. Read more in how much title insurance costs in Texas.
Check Who Pays the Owner's Title Policy
In a Texas resale, your contract says whether the buyer or the seller pays for the owner's title policy, and in much of the state the seller pays it. Check your contract before you enter numbers in any calculator, because this one line can make a big difference on a higher-priced home. Our guide to who pays what at a Texas closing covers the usual split.
Credits That Lower Your Cash to Close
Your earnest money is credited toward what you owe at closing, and the option fee is often credited too if your contract says so. Sellers may also agree to pay part of your costs. Because Texas property taxes are paid in arrears, the seller usually credits you for their share of the current year's taxes. Subtract these credits to see your real cash to close. See earnest money and the option fee in Texas for how each one works.
Calculator, Loan Estimate and Closing Disclosure
A calculator gives you a fast starting point before you have a lender or a contract. Your lender's Loan Estimate, due within three business days of your application, adds your loan-specific figures. Your Closing Disclosure, which you must receive at least three business days before closing, shows the final numbers. Run the calculator early, compare it with your Loan Estimate, and ask your title company about any line that looks different.
No Transfer Tax in Texas
Texas has no state transfer tax on real estate, which keeps buyer closing costs lower than in many other states. You will still pay county recording fees.
FAQ
Is the Cottonwood closing cost calculator free?
Yes. The closing cost calculator on our website is free for Texas buyers and sellers to use.
How accurate is a closing cost calculator?
Any calculator gives an estimate, not a quote. Title premiums in Texas follow the state rate schedule, but lender fees, prepaid items, HOA charges and negotiated credits vary from deal to deal. Ask for a written estimate once you are under contract.
How much are buyer closing costs in Texas?
It depends on your price, loan type, lender, county and contract terms, so a single average is rarely useful. Run your own numbers in the calculator to see an estimate for your purchase.
Can I choose my own title company?
Yes. The title company is named in the contract, and buyers can ask for the one they want. See how to choose a title company in Texas.
Get Your Estimate
Try our free buyer closing cost calculator now. When you are ready to close, Cottonwood Title handles residential resale closings across Texas from our offices in Sugar Land and Allen.