Last updated: March 2026
Typical closing costs
$4,000–$10,000
Median home price
$334,000
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Texas has no state, county, or city transfer tax — one of only about 13 states with no real estate transfer tax at any level. Title insurance rates are set by the Texas Department of Insurance (TDI) and are identical at every licensed title company; shopping around saves nothing on the premium. Texas lenders almost always require a property survey, which is a significant line item. Property taxes are high in major metros — most DFW, Houston, and Austin-area properties run 1.6%–2.2% annually, which inflates escrow requirements at closing. Not an attorney state; closings are handled by title companies.
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Before you get to the Closing Disclosure, your Loan Estimate is your first chance to catch overcharges and compare lenders.
Texas title insurance rates are fixed by TDI — every LE you receive should show the same title insurance premium. If one lender's LE shows a different title premium than another, it's an error. The owner's policy rate is $4.94/K and the simultaneous lender's policy is a flat $100. Use this to quickly sanity-check every Texas LE you compare.
The survey fee is a real variable on Texas LEs. Most Texas lenders require a current survey — typically $700–$1,300. Ask each lender whether a new survey is required before you receive your LE, and whether the seller's existing survey with a T-47 affidavit would satisfy their requirement. A $700 variance here can meaningfully affect comparisons.
Texas has no transfer tax, so your LE won't have that line item. But the escrow section can be surprisingly large due to Texas property taxes. In DFW, Houston suburbs, and Austin-area MUD communities, combined effective tax rates of 1.9%–2.5% mean your lender may collect $2,000–$5,000 in upfront escrow reserves at closing. Always verify the property-specific tax rate — not just the county rate — before relying on the LE estimate.
Watch for discount points on Texas LEs. At current rates, buying down the rate costs roughly $3,300 per point on a $330,000 loan and saves about $55/month. The breakeven is typically 5 years or more. Texas buyers who plan to refinance or sell within that window should choose the no-points option regardless of the rate difference.
No mortgage recording tax in Texas means your LE won't have a loan-amount-based tax line. This is a genuine cost advantage over Florida, Georgia, and New York. When comparing LEs from lenders across states, Texas buyers typically see lower required cash at closing for the same loan amount — the main variable is lender origination fees, which are the most negotiable item.
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Check my Loan Estimate →Typical ranges for a home purchase in Texas. Exact amounts depend on purchase price, county, and lender.
| Fee |
|---|
| Owner's title insurance (TDI promulgated rate)Buyer · No — rate fixed by TDI |
| Lender's title insurance (simultaneous issue)Buyer · No — flat $100 when issued with owner's policy |
| Survey feeBuyer · Slightly — required by most lenders |
| Recording feesBuyer · No — set by county |
| Lender origination feeBuyer · Yes — most negotiable item at closing |
| HOA resale certificate (if HOA)Seller · Set by HOA — required by TX law |
| HOA transfer fee (if HOA)Buyer · Set by HOA governing documents |
| Flood determination certificateBuyer · No — lender required, ~$25 |
| Prepaid property taxes (escrow)Buyer · No — based on local tax rate |
| Homeowners insurance prepaidBuyer · Yes — shop carriers |
Title insurance rates are fixed by TDI — any charge above the promulgated rate is an error. Lender origination fees are the most negotiable item on a Texas Closing Disclosure.
Closing-cost benchmarks from 161,588 verified Texas closing disclosures — typical lender median is $8,365.
Many of the fees listed above also appear on your Loan Estimate — the document your lender must provide within 3 business days of your mortgage application. Comparing Loan Estimates from multiple lenders is the single best way to reduce closing costs. Check if your Loan Estimate fees are competitive →
Origination Fee
Negotiable · Section A
Processing Fee
Negotiable · Section A
Underwriting Fee
Negotiable · Section A
Title Insurance
Negotiable · Section C
Appraisal Fee
Non-negotiable · Section B
Recording Fee
Non-negotiable · Section E
Transfer Tax
Non-negotiable · Section E
Attorney Fee
Negotiable · Section C
Courier Fee
Negotiable · Section H
Credit Report Fee
Non-negotiable · Section B
Flood Certification Fee
Non-negotiable · Section B
Tax Service Fee
Non-negotiable · Section B
Wire Transfer Fee
Negotiable · Section H
Document Preparation Fee
Negotiable · Section A
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Title insurance rates are set by the Texas Department of Insurance and are non-negotiable — every licensed title company must charge exactly the same premium. The current owner's policy rate for most purchases is $4.94 per $1,000 of purchase price (updated March 2026 per TDI Order 2025-9697). When you purchase both owner's and lender's policies at the same closing, the lender's policy is a flat $100 regardless of loan size. Compare title companies on service and turnaround time, not price.
Texas has no transfer tax at any level — no state, county, or city tax on the sale of real property. This is a meaningful savings compared to most states. On a $334,000 purchase in Pennsylvania, buyer and seller might split $6,680 in transfer taxes. In Texas, that line item is $0.
A survey is required for nearly every Texas residential closing. Most lenders and title companies require a current survey to issue title insurance. In established neighborhoods, a seller's existing survey may be reusable with an affidavit — ask early. Budget $700–$1,300 for a standard residential boundary survey; Austin and Houston trend toward the high end.
Texas property taxes are significantly above the national average. Most major metro areas (DFW, Houston suburbs, Austin) carry effective rates of 1.6%–2.2% when all layers — school district, city, county, and MUD/PID where applicable — are included. At closing, your lender collects 2–6 months of prepaid taxes into escrow. On a $334,000 home at 1.9%, expect $530/month in property taxes and $1,000–$3,000 in upfront escrow funding.
Many Houston-area suburbs sit within Municipal Utility Districts (MUDs) or Public Improvement Districts (PIDs). These levy additional property taxes of 0.5%–1.5% on top of the standard rate, pushing combined effective rates to 2%–2.5% or higher. Always verify the full tax rate for any MUD/PID property before committing — it will be on your Closing Disclosure and will significantly affect your monthly payment.
Texas buyer closing costs typically run $4,000–$10,000 depending on purchase price, county, and lender fees. The biggest variables are the lender origination fee (which can range from $0 to 1%+ of the loan), title insurance (fixed by TDI at $4.94/K for most purchases), and survey fee ($700–$1,300). Texas has no transfer tax, which keeps costs lower than many comparable states.
No. Texas has no real estate transfer tax at the state, county, or city level. This applies statewide — including Austin, Houston, Dallas, and San Antonio. It is one of roughly 13 states with no transfer tax at any governmental level, and represents a significant savings compared to states like New York, New Jersey, and Pennsylvania.
No. Title insurance rates in Texas are set by the Texas Department of Insurance (TDI) and are identical at every licensed title company. The current owner's policy rate is $4.94 per $1,000 of purchase price (effective March 2026, TDI Order 2025-9697). You cannot negotiate the premium. You can, however, compare companies on service quality, turnaround, and ancillary fees.
When you purchase both an owner's title policy and a lender's title policy at the same closing, the lender's policy is a flat $100 regardless of your loan amount (required by TDI Rule R-5). On a $300,000 loan, the standard lender's policy rate would be approximately $1,482 — the simultaneous issue rule reduces it to $100. Always purchase both policies together.
Usually yes. Most Texas lenders require a current survey as a condition of issuing title insurance. If the seller has a recent survey (typically within 5–10 years), your lender may accept it with a T-47 affidavit signed by the seller. Budget $700–$1,300 for a new residential boundary survey if needed. Urban markets like Austin and Houston trend toward the high end.
Municipal Utility Districts (MUDs) are special taxing districts common in Houston's outer suburbs and new developments. They levy additional property taxes of 0.5%–1.5% on top of standard rates, often pushing combined effective rates to 2%–2.5%+. At closing, your lender will escrow for the full combined rate — significantly increasing your prepaid escrow deposit and monthly payment. Always verify the specific MUD/PID tax rate before committing to a purchase.
No. Texas is not an attorney state. Closings are handled by licensed title companies. You may hire a real estate attorney if you choose, but it is not required and is uncommon for standard residential purchases in Texas.
Texas closing costs average about 1.5% of the purchase price — near the national average. The absence of a transfer tax is a meaningful advantage, but above-average property taxes drive up prepaid and escrow requirements at closing. Compared to high-tax states like New York, New Jersey, and Pennsylvania, Texas buyers save thousands on transfer-related taxes.
Compared to neighboring states: Oklahoma has no transfer tax and lower property taxes, making it cheaper to close overall. Louisiana charges a minor documentary tax but has far lower property taxes. New Mexico has no transfer tax but lower home prices and lower title insurance costs. All three have lower property tax burdens than Texas, reducing escrow requirements.
Within Texas, Austin and its suburbs have seen the sharpest price increases since 2020, pushing absolute closing costs higher even as rates stay the same. Houston's outer-ring MUD communities carry the highest property tax burdens — often 2.0%–2.5% combined — significantly inflating escrow requirements compared to Dallas or inner-loop Houston properties at similar purchase prices.
My First Texas Home (TSAHC) is the Texas State Affordable Housing Corporation program for first-time buyers and buyers who haven't owned in 3 years. It offers fixed-rate mortgages with down payment and closing cost assistance up to 5% of the loan amount as a deferred second mortgage. Income and purchase price limits apply by county.
The Texas Veterans Land Board (VLB) offers below-market mortgage rates for Texas veterans and active-duty military. Some VLB programs include assistance with closing costs. If you have qualifying military service, check eligibility at texvet.org before your closing.
Sellers can and do cover buyer closing costs in Texas. TREC contracts have a standard line for seller contributions — in a balanced or buyer's market, asking the seller to cover $3,000–$7,000 of your closing costs is common. This is especially useful for offsetting the survey fee and prepaid escrow items.
Texas has no state income tax, which improves take-home pay — but high property taxes can offset much of that advantage. Before comparing Texas affordability to other states, run a full cost-of-ownership calculation including property taxes, HOA fees, and any MUD or PID levies for the specific property.
Refinancing in Texas typically costs $3,000 to $6,000. Texas has no transfer tax at any level and no mortgage recording tax, so your loan amount triggers no government tax at closing — one of the cleanest refinance cost profiles in the country. Watch for a Texas-specific consideration on cash-out refis: Article XVI, Section 50(a)(6) caps fees at 2% of the loan amount and imposes a 12-day waiting period before close. Rate-and-term refinances do not have this fee cap.
For the full refinance guide tailored to Texas — including the title reissue discount, lender-fee benchmarks, and Texas-specific cash-out rules — see the dedicated Texas refinance page at /refinance/texas.
Nearby states: Arkansas · Louisiana · New Mexico · Oklahoma
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