real estate
Texas Closing Costs and Cash to Close
Understand lender charges, title services, prepaids, escrow deposits and the final amount a buyer must bring to closing.
Texas buyers often save for a down payment and then discover a second number: cash to close. That total combines the down payment with lender charges, title and settlement services, prepaid interest, insurance, tax-related deposits and other transaction costs.
Closing costs versus cash to close
Closing costs are the fees and prepaid amounts tied to completing the transaction. Cash to close adds the down payment and subtracts earnest money, credits and adjustments already applied.
Common categories
- Loan charges such as origination, underwriting, points, appraisal and credit report.
- Title and settlement services.
- Government recording charges.
- Prepaid interest and the first insurance policy term.
- Initial escrow deposits for taxes and insurance.
- Survey, inspection, HOA documents and contract-specific charges.
Use the federal forms
Compare the Loan Estimate and Closing Disclosure. Focus on rate, APR, points, lender credits, origination charges, services you can shop for and projected payment. Verify wire instructions independently through a trusted phone number.
Keep a post-closing reserve. Moving, utility deposits and the first repair do not wait for the household budget to recover.
- closing costs
- cash to close
- loan estimate
- homebuyer
Keep reading