Trying to budget for your Fort Worth home purchase and not sure how much cash you will need at closing? You are not alone. Closing costs can feel confusing, especially when fees come from different companies and show up late in the process. In this guide, you will learn what closing costs cover, how much to plan for in Tarrant County, who pays what in Texas, and practical ways to reduce your out‑of‑pocket total. Let’s dive in.
What closing costs include
Closing costs are the one‑time fees and prepaids you pay at the closing table to complete the purchase and fund your loan. They are separate from your down payment. They cover lender charges, title and settlement services, county recording fees, prepaid taxes and insurance, and a few other line items tied to your specific property and loan.
You pay some of these directly. Others are paid by the seller or split, depending on your contract. The exact breakdown depends on your loan type, lender pricing, title company fees, property taxes, and any negotiated credits.
How much Fort Worth buyers typically pay
As a planning rule, expect buyer closing costs to total about 2% to 5% of the purchase price when you are paying customary buyer items. The range is wide. It changes with your loan program, lender fees, title charges, prepaids, and any seller concessions that reduce your cash to close.
For example, on a $300,000 home, 2% to 5% equals about $6,000 to $15,000. Your number could be higher or lower. You will get early estimates from your lender and more precise figures as you approach closing.
Line items you will likely see
Lender and loan fees
- Origination or lender processing fee. This may be a percentage of the loan or a flat fee and varies by lender and program.
- Discount points. Optional points cost 1% of the loan amount per point to lower your interest rate.
- Underwriting and processing. Often $300 to $1,000 combined.
- Appraisal. Commonly $400 to $800 for a single‑family home. Complex properties can be higher.
- Credit report. Typically $25 to $60.
- Flood determination. Often $10 to $20.
- Prepaid interest. Covers the interest due from your closing date to month end.
Title and settlement charges
- Owner’s title insurance policy. In Texas, it is customary for the seller to pay for the owner’s title policy, though this is negotiable.
- Lender’s title insurance policy. Buyers typically pay this premium, which is based on the loan amount.
- Title search, exam, and settlement fee. The title company charges for closing services, often several hundred to over $1,000 depending on the file.
- Endorsements. Your lender may require additional title endorsements at an added cost.
Government and county fees
- Recording fees. The Tarrant County Clerk collects small per‑document fees to record the deed and deed of trust.
- Transfer taxes. Texas does not have a state real estate transfer tax.
Prepaid taxes and insurance
- Property taxes. Texas property taxes are paid annually. At closing, taxes are prorated so each party pays their share for the year based on the closing date. Your lender may collect initial escrow reserves, commonly about two months of taxes and insurance, to fund your escrow account.
- Homeowner’s insurance. Lenders often require your first year’s premium to be paid at or before closing.
HOA, survey, and inspections
- HOA transfer or estoppel fees. If the home is in an HOA, you may see a transfer or estoppel fee; amounts often range from under $100 to several hundred dollars. Who pays is negotiable.
- Survey. If required, expect $300 to $1,200 depending on lot size and complexity. A recent acceptable survey may be reused if your lender allows it.
- Home inspection and termite/WDI. Usually paid before closing. Home inspections commonly run $300 to $600; termite inspections $50 to $150.
Who pays what in Texas
Customs vary by market, but in Tarrant County you will commonly see these patterns in a Texas Real Estate Commission (TREC) contract:
- Sellers often pay:
- Owner’s title insurance policy.
- Real estate broker commissions.
- Payoff of any seller liens and agreed seller concessions.
- Title curative work needed to deliver marketable title.
- Buyers often pay:
- Lender charges, including any points and the lender’s title policy.
- Appraisal, credit report, and flood determination.
- Survey, unless otherwise negotiated.
- Inspections.
- Prepaids like the first year of insurance, property tax prorations, prepaid interest, and initial escrow deposits.
- Recording fees for the deed of trust, unless negotiated otherwise.
- Negotiable items:
- Seller‑paid buyer costs through concessions, within loan program limits.
- HOA transfer fees and other title fees.
The TREC contract also includes an option fee and earnest money. The option fee gives you an option period for inspections and is typically credited to you at closing if you proceed. Earnest money is held in escrow and applied per the contract. Always review your signed contract to confirm who pays each item.
Timeline, disclosures, and buyer protections
Federal rules provide clear timelines and documents so you can review costs in advance:
- Your lender must send a Loan Estimate within 3 business days of your mortgage application. It outlines projected closing costs and your estimated cash to close.
- At least 3 business days before closing, your lender must send a Closing Disclosure with the final figures. Compare it to your Loan Estimate and ask about any differences.
- Some lender fees have limits on how much they can change from the estimate. If something looks off, ask your lender and the title company to explain.
Locally, the Tarrant County Clerk records the deed and deed of trust to finalize the change in ownership and the loan. After closing, you should review tax mailings from the appraisal district and apply for any exemptions you may be eligible for, such as a homestead exemption.
How to estimate your cash to close
Use this simple process to build a clear number early:
- Request Loan Estimates from at least two lenders on the same day so you can compare identical line items.
- Ask the title company for a fee quote for title insurance, settlement, and recording based on your price range and loan type.
- Get a homeowner’s insurance quote so you can budget for the first year’s premium and escrow set‑up.
- Ask your lender to estimate escrow reserves for taxes and insurance using current tax rates.
- Pick a tentative closing date and have your lender estimate prepaid interest for that month.
- Add a small buffer for HOA fees, survey, and inspections based on the property type.
This gives you a realistic picture long before you write an offer.
Smart ways to lower your out‑of‑pocket costs
You have more control than you may think. Consider these strategies:
- Shop and compare lenders. Compare origination fees, points, and credits side by side using the Loan Estimate.
- Negotiate seller concessions. You can ask the seller to cover specific buyer costs, subject to loan program limits.
- Ask for lender credits. A slightly higher interest rate can create a credit that reduces your cash to close.
- Roll certain costs into the loan. Some fees can be financed if your lender and program allow it, which increases your loan amount.
- Use assistance programs. Look for Texas or local down payment and closing‑cost assistance. Check your eligibility with your lender.
- Limit optional fees. Ask which title fees and endorsements are required by your lender and compare settlement fees across title companies.
- Plan your inspections early. Early inspections and estimates can help you negotiate repairs or credits without last‑minute surprises.
Discuss these options with your lender and agent so you understand tradeoffs and program rules.
Fort Worth buyer tips you can use now
- Budget using the 2% to 5% rule for closing costs, then refine with lender and title quotes.
- Remember Texas’s customary split: sellers often pay the owner’s title policy; buyers usually pay lender fees, the lender’s title policy, and prepaids.
- Expect escrow set‑up for taxes and insurance. Your lender commonly collects about two months of reserves at closing.
- Do not forget prorated property taxes and HOA items if applicable. These can change your final cash to close.
Quick closing cost checklist
- Get at least two Loan Estimates from lenders.
- Request a title fee quote and confirm who pays each title policy.
- Obtain a homeowner’s insurance quote and confirm the first year’s premium.
- Ask about escrow reserves for taxes and insurance.
- Plan for appraisal, credit report, flood determination, and prepaid interest.
- Confirm survey needs and cost sharing.
- Schedule inspections and set aside funds for them.
- Negotiate seller concessions early and document them in the contract.
- Review the Closing Disclosure at least 3 business days before closing and ask questions.
Work with a local guide you can trust
Understanding closing costs is the first step. Structuring them well is how you protect your cash and keep the process smooth. With a hands‑on, finance‑minded approach and deep Tarrant County experience, our team can help you compare lender quotes, negotiate smart concessions, and avoid last‑minute surprises.
Ready for a clear, custom closing cost game plan for your Fort Worth purchase? Reach out to Jason Kramer for practical guidance tailored to your price range and neighborhood.
FAQs
How much will I pay at closing in Tarrant County?
- Most buyers should plan for about 2% to 5% of the purchase price, with your actual number driven by loan type, lender and title fees, taxes, and any seller concessions.
In Texas, who pays for title insurance on a home purchase?
- By custom, the seller pays for the owner’s title policy and the buyer pays for the lender’s policy, though your contract can specify a different arrangement.
Can a Fort Worth home seller cover some of my closing costs?
- Yes, seller concessions are negotiable and common, but loan program rules may cap how much the seller can contribute.
What is the difference between prepaids and closing costs for buyers?
- Prepaids cover future items like your first year of insurance, prepaid interest, and escrow deposits, while closing costs pay for services that make the loan and transfer happen.
Are there transfer taxes when I buy a home in Texas?
- Texas does not have a state real estate transfer tax, though you should expect recording fees and prorated property taxes.
What documents show my closing costs before closing day?
- Your lender must provide a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing with your final figures.
