Closing costs surprise a lot of buyers because they’re separate from your down payment — real money, due at closing. Here’s what they are and who typically pays.

What closing costs include

Closing costs are the fees to originate the loan and transfer the property. On the buyer side they typically include:

  • Lender fees — origination, underwriting, etc.
  • Appraisal and credit report
  • Title insurance (lender’s policy) and title/escrow fees
  • Survey (common in Texas)
  • Prepaids — prepaid interest, homeowner’s insurance, and the start of your escrow account for taxes/insurance
  • Recording fees and various small third-party charges

Roughly how much?

As a general rule of thumb, buyer closing costs often run somewhere around 2%–5% of the purchase price, depending on the loan, lender, and price point. That’s a ballpark for budgeting — your Loan Estimate gives you the real figures up front.

Who pays what (buyer vs. seller)

In a typical Texas resale transaction:

  • Buyers usually cover their loan-related costs, appraisal, and prepaids.
  • Sellers typically cover their own title-policy costs (the owner’s policy is often a seller expense in Texas, though it’s negotiable) and the real estate commissions.
  • Concessions can shift some buyer costs to the seller — that’s negotiated in the contract (how seller concessions work).

Everything here is negotiable and varies by deal — these are conventions, not rules.

How this fits the bigger number

Closing costs are one component of your total cash to close — along with your down payment and prepaids, minus credits and earnest money. Don’t budget for the down payment alone.

Reduce them where you can

  • Negotiate seller or builder concessions toward closing costs.
  • Ask your lender about lender credits.
  • Shop your lender — fees vary.

Want a realistic all-in cost estimate for a DFW purchase? Reach out.

General educational information, not financial or legal advice. Costs and customs vary by lender, price point, and transaction, and are negotiable. Confirm specifics with your lender and title company.

Thinking about a move in DFW? Mike covers Collin County and the North/East DFW suburbs — buying, selling, new construction, or relocation. Get in touch for a straight, no-pressure conversation.