Closing Costs for Home Buyers
Closing costs for a home buyer typically range from 2% to 5% of the home’s purchase price. The exact amount depends on factors such as the home's price, location, loan type, and lender fees.
Breakdown of Common Closing Costs:
* Loan Origination Fee: 0.5%–1% of the loan amount
* Appraisal Fee: $300–$600
* Home Inspection: $300–$500
* Title Insurance: calculated based on the property's value, and are set by the Texas Department of Insurance
* Escrow Fees: Varies by location
* Property Taxes: Usually prorated for the portion of the year you own the home
* Homeowners Insurance: Typically required upfront for the first year
* Private Mortgage Insurance (PMI): If applicable, may need to pay first month's premium
* Recording Fees: $25–$250
* Attorney Fees: Attorney fees for buying a home in Texas can range from $500 to $3,000, depending on the complexity of the transaction.
Your Real Estate Agent can often negotiate with the seller to cover part of the closing costs (seller concessions), especially in a buyer’s market. Some lenders also offer "no-closing-cost loans," where costs are rolled into the interest rate.
