Shopping for a home in Fort Worth and wondering how much you will need beyond the down payment? Closing costs can catch buyers off guard if you have not seen a clear breakdown. The good news is that most items are predictable once you know the Texas rules and your lender’s requirements. In this guide, you will learn what typical buyer costs look like in Tarrant County, what is negotiable, and how to estimate your cash to close with confidence. Let’s dive in.
What closing costs include in Tarrant County
Closing costs are the one-time fees and prepaids due when you finalize the purchase. While every deal is unique, most buyers see a mix of these items:
- Loan-related fees
- Origination or application fee charged by your lender.
- Optional discount points if you choose to buy down your interest rate.
- Credit report, underwriting, and processing fees.
- Third-party services required by your lender
- Appraisal fee, often several hundred dollars.
- Flood certification if applicable.
- Title search, title exam, escrow or closing fee, and the lender’s title insurance policy.
- Survey fee if required or if a new survey is needed.
- Government and recording fees
- Tarrant County recording and deed fees. These are typically modest compared to other costs.
- Prepaids, escrows, and prorations
- First-year homeowners insurance premium, usually paid at closing.
- Prepaid interest from the funding date to month-end.
- Property tax prorations so the seller is credited for their time of ownership and you take over after closing.
- Initial escrow deposits for taxes and insurance, often 1 to 2 months of reserves depending on your loan.
- Inspections and reports
- General home inspection, termite/WDI, septic or well inspections if applicable. These are usually paid before closing and may not appear on the closing statement.
- HOA and condo items
- HOA transfer or processing fees, estoppel letters, and document fees if the property is within an association.
- Miscellaneous
- Courier, notary, wire transfer, and move-in fees where applicable.
As a general rule of thumb, buyers often budget 2%–5% of the purchase price for closing costs, not including the down payment. Your lender’s Loan Estimate will give you a transaction-specific number early in the process.
Texas rules that shape your closing
Understanding Texas customs helps you budget for the right items and spot negotiation opportunities.
- No state transfer tax in Texas. Unlike many states, Texas does not charge a state real estate transfer tax. That removes one common line item from your closing.
- Title insurance custom. In Texas, it is customary for the seller to pay for the owner’s title insurance policy. The buyer typically pays for the lender’s title policy and loan-related title charges. This is custom, not law, and it can be negotiated.
- Regulated title premiums. Title insurance rates in Texas are regulated by the state. Premiums depend on the purchase price and coverage chosen. Ask the title company for an exact premium estimate for your property.
- Tarrant County recording fees. The county charges recording and clerk fees based on the documents recorded. These are modest compared to other costs and will be itemized by the title company.
- Property tax proration. Taxes are typically prorated at closing. The seller is credited for taxes covering the period they owned the home, and you assume responsibility after the closing date. The title company uses local valuation and tax rates to calculate your prorations.
How much to budget
Start with the general range of 2%–5% of the purchase price for closing costs. Your actual number depends on loan type, lender pricing, title charges, insurance, escrow deposits, and whether you choose to pay points.
To ground your budget, ask your lender for a Loan Estimate and your title company for a preliminary fee sheet once you are under contract. Those two documents will anchor the final figure that appears on your Closing Disclosure.
Illustrative examples
These examples are for planning only. Your numbers must come from your lender and title company.
Example A: Purchase price $300,000
- Estimated total closing costs at 2.5%: $7,500
- Loan origination and lender fees: $2,250 (about 0.75%, varies by lender)
- Appraisal: $450
- Title, escrow/closing fee, and lender’s title policy: $1,200
- Recording and county fees: $150
- Homeowners insurance (first year): $1,000
- Prepaid interest and initial escrow deposits: $1,800
- Inspections and other pre-closing items: $650
Example B: Purchase price $500,000
- Total closing costs may reach 3%–5% ($15,000–$25,000) depending on mortgage costs, points, insurance, and escrow requirements.
Remember, earnest money is not an extra cost if you close. It is an advance deposit that is credited toward your down payment and closing funds on the final statement.
What you pay before closing
Some items are paid outside of closing and may not appear on your Closing Disclosure:
- General home inspection and any specialty inspections.
- Termite/WDI inspection and, if applicable, septic or well testing.
- Appraisal fees may be collected by the lender upfront or at closing, depending on lender policy.
- HOA document or rush fees if ordered early.
Keep receipts and confirm what will be credited at closing. Your earnest money deposit should appear as a credit on the settlement statement.
What is negotiable in Fort Worth
Several cost items can be negotiated to reduce your cash to close or align costs with your priorities.
- Owner’s title policy. Custom favors the seller paying for the owner’s title policy, but this can change with market conditions and price point. Ask your agent what is typical for your segment today.
- Seller concessions. You can request a seller credit toward your closing costs. Acceptable amounts and limits depend on the loan program and the property. Check program caps with your lender.
- Escrow and recording splits. Escrow or settlement charges, notary, courier, and recording fees are often split. The split is negotiable.
- Repair credits vs. repairs. After inspections, you and the seller may agree to a credit at closing rather than completing repairs ahead of time. This can change your cash due at closing.
- Financing strategies. Lender credits, financing certain costs into the loan when allowed, or so-called no-closing-cost loan options can reduce upfront cash. These shift costs into the interest rate or loan balance, so review long-term tradeoffs with your lender.
- Assistance programs. First-time buyers may qualify for down payment or closing cost assistance through local or state programs. Availability and eligibility change, so explore options with local housing agencies.
Simple timeline and checklist
Use this quick timeline to keep your closing on track and your budget accurate.
Early: before you make an offer
- Get preapproved and ask your lender for a sample Loan Estimate for your chosen loan type.
- Ask your agent for recent, comparable examples of buyer-paid closing costs in Fort Worth at your price point.
After your offer is accepted
- Request an itemized title estimate from the Fort Worth title company handling your escrow.
- Schedule inspections and pay those fees when due.
- Confirm who will pay for the owner’s title policy and whether any seller credits are negotiated.
- Discuss survey needs. If a new survey is required, plan for that fee.
A week to a few days before closing
- Review your Closing Disclosure. You must receive it at least three business days before signing.
- Verify the final cash-to-close number and plan your wire or certified funds.
- Call to confirm wire instructions directly with the title office to avoid fraud.
- Confirm prepaid interest for your funding date and the exact escrow deposits required by your lender.
Closing day
- Bring a government-issued ID and any remaining funds per the Closing Disclosure.
- Confirm that your earnest money and any seller credits are correctly applied on the final statement.
How property taxes and insurance affect cash to close
Texas property taxes are prorated at closing. The seller is credited for their share of the year based on the closing date, and you assume responsibility for the remainder. Your lender may also require an initial escrow deposit for taxes and insurance, typically equal to 1 to 2 months of reserves. You will also pay the first year of homeowners insurance, which is often due at closing.
Prepaid interest covers the period from funding to the end of the month. The exact amount depends on your closing date and loan terms. Ask your lender to walk through how this will appear on your Loan Estimate and Closing Disclosure.
Title insurance in Texas: what to know
Title insurance premiums are set by the state, which means different title companies will quote the same base premium for the same price point and coverage. In many Fort Worth transactions, the seller pays the owner’s policy by custom, while you pay for the lender’s policy and related title charges. Because premiums are standardized and coverage options matter, request an exact estimate from the title company once you are under contract.
HOA and condo considerations
If the property is in an HOA or condominium association, plan for transfer or processing fees. You may also see charges for estoppel letters or community documents. These costs vary by association and will be disclosed in your HOA packet or by the title company during escrow.
Protect your funds: wire safely
Wire fraud is a real risk in real estate. Before sending any funds, call your title company at a verified number and confirm instructions with a known contact. Do not rely on email alone for sensitive wiring details.
Final thoughts
Closing costs do not have to be a surprise. When you know the Texas customs, request early estimates from your lender and title company, and use the contract to negotiate smartly, you can enter closing day with clarity and confidence. If you want a local, senior-level partner to help you benchmark costs and avoid pitfalls across Fort Worth’s top submarkets, we are here to help.
Have questions about your next move or a specific property? Connect with the Willoughby Agency to review your numbers and options. Schedule a Private Consultation.
FAQs
How much cash do Fort Worth buyers typically need at closing?
- Most buyers plan for 2%–5% of the purchase price in closing costs, not including the down payment. Your Loan Estimate and title fee sheet will provide precise figures.
Who usually pays for the owner’s title policy in Texas?
- In Texas, it is customary for the seller to pay for the owner’s title insurance policy. The buyer pays the lender’s policy and loan-related title charges. This is negotiable.
Does Texas charge a real estate transfer tax?
- No. Texas does not have a state real estate transfer tax, which removes a common closing line item you might see in other states.
Which items are paid before closing, not on the Closing Disclosure?
- Inspections are usually paid upfront. Earnest money is deposited earlier and credited at closing. Some lenders may also collect the appraisal fee before closing.
How are property taxes handled at closing in Tarrant County?
- Taxes are typically prorated so the seller pays for their time of ownership and you pay for the remainder of the year. Confirm the exact proration method with your title officer.
Can seller credits or lender programs reduce my cash to close?
- Yes. You can negotiate seller concessions, request lender credits, or consider options that roll some costs into the loan when allowed. Limits depend on your loan program.
