Closing costs can feel like a moving target, especially when you’re trying to budget for an Irving home purchase or sale. You want clear numbers, local norms, and a simple way to estimate your bottom line. In this guide, you’ll learn who typically pays what in Texas, what the major fees cover, and how Irving area details can affect your final figures. You’ll also see straightforward examples you can use to plan your cash to close. Let’s dive in.
Closing costs in Texas: What’s included
Closing costs are the one-time fees and prepaids due at settlement. In Texas, buyers usually pay about 2% to 5% of the purchase price, and sellers often pay about 6% to 10% of the sales price when agent commissions are included. The exact total depends on loan type, rate options, escrow deposits, and negotiated items in your contract.
Typical totals for Irving buyers
Most Irving buyers can expect a range of 2% to 5% of the purchase price for lender fees, title/escrow, reports, and prepaids. You may see higher costs if you choose discount points to lower your interest rate or if your lender collects larger escrow reserves for taxes and insurance. All-cash buyers are usually at the lower end since there’s no mortgage-related cost.
Typical totals for Irving sellers
Most Irving sellers see 6% to 10% of the sales price go to costs, largely due to real estate commissions that are often around 5% to 6% combined. In Texas, it’s customary for the seller to pay for the owner’s title insurance policy. Sellers are also responsible for prorated property taxes through the closing date, any HOA transfer fees they agree to cover, and paying off existing liens. Texas has no transfer tax, which removes a common cost seen in other states.
Who pays what in Irving
Buyer-paid items (commonly)
- Loan origination and lender fees: typically 0.5% to 1.5% of the loan amount or flat fees.
- Discount points (optional): 1% of loan amount per point to buy down your rate.
- Appraisal: usually $400 to $700 for a single-family home in the Dallas area.
- Credit report: typically $30 to $60.
- Title search/exam and lender’s title policy: search $150 to $400; lender policy often 0.2% to 0.5% of the loan amount.
- Escrow/settlement/closing fee: about $300 to $1,000.
- Recording fees: often $20 to $200, depending on documents.
- Survey (if required): typically $300 to $900.
- Home inspection: usually $300 to $600; specialty inspections are extra.
- HOA-related buyer items (if applicable): some HOAs charge $100 to $400 for move-in or transfer paperwork.
- Prepaids: first-year homeowners insurance (often $800 to $2,000), prorated mortgage interest, and initial escrow deposits (often about 2 months of taxes and insurance, varies by lender).
Seller-paid items (commonly)
- Real estate commissions: largest cost, often 5% to 6% of the sales price combined.
- Owner’s title insurance policy: customarily paid by the seller in Texas; premium is based on price and regulated, often about 0.5% to 1% as a rough ballpark.
- Prorated property taxes through the closing date.
- Payoff of existing mortgage(s) and any liens.
- Recording, deed prep, and release fees as applicable.
- Repairs, concessions, or credits agreed to in the contract.
- HOA transfer or estoppel fees, depending on the HOA and contract terms.
Irving and Dallas-area nuances to know
- Property tax calendar: Dallas County taxes are billed annually and prorated at closing. Check assessed values and timing when you set your escrow deposits.
- Special districts: Some North Texas neighborhoods are in Municipal Utility Districts (MUDs) or similar districts. These can increase annual taxes and affect escrow planning.
- HOAs: Many Irving communities have HOAs. Estoppel letters and transfer documents can take time and carry fees. Build this into your timeline.
- Title company closings: Title companies commonly serve as the escrow agent in Texas. Request a written, itemized title quote early.
- Surveys: Confirm whether a prior survey and T-47 affidavit are acceptable or if you’ll need a new one. Verify this early to avoid delays.
- Recording fees: Fees vary by document and county. Your title company will estimate these once they know your loan and document count.
Real-world Irving examples
Below are simple illustrations to help you plan. Actual figures will come from your lender, title company, and final settlement statement.
Example A: Lower-price Irving home
- Purchase price: $275,000
- Buyer
- Down payment (10%): $27,500
- Closing costs (3%): $8,250
- Prepaids and escrow deposits: about $3,000
- Less earnest money: -$5,000
- Estimated cash to close: about $33,750
- Seller
- Commissions (6%): $16,500
- Owner’s title policy and closing fees: about $2,000
- Prorated taxes/other: about $1,500
- Net proceeds are the sale price minus these costs and any mortgage payoff
Example B: Mid-price Irving home
- Purchase price: $425,000
- Buyer
- Down payment (10%): $42,500
- Closing costs (3%): $12,750
- Prepaids and escrow deposits: about $4,500
- Less earnest money: -$5,000
- Estimated cash to close: about $54,750
- Seller
- Commissions (6%): $25,500
- Owner’s title policy and closing fees: about $3,500
- Prorated taxes/HOA: about $2,500
- Net proceeds depend on mortgage payoff and final prorations
Example C: Higher-price Irving home
- Purchase price: $750,000
- Buyer
- Down payment (10%): $75,000
- Closing costs (3%): $22,500
- Prepaids and escrow deposits: about $8,000
- Less earnest money: -$10,000
- Estimated cash to close: about $95,500
- Seller
- Commissions (6%): $45,000
- Owner’s title policy and fees: about $6,000
- Prorated taxes/assessments: about $4,500
Notes on these examples:
- Choosing a lender credit can reduce cash to close, while paying discount points increases it.
- Down payment, loan program (FHA, VA, conventional), and credit profile can change totals.
- Earnest money varies by market conditions and negotiation.
- Commission rates are negotiated and affect the seller’s net.
How to estimate your cash to close
Use a simple formula to keep things clear:
- Cash to close = Down payment + Closing costs + Prepaids/Escrow deposits + Other agreed items – Earnest money deposit
Then follow these steps:
- Ask your lender for a Loan Estimate within three business days of application. Compare two or three lenders for rates, points, and credits.
- Request an itemized title quote early for premiums, endorsements, escrow/closing fees, and expected recording fees.
- Confirm who pays for the owner’s title policy in your contract. In Texas, seller-paid is customary but negotiable.
- Build a small buffer. Plan for last-minute prorations or HOA utilities. A 1% to 2% contingency helps avoid surprises.
- Reconcile with the Closing Disclosure at least three business days before closing. Review line items, ask questions, and confirm your wire amount.
Timing and risk checks
- Appraisal and inspections: Schedule quickly to protect your closing date and avoid extra mortgage interest prepaids.
- HOA documents: Order promptly. Estoppel delays can push closing.
- Survey status: Verify early. If a new survey is needed, schedule it with time to spare.
- Wire safety: Always confirm wiring instructions by phone with your title company using a verified number to avoid fraud.
Seller strategies to protect your net
- Price and commission planning: Know how adjustments to commission affect your bottom line in today’s market. Weigh potential savings against marketing reach.
- Repair decisions: Address clear issues early or set a fair credit to prevent last-minute renegotiation.
- Mortgage payoff: Get an updated payoff letter and confirm any release or recording fees.
- Tax and HOA prorations: Review estimated prorations and any assessments so you can plan proceeds accurately.
A smooth closing starts with clarity. If you want a personalized estimate tailored to your Irving property, reach out. The Donna and Gail Team pairs decades of DFW experience with clear communication so you can move forward with confidence. Connect with Donna Jobe to get started today.
FAQs
Who pays title insurance in Texas?
- Customarily, the seller pays for the owner’s title policy and the buyer pays for the lender’s policy, but this is negotiable in your contract.
Are there transfer taxes on home sales in Irving?
- No. Texas does not impose a real estate transfer tax, which removes a line item you might see in other states.
What should buyers bring to an Irving closing?
- Bring a government-issued ID and your verified cash-to-close via wire or certified funds; your closing agent will handle document signing and disbursement.
When will I know my exact closing costs?
- Your lender provides a Closing Disclosure at least three business days before closing and the title company issues the final settlement statement with exact figures.
Can buyers roll closing costs into the loan in Texas?
- Some costs can be financed or covered by lender credits or seller concessions, subject to loan program rules and contract negotiations.
