Are you budgeting for a new home in Hallsville and wondering how much extra you’ll need beyond the down payment? You’re not alone. Closing costs can be confusing, and the totals vary from one home and loan to the next. In this guide, you’ll learn what closing costs include, who usually pays what in Texas, typical ranges to expect, and smart ways to plan your cash to close. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaid items due when you finalize your home purchase. They cover services from your lender, title company, appraiser, inspector, and county offices, plus initial deposits for taxes and insurance.
Typical buyer costs
Common buyer items include lender fees (origination, underwriting), appraisal, credit report, inspections, survey (if required), the lender’s title insurance policy, recording fees, and initial escrow deposits for property taxes and homeowner’s insurance. If the property has an HOA, you may see transfer or estoppel fees.
Typical seller costs
Sellers most often pay real estate commissions, the owner’s title insurance policy in Texas custom, closing or transfer fees, prorated property taxes and HOA dues, and any negotiated concessions or credits to the buyer.
Prepaids vs. fees
Prepaids are funds collected for future bills, such as several months of insurance and a starter balance for your tax escrow. They are not the same as lender or title fees, but they do increase the cash you bring to closing.
Texas rules that shape Hallsville closings
No transfer tax in Texas
Texas does not charge a state real estate transfer tax, so you will not see a state transfer fee at closing.
Title insurance custom and rates
It is customary in Texas for the seller to pay for the owner’s title insurance policy, while the buyer pays for the lender’s policy when there is a mortgage. Title insurance rates are regulated by the Texas Department of Insurance. For an overview of rates and rules, review the Texas Department of Insurance’s title insurance resources.
- Visit the Texas Department of Insurance page for title insurance resources: TDI title insurance
Taxes, prorations, and recording
Property taxes in Texas are billed annually by local taxing entities, and taxes are usually prorated at closing based on the days each party owns the home that year. Harrison County sets recording requirements and fees through the county clerk. Recording fees are typically modest, ranging from tens to low hundreds of dollars depending on the documents.
HOA items to watch
If the Hallsville property sits in an HOA or POA, ask early about transfer fees, estoppel letters, and dues prorations. These can vary widely.
Typical Hallsville buyer ranges
Exact numbers depend on your loan, purchase price, and negotiations, but here are helpful benchmarks:
- Typical buyer closing costs, excluding the down payment: about 2% to 5% of the purchase price for many conventional loan purchases.
- Typical seller closing costs: often 6% to 10% of the sale price when including commissions.
- Title and recording combined: often a fraction of 1% to about 1% depending on price and county fees.
Common line items and ranges
Use these ranges to get oriented, then ask your lender and title company for a customized estimate:
- Loan origination or lender fee: about 0.5%–1.5% of the loan amount, or a flat fee.
- Discount points to lower the rate: optional; 1 point = 1% of the loan amount.
- Appraisal: $400–$800.
- Credit report: $25–$50.
- Underwriting/processing: $300–$1,000 combined.
- Lender’s title policy and related title fees: often ~0.3%–0.7% of the purchase price for the policy, plus title search and recording costs.
- Survey: $300–$1,000 if needed.
- Home inspection (general): $300–$600; termite or other specialty inspections are additional.
- Recording fees: typically tens to low hundreds of dollars.
- Escrow deposits for taxes and insurance: usually 2–3 months of insurance plus a tax escrow deposit; can be several hundred to a few thousand dollars.
- Prepaid interest: depends on your closing date.
- HOA transfer/estoppel: $100–$500 if applicable.
- Courier/wire: $25–$150.
Hypothetical examples
These scenarios are illustrative only. Request a Loan Estimate and an itemized title quote for exact figures.
Buyer example on a $250,000 purchase
Assume a conventional loan at 80% loan-to-value (loan amount $200,000). A mid-range estimate at 3% of price equals $7,500 in buyer closing costs and prepaids. A possible breakdown:
- Loan origination and points: $2,000
- Appraisal: $500
- Title and recording (buyer portion): $1,200
- Inspections (home + termite): $450
- Escrow prepaids (insurance + tax escrow): $2,000
- Misc. (credit report, processing, courier): $350
Cash to close for costs would be about $7,500, plus your down payment.
Seller example on the same sale
A typical seller total might be around 8% of the sale price, or $20,000, including:
- Real estate commission (example 6%): $15,000
- Owner’s title policy and closing fees: $1,200
- Prorated property taxes and HOA dues: $1,500
- Payoff/recording and miscellaneous: $300
- Repairs or negotiated credits: $1,000
In Texas custom, the seller pays for the owner’s title policy. Confirm who pays which items in your purchase contract.
How your loan affects costs
Seller concessions by loan type
Sellers can contribute to your closing costs, subject to loan program limits. Typical caps include:
- Conventional loans: about 3%–9%, depending on your down payment percentage.
- FHA: up to 6%.
- VA: generally up to 4% in concessions, with certain VA-allowable items outside the cap.
- USDA: often up to 6%.
Program rules change, and lenders can overlay stricter guidelines. Confirm the exact allowable contributions with your lender before you negotiate.
Lender credits and rate tradeoffs
You can often choose lender credits to reduce upfront costs in exchange for a slightly higher interest rate. This can lower cash to close, but you will likely pay more interest over time. Ask your lender to model the break-even.
Down payment assistance
Texas offers statewide programs that can help with down payment and closing costs, usually with income and price limits and a required education course. Explore the Texas Department of Housing and Community Affairs homebuyer programs and ask your lender which options fit your situation.
Plan your cash to close
A little preparation goes a long way. Use this quick plan to stay ahead of surprises.
Get pre-approved early
A pre-approval clarifies your price range and shows you a preliminary estimate of closing costs. Within three business days of your loan application, your lender must provide a Loan Estimate that outlines projected fees and cash to close.
Pre-approval document checklist
Your lender may ask for:
- Government photo ID
- Last 2 pay stubs
- Last 2 years of W-2s or 1099s
- Bank statements for all asset accounts (typically 2 months)
- Most recent tax returns if self-employed or if requested
- Documentation for large deposits and gift funds
- Divorce decree or separation agreements if applicable
- Signed purchase contract once you are under contract
Inspections and survey
Schedule your general home inspection and any needed specialty inspections early in your option period. Confirm whether a new survey is required or if a recent one can be used.
Taxes, HOA, and prorations
Ask the title company or listing agent for the current year tax prorations and any HOA transfer fees so your Closing Disclosure reflects accurate amounts.
Closing Disclosure timing
For financed purchases, your lender must provide a Closing Disclosure at least three business days before closing, which shows your final numbers. Learn what to review in the CFPB’s Closing Disclosure guide. Compare it to your Loan Estimate and ask questions right away.
Verify numbers for your Hallsville home
Use these local and state resources to confirm exact fees:
- Harrison County Appraisal District: check property values and taxing jurisdictions used to estimate annual taxes and prorations.
- Harrison County Tax Office: confirm current tax rates, due dates, and any exemptions that may apply.
- Harrison County Clerk: verify recording requirements and current fee schedules.
- Local title company: request an itemized estimate for title premiums, closing fees, and recording charges.
- Your lender: request a fresh Loan Estimate for your precise scenario and ask about seller concession limits.
- Texas Department of Insurance: see regulated title insurance information and consumer resources at TDI title insurance.
- Texas Department of Housing and Community Affairs: review assistance options at TDHCA homeownership programs.
Program rules and county fees can change. Always confirm current limits and rates with your lender, title company, or the Harrison County offices.
Ready to move forward?
Buying in Hallsville should feel exciting, not stressful. With a clear plan, a strong pre-approval, and a detailed look at your closing costs, you can focus on finding the right home and negotiating with confidence. If you want a local guide who blends market know-how with practical, construction-savvy advice, connect with Kylie Hicks. We can introduce trusted lenders, request itemized title quotes, and help you build a clean, accurate cash-to-close plan.
FAQs
What are average closing costs for Hallsville buyers?
- Many buyers see closing costs of about 2% to 5% of the purchase price, not including the down payment; your Loan Estimate will show your specific number.
Who pays for title insurance in Texas?
- It is customary for the seller to pay for the owner’s title policy and the buyer to pay for the lender’s policy; confirm what your contract specifies.
Can a seller pay my closing costs in Hallsville?
- Yes, through concessions; the maximum varies by loan type and lender rules, so ask your lender for the precise limit before you negotiate.
When do I get my final closing numbers?
- Your lender must deliver the Closing Disclosure at least three business days before closing; review it carefully and compare it with your Loan Estimate.
How can I reduce cash to close?
- Consider negotiating seller concessions, using lender credits, timing your closing date to lower prepaid interest, and exploring TDHCA assistance programs.
Can I roll closing costs into my mortgage?
- Some costs can be offset by lender credits or through program-specific options, but financing them increases your rate or loan balance; discuss tradeoffs with your lender.
