Short answer: Buyers in Texas typically pay about 2% to 5% of the purchase price in closing costs. On a $330,000 Houston home, that's roughly $6,600 to $16,500. The biggest pieces are lender fees and prepaid property taxes and homeowners insurance. In Texas, the seller usually pays for the owner's title insurance policy, and in today's market many sellers also help with the buyer's closing costs.

What buyers pay at closing in Texas

Cost	Typical amount
Loan origination fee	0.5%–1% of the loan (sometimes $0)
Processing and underwriting fees	About $600–$1,300
Appraisal	About $500–$1,000
Survey	About $400–$700 (may be waived if the seller has a usable survey)
Lender's title policy	Usually small when issued with the owner's policy
Escrow / closing fee	About $300–$600
First year of homeowners insurance	About $5,700–$6,600 in the Houston area
Property tax escrow	Usually 2–3 months of taxes upfront
Prepaid interest	Interest from closing day to the end of the month

FHA loans also include an upfront mortgage insurance premium of 1.75% of the loan amount. Most buyers add it to the loan instead of paying it in cash.

Costs you pay before closing

• Earnest money: Often around 1% of the price. This is credited toward your costs at closing.
• Option fee: Usually a few hundred dollars for the Texas option period, which gives you time to do inspections and back out if needed. It's often credited at closing if you buy the home.
• Home inspection: Typically a few hundred dollars, plus any add-ons like a sewer scope or foundation check.

Who pays what in Texas?

• Owner's title policy: By custom in most of Texas, the seller pays. It's negotiable, but it's standard in the Houston area.
• Title insurance rates: The Texas Department of Insurance sets title insurance premiums statewide, so they're the same at every title company. Escrow fees and other charges can vary.
• Lender fees, appraisal, prepaid taxes and insurance: Usually the buyer, unless the seller agrees to help.

Example: closing costs on a $330,000 home

Here's a rough example for an FHA buyer purchasing a $330,000 home in Houston:

• Lender fees (origination, processing, underwriting): about $3,000–$4,500
• Appraisal and survey: about $900–$1,700
• Title and escrow (buyer's share): about $500–$1,000
• First-year homeowners insurance: about $5,700
• Property tax escrow and prepaid interest: about $1,500–$2,500
• Estimated total: about $11,600–$15,400

Your actual numbers will show up on your Loan Estimate from your lender and your Closing Disclosure before closing.

How to lower your closing costs

1. Ask the seller to pay. In Houston's current market, homes are taking about 54 days to sell, and many sellers will contribute toward buyer closing costs. FHA loans allow seller contributions of up to 6% of the price.
2. Look at builder incentives. Builders in areas like Pearland, Manvel and Sugar Land often cover closing costs if you use their preferred lender.
3. Compare lenders. Lender fees vary the most. Compare Loan Estimates from 2–3 lenders.
4. Use down payment assistance. Many Texas programs cover closing costs, not just down payment.
5. Close later in the month. This lowers the prepaid interest you owe at closing.
6. Ask about an existing survey. If the seller's survey is still accurate, you may be able to skip a new one.

What about seller closing costs?

Sellers in Texas typically pay for the owner's title policy, their share of escrow fees, prorated property taxes, any agreed repairs or concessions and agent commissions. Thinking of selling? Get an instant estimate of your home's value.

Ready to buy?

Now that you know what to expect, search homes for sale in Houston and surrounding cities. For a full budget breakdown, read how much money you need to buy a house in Houston.

Costs are estimates and vary by lender, loan type, property and closing date. Review your Loan Estimate and Closing Disclosure for exact figures.