TEST PAGE - draft of the Buyer Closing Costs rewrite (day 14 drip email). The live page is /buyer-closing-costs/.

Buyer Closing Costs

Besides your down payment, there are two kinds of Closing Costs: Prepaid Costs and Fixed Costs. Here's what each one is for, what it typically costs in Amarillo, and who usually pays it.

Earnest Money and the Option Fee aren't extra costs. Earnest Money is a deposit, typically about 1% of the price, held by the title company. Both are credited toward what you owe at closing.

Prepaid Costs

Paid up front at closing

These aren't fees. They're costs of owning the home that get paid in advance, usually to start your escrow account.

Homeowner's insurance

12 to 15 months

Your first year of coverage, plus a cushion for your escrow account.

Property taxes

3 to 4 months

A cushion so your escrow account can pay the tax bill when it comes due.

Mortgage interest

Depends on closing date

Interest from closing day to the end of that month. Closing later in the month means less to pay upfront.

The seller credits you for their share of the year's taxes. Texas property taxes are paid at the end of the year, so at closing the seller usually credits you for the months they owned the home. That credit lowers your cash to close.

Fixed Costs

At or before closing

Fees for the services that get your purchase done. Typical ranges in Amarillo:

Cost
Typical
Usually paid by
Lender origination feeYour lender's charge for making the loan
$1,000 to $3,000
Buyer
Lender's Title Insurance policyProtects your lender's interest in the home
About $250
Buyer
Owner's Title Insurance policyProtects you from ownership claims or liens from the home's past. Texas sets the rate by price.
$1,274 vs $2,509On a $200,000 vs $450,000 home
Usually seller
AppraisalThe lender's estimate of the home's value. How it works
$550 to $650Usually paid upfront
Buyer
Property SurveyBoundary lines and easements; an existing survey can sometimes be reused
$550 to $650
Negotiable
General home inspectionYour inspector's report on the home's condition. What's covered
$450 to $550Plus any add-ons. Paid upfront
Buyer
Plumbing inspectionGas and water leak tests plus a sewer scope
$350 to $450Paid upfront
Buyer
Termite inspectionChecks for termites and other wood-destroying insects
$150 to $200Paid upfront
Buyer
Attorney feesPreparing loan and closing documents
$200 to $450
Buyer
Escrow feeThe title company's fee for handling the closing
$400 to $500Per side
Each side pays
HOA transfer and resale certificateOnly in neighborhoods with an HOA
Varies by HOA
Negotiable
Home warrantyOptional coverage for systems and appliances in the first year
Varies by plan
Negotiable
Flood certificateShows whether the home is in a flood zone
$20 to $30
Buyer
Recording feesFiling your deed and loan with the county
$100 to $250
Buyer
Endorsements and otherAdd-on coverage to the Title Insurance policy and small items
$100 to $300
Buyer

This isn't a complete list. Amounts vary by purchase price, property type, area, lender and other factors.

Could the seller pay some of your Closing Costs?

Seller contributions

Sometimes. As part of your offer, you can ask the seller to cover part or all of your Closing Costs. They can agree, decline or counter somewhere in between. Your loan program also limits how much the seller can contribute.

Keep in mind the seller has Closing Costs of their own, so anything they pay toward yours comes out of what they walk away with.

Whether it's worth asking depends on the home and the market. We'll talk it through with you before you make an offer.

Want a rough idea of your cash to close?

Our team can put together an estimate based on the specific home you're looking at.
Ask our team

Keep reading

Home Buying BasicsThe terms you'll hear after your offer is accepted Home InspectionsWhat's checked during your Option Period Home AppraisalsWhat happens if it appraises low