Surprised by how much cash you need to bring to closing, beyond your down payment? You are not alone. If you are buying in Argyle or anywhere in Denton County, a clear plan for closing costs will help you avoid last‑minute stress and keep your move on track. In this guide, you will learn who typically pays what in Texas, what you should budget, which items are prepaid or prorated, and smart ways to reduce your cash to close. Let’s dive in.
Closing costs, in plain terms
Closing costs are the fees and prepaids due when you finalize a home purchase. They are separate from your down payment. For many DFW buyers, a practical planning range is 2 to 5 percent of the purchase price. Your exact number depends on price point, loan type, new construction vs. resale, and any credits you negotiate.
To put that in context:
- $300,000 purchase: budget about $6,000 to $15,000
- $500,000 purchase: budget about $10,000 to $25,000
- $750,000 purchase: budget about $15,000 to $37,500
Your lender will give you a final Closing Disclosure at least 3 business days before closing so you can review the exact cash to close.
Who pays what in Texas
Texas closings are typically handled by title companies that coordinate documents, collect funds, and disburse payments. Customs vary by deal and market, but here is what you will commonly see.
Typical buyer costs
- Lender charges like origination, underwriting, processing, credit report, and any points you choose to buy down your rate.
- Appraisal fee and flood certification if required.
- Lender’s title insurance policy if you finance the purchase.
- Title company closing or escrow fees and county recording fees for the deed and deed of trust.
- Prepaid items and escrow deposits for property taxes and homeowners insurance.
- Prepaid interest from your closing date to your first payment.
- Inspections such as general home inspection and wood‑destroying insect inspection.
- HOA transfer or estoppel fees if the home is in an HOA, plus any utility or municipal transfer fees.
Typical seller costs
- Real estate broker commissions.
- Owner’s title insurance policy, which is customarily paid by the seller in many Texas transactions.
- Payoff of the seller’s mortgage, plus any liens that must be cleared.
- Any agreed repairs, seller concessions, or credits negotiated in the contract.
- Prorations for property taxes and HOA dues up to the day of closing.
Legal and timing essentials
- Texas does not have a state real estate transfer tax. You should still expect county recording fees and standard title company charges.
- Title insurance rates are regulated by the Texas Department of Insurance. Title companies may charge separate closing or escrow fees that can vary.
- Your lender must deliver the Closing Disclosure at least 3 business days before you sign. Significant changes can trigger a new 3‑day review period.
Prepaids and prorations to expect
Not everything on your settlement statement is a fee. Some items are collected now to cover future bills.
- Property tax prorations. Texas property taxes are billed in the fall for the current year and collected the following year. At closing, taxes are prorated between you and the seller based on the closing date.
- Escrow account deposits. Most lenders collect a few months of tax and insurance reserves to start your escrow account so they can pay those bills later for you.
- Homeowners insurance. Many lenders require the first year’s premium to be paid at or before closing.
- Prepaid interest. You pay interest from your closing date through the end of that month so your first mortgage payment aligns with the lender’s schedule.
Argyle and Denton County notes
Buying in Argyle comes with a few local details worth checking early so your budget is accurate.
Property taxes and MUDs
Some neighborhoods sit inside Municipal Utility Districts or other special districts. These can add assessments that impact your property tax bill. Review the property’s tax history and whether it lies in any special district. Your title commitment and local records will flag these items.
Title and county recording
Recording fees are set at the county level and can change. Ask your title company for Denton County recording estimates and a breakdown of their escrow and closing fees. Title insurance premiums follow state rate schedules, while other title company charges can vary.
New construction in Argyle
In new builds, many builders offer incentives. Examples include covering part of your closing costs, providing a rate buydown, or offering upgrade credits. Incentives depend on the community and market conditions. If you are considering a new home, compare the total package so you can weigh the value of credits versus price.
How to lower your cash to close
A few smart moves can reduce the amount you bring to closing.
Ask for seller credits
You can request that the seller contribute toward your closing costs. How much a seller is willing to pay depends on the market and the strength of your offer. Loan programs also set limits on concessions. For example, FHA commonly allows up to 6 percent toward closing costs and prepaids. Conventional and VA loans have their own rules. Always confirm the current limits with your lender.
Compare lender credits and points
You can accept a slightly higher interest rate in exchange for a lender credit that reduces your upfront costs. Paying discount points does the opposite. The best choice depends on how long you expect to own the home. Get quotes both ways and compare the break‑even timeline.
Shop title and lender fees
Many third‑party fees vary. Request Loan Estimates from at least two or three lenders and ask a local title company for a fee quote. Review line items side by side so you understand where your dollars are going and what is competitive.
Negotiate repairs as credits
If your inspection reveals items that need attention, you can negotiate a price reduction or closing cost credit instead of asking the seller to complete repairs. Credits can lower your cash to close while giving you control over the work after closing.
Budget examples by price point
Here is how the 2 to 5 percent range can play out for common Argyle price points. Your numbers will vary based on loan program, taxes, insurance, and negotiated credits.
- For a $300,000 home: expect lender fees, appraisal, lender’s title policy, title closing fees, recording, inspections, first‑year homeowners insurance, a few months of escrow reserves, prepaid interest, and any HOA transfer fees. Total plan: about $6,000 to $15,000.
- For a $500,000 home: the same categories scale with price, and escrow deposits can be higher depending on tax rate. Total plan: about $10,000 to $25,000.
- For a $750,000 home: higher title premiums, potentially larger escrows, and similar third‑party fees. Total plan: about $15,000 to $37,500.
If you secure seller credits, builder incentives, or lender credits, your true cash to close can land on the lower end of these ranges.
Pre‑closing checklist for Argyle buyers
Use this list to keep your closing on schedule and your budget accurate.
- Get a Loan Estimate early and compare at least 2 to 3 lenders for rate and fee options.
- Ask your agent to request a title fee estimate from a Denton County title company and review the itemized charges.
- Confirm in writing whether the seller will pay for the owner’s title policy and whether your contract includes closing cost credits.
- Check if the home is in an HOA or a MUD and request the needed statements and disclosures.
- Schedule your inspections promptly and gather estimates for any repairs you plan to negotiate.
- Line up homeowners insurance and have proof of coverage before closing.
- Plan your funds. Ask the title company how to deliver certified funds or a wire and verify wiring instructions by phone with a known number.
What to expect on closing day
Closing day is straightforward when you prepare ahead.
- Bring a valid government ID and the funds listed on your Closing Disclosure via certified check or secure wire.
- Review your final Closing Disclosure at least 3 business days in advance so there are no surprises.
- Expect to see prorations for taxes and HOA dues, plus escrow deposits for taxes and insurance.
- Keep an eye on small line items like courier, wiring, and notary fees so your totals match your expectations.
Protect your funds from fraud
Wire fraud is a real risk in real estate transactions. Always verify wiring instructions directly with the title company using a trusted phone number. Do not rely on emailed instructions alone. If anything looks off, call before you send funds.
Ready to move to Argyle?
You do not have to sort through closing costs on your own. Our team guides you through lender quotes, title fees, and local tax details so you feel confident from offer to keys. If you are weighing new construction incentives or want to negotiate seller credits, we will help you compare scenarios and choose the strongest path. Reach out to Edson Miranda for friendly, local guidance and a clear closing plan.
FAQs
What are closing costs for an Argyle homebuyer?
- Plan for 2 to 5 percent of the purchase price, excluding your down payment. The exact number depends on loan type, taxes, insurance, title and lender fees, and any credits.
Who typically pays title insurance in Texas?
- It is common for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy if financing. This is a custom and can be negotiated in your contract.
Are there real estate transfer taxes in Texas?
- No. Texas does not charge a state transfer tax. You should still expect county recording fees and standard title company charges at closing.
How are property taxes handled at a Texas closing?
- Taxes are prorated based on the closing date. Your lender usually collects escrow deposits for future tax and insurance payments as part of your closing costs.
Can a seller cover my closing costs in Argyle?
- Yes, seller credits are negotiable and depend on the market and loan program limits. For example, FHA commonly allows up to 6 percent in concessions. Confirm limits with your lender.
When will I see my final cash to close?
- Your lender must provide the Closing Disclosure at least 3 business days before closing. Review it carefully and ask your lender or title company about any changes.
