What will you actually owe on closing day in Austin? If you are buying in Travis County, the answer depends on your loan, the contract, and a few Texas‑specific practices that can catch first‑time and relocating buyers off guard. You want a clear number you can trust and a roadmap for when each item is due. In this guide, you will learn what shows up on your Closing Disclosure, who typically pays what in Texas, and how to budget with confidence for East Austin and beyond. Let’s dive in.
What Austin buyers usually pay
Most buyers in Austin should expect total closing costs, not including the down payment, to land around 2% to 5% of the purchase price. The exact figure depends on your loan type, rate choice, property type, and negotiated credits.
Closing costs include third‑party fees, lender charges, prepaid taxes and insurance, and any HOA transfer or estoppel fees. Federal rules require that you receive a detailed Closing Disclosure at least three business days before closing, so you can review every charge in writing. You can read more about how the Closing Disclosure works in the Consumer Financial Protection Bureau’s overview of the document and timing requirements.
- Learn how the Closing Disclosure is structured in the CFPB’s guide to the form and timeline at the CFPB Closing Disclosure page.
Line‑by‑line costs in Austin
Title and escrow
- Owner’s title insurance protects your ownership. In Texas it is common for the seller to pay for the owner’s policy as a local custom, but this is negotiable in the contract.
- Lender’s title insurance protects the lender and is typically a buyer expense when you have a mortgage.
- The title company also charges an escrow or closing fee for handling funds and documents. This may be split or assigned to one side based on the contract.
- Title insurance premiums in Texas are regulated by the Texas Department of Insurance, which uses a filed, tiered rate schedule.
Lender fees and loan costs
- Origination, underwriting, and processing are the lender’s administrative charges. These appear as flat fees or a percentage of the loan.
- Credit report, flood certification, and tax service fees are third‑party items required by the lender.
- The appraisal is ordered by the lender and is usually paid by you.
- Discount points are optional. You can pay points at closing to lower your interest rate.
Your Loan Estimate will show these early, then your Closing Disclosure will confirm them later.
Prepaid taxes, insurance, and escrow reserves
- Property taxes in Travis County are assessed by the Travis Central Appraisal District and billed by the county tax office. Taxes are prorated through the day of closing so each party pays their share for the year.
- If your loan requires an escrow account, you will prepay a portion of property taxes and homeowners insurance into that account at closing.
- You typically pay the first year of homeowners insurance at or before closing.
- Prepaid interest covers the interest from funding through the end of your closing month and is due at closing.
Because Texas property taxes can be significant, prepaids and initial escrow deposits can be one of the largest upfront costs.
- Learn how valuations are set locally at the Travis Central Appraisal District.
HOA and condo related fees
- Regular HOA dues are prorated at closing so you reimburse the seller for the period after you take ownership.
- Many associations charge an estoppel or transfer fee to provide required documents. Amounts vary widely and are often in the low hundreds, but can be higher.
- Some communities charge a one‑time capital contribution on resale. Who pays is set by the contract and HOA rules.
In East Austin, condos and newer townhome developments are more likely to have HOAs and related transfer or estoppel fees than older single‑family lots. Ask for HOA documents as early as possible.
Recording, deed, and municipal items
- The Travis County Clerk charges a recording fee to record the deed and the deed of trust. Expect a modest county fee as part of closing costs.
- Texas does not have a state real estate transfer tax. County recording charges still apply.
- If the home is in a municipal utility district or subject to special assessments, prorations or payoffs may appear on your Closing Disclosure.
Survey, inspections, and repairs
- A current survey may be required by the title company or your lender. An existing survey may be acceptable if the seller provides it and it meets requirements. If a new survey is needed, you often pay for it unless negotiated otherwise.
- Home and pest inspections are usually paid before closing. Any agreed repairs can be handled with a seller credit or completed work, based on the contract.
Older East Austin properties can have unique lot lines or easements, so build in time to review surveys and title exceptions.
Austin and Travis County specifics
Title insurance custom
In many Texas transactions the seller pays for the owner’s title policy and the buyer pays for the lender’s policy. The allocation is negotiable and should be stated clearly in your contract. Title premiums follow rates regulated by the Texas Department of Insurance.
Property taxes and timing
The Travis Central Appraisal District sets values, and county taxes are generally billed in the fall and paid in arrears. At closing, taxes are prorated through the closing date. If you plan to claim a homestead exemption, it can lower future tax liability but does not reduce taxes already assessed before your purchase.
Recording fees
Recording charges are county specific. In Travis County, the clerk’s office collects a standard fee to record the deed and lien documents. This appears in the government recording section of your Closing Disclosure.
HOA patterns in East Austin
East Austin includes a mix of older single‑family homes, historic areas, new infill, and condo or townhome communities. Expect HOA and estoppel fees to be more common in newer developments and condos than in older lots without an HOA.
Common local surprises
Watch for special assessments, pending utility or street improvement charges, or rollback taxes if a property’s prior use or exemptions recently changed. Your title commitment and HOA documents will help surface these early.
How loans and negotiations change your costs
Seller concessions
You can ask the seller to contribute to your closing costs. Limits depend on your loan program and occupancy rules. For example, FHA, VA, and conventional loans each set caps and guidelines for seller credits. Always confirm the specific limits and eligible costs with your lender.
Points and rate buy‑downs
If you want a lower rate, you can pay discount points at closing. This shows as a line item under loan costs on the Closing Disclosure.
Financing some costs
Some lenders allow certain costs to be financed into the loan amount or offset with a lender credit. This increases the loan you carry and the interest paid over time. Review your options on the Loan Estimate and confirm on the final Closing Disclosure.
Credits vs. price
Seller credits that cover your closing costs appear on the Closing Disclosure and reduce the cash you bring to close. They must comply with your lender’s rules and the contract terms.
Budgeting checklist and timeline for East Austin buyers
What to expect and when
Offer stage: Request HOA documents early, clarify who pays for the owner’s title policy, and negotiate any seller credits in the contract.
After application: Your lender provides a Loan Estimate with itemized closing cost estimates within three business days of your application.
Before closing: The title company issues the title commitment, you complete inspections, and HOA estoppel or transfer requests go out.
Final numbers: You receive the Closing Disclosure at least three business days before closing. Follow the title company’s instructions for a cashier’s check or secure wire.
Review the contract and form mechanics at the Texas Real Estate Commission.
Line items to budget for
- Lender fees: origination, underwriting, credit report, appraisal.
- Title and escrow: lender’s title policy, escrow or closing fee, notary and courier where applicable.
- Prepaids and reserves: first year homeowners insurance, prepaid interest through month‑end, initial escrow deposits for taxes and insurance if required.
- Property tax prorations: your share through year‑end based on the closing date and current valuation.
- HOA costs: prorated dues, estoppel or transfer fees, any capital contribution per HOA rules.
- Inspections and survey: home and pest inspections, plus a new survey if needed.
- Recording and miscellaneous: county recording fees, possible wire fees, and moving or utility deposits.
A simple budgeting approach
- Start with your lender’s Loan Estimate and plan a 5% to 10% buffer for last‑minute prorations or items that shift.
- If you are counting on seller concessions, make sure the credit amount and eligible uses are written into the contract and approved by your lender. Do not assume a credit until it appears on your Closing Disclosure.
Reading your Closing Disclosure
The Closing Disclosure groups charges under Loan Costs and Other Costs and includes summaries of your loan terms and projected payments. Seller credits and other adjustments appear in the closing figures and reduce the cash you need to bring.
You must receive the Closing Disclosure at least three business days before closing. If a major change occurs, such as an APR increase beyond tolerance or a change to certain loan terms, a new three‑day review window can be required. For a plain‑English walkthrough of the form, see the CFPB’s Closing Disclosure guide.
Ready to talk through your numbers and strategy one‑on‑one? Reach out to Christine Hsu for concierge guidance tailored to your loan, property, and timeline.
FAQs
How much are buyer closing costs in Austin, Texas?
- Most buyers should plan for about 2% to 5% of the purchase price in closing costs, not including your down payment. Your loan type, rate choice, and negotiated credits will affect the total.
Who pays for title insurance in Texas closings?
- It is common for the seller to pay for the owner’s title policy and the buyer to pay for the lender’s policy, but this is negotiable and should be stated in your contract.
What prepaid costs should I expect in Travis County?
- Expect the first year of homeowners insurance, prepaid interest to month‑end, and initial escrow deposits for property taxes and insurance if your loan requires an escrow account.
Are HOA estoppel or transfer fees common in East Austin?
- They are more common in condos and newer townhome communities. Fees vary by association and can be in the low hundreds or higher, so request HOA documents early.
When will I receive my Closing Disclosure in Austin?
- Federal rules require your lender to deliver the Closing Disclosure at least three business days before closing. Significant changes can trigger a new three‑day review period.
Can I use seller concessions to cover my closing costs?
- Yes, within loan program limits. FHA, VA, and conventional loans each cap seller credits differently, so confirm allowable amounts and uses with your lender before you finalize the contract.
