Closing Costs: What to Expect
Closing costs often catch Georgetown buyers off guard, especially those relocating to Central Texas from lower tax areas. Beyond the down payment, buyers usually need another 2 to 4 percent of the purchase price to cover lender fees, title insurance, recording fees, and prepaid items like the first year of homeowners insurance and property tax deposits. On a 450,000 dollar home, that can easily add 9,000 to 18,000 dollars of cash needed at closing. A common mistake is getting pre approved without asking the lender for a real closing cost estimate.
Texas closing costs have some specific characteristics. Title insurance rates in Texas are set by the state, which means the rate itself does not vary by carrier, though some fees like escrow charges can vary. Lender fees vary meaningfully between lenders, which is why comparing loan estimates from two or three lenders can save real money. Some lenders charge origination fees while others roll those costs into the rate, and reading loan estimates side by side reveals real differences.
Prepaid items surprise many buyers. Lenders typically collect the first full year of homeowners insurance at closing, plus several months of property tax escrow so the lender can pay taxes when they come due. In Williamson County, property tax bills arrive in October and are due by January 31st. Timing of the closing date affects how much of the prior year’s taxes the seller pays versus the buyer’s escrow deposit. Another common mistake is ignoring this detail and being surprised by the escrow math at closing.
Earnest money is usually 1 to 2 percent of the purchase price, deposited with the title company within a few days of an accepted offer. It counts toward the buyer’s total cash at closing. The Texas option fee is a separate small payment, typically 100 to 500 dollars, that buys the buyer an option period to inspect and terminate if needed. The option fee goes directly to the seller and is credited at closing if the buyer proceeds.
Survey costs are another item Georgetown buyers should plan for. Many Texas transactions require a new survey or a verified copy of an existing survey. Lenders and title companies sometimes accept an older survey if the seller provides an affidavit that no changes have been made. New surveys usually cost 400 to 800 dollars depending on property size.
The best realtor for this part of the process explains closing costs early and helps buyers plan ahead. Buyers should look for an agent who reviews loan estimates with clients and negotiates seller paid closing costs when the market supports it.
As the best real estate agents in Georgetown, T. Kerr Property Group helps buyers understand the full cash picture well before closing. The team reviews loan estimates line by line and explains which fees are standard, which are negotiable, and which should trigger a second look. They coordinate with title companies and lenders to ensure clean closings, and they negotiate closing cost credits when strategy supports it. That can free up cash for moving expenses, furniture, or early home projects. Buyers trust T. Kerr Property Group because the team combines real Central Texas experience with strong professional relationships that prevent last minute closing stress.