Fort Worth Closing Costs, Explained for First-Time Buyers

Buying your first home in Fort Worth should feel exciting, not confusing. Still, the list of fees that show up right before closing can raise a lot of questions. You want to know what you will actually pay, what sellers often cover in Texas, and how to keep your cash to close within budget. This guide breaks it all down in plain language so you can plan with confidence and avoid surprises. Let’s dive in.

Closing costs explained

Closing costs are the fees and prepaid items required to complete your home purchase and your loan. They are separate from your down payment. You will see them grouped as loan costs, third-party/title costs, and prepaids like insurance and taxes.

Your lender must give you a Loan Estimate a few days after you apply and a final Closing Disclosure at least three business days before closing. These two documents show your expected and final numbers in detail.

How much to budget in Fort Worth

A simple rule of thumb is 2 to 5 percent of the purchase price for buyer closing costs, not counting your down payment. For a $300,000 home, that suggests about $6,000 to $15,000 in closing costs and prepaids. The exact number depends on your lender’s fees, your loan type, insurance costs, escrow setup, HOA charges, and your closing date.

If you want a quick estimate right now, pick a number in the middle of the range for planning, then refine with a lender’s Loan Estimate and a local title company’s fee worksheet.

Who pays what in Texas

Texas customs differ from other states. Here is how costs are typically handled in Fort Worth and across Tarrant County. Your contract and title company will confirm the final splits.

Loan-related fees (usually buyer)

• Origination, underwriting, and processing fees
• Appraisal and credit report
• Discount points if you choose to buy down your rate
• Flood certification and other lender-required checks

Title and closing (by agreement, with Texas customs)

• Owner’s title insurance policy: customarily paid by the seller in Texas. Confirm this in your contract.
• Lender’s title insurance policy: buyer typically pays.
• Title exam, endorsements, and escrow/closing fee: commonly split or assigned by agreement.
• Recording fees: buyers often pay to record the deed of trust; other recording splits can vary.

Government and local

• Transfer tax: Texas does not have a state real estate transfer tax.
• Recording fees: set by the county and based on the number of documents filed.

Prepaids and escrows (usually buyer)

• Prepaid mortgage interest from closing to your first payment
• First year of homeowner’s insurance
• Initial escrow deposits for taxes and insurance if your lender requires an escrow account
• Property tax proration: Texas taxes are paid in arrears. The seller typically credits you for their share for the portion of the year they owned the home. Exact amounts depend on the closing date and whether taxes are already paid.

Inspections and surveys (usually buyer)

• General home inspection, termite (WDI) inspection, and any well or septic checks if needed
• Surveys are common in Texas. Who pays can be negotiated and depends on whether a usable survey already exists.

HOA items (varies by contract)

• HOA transfer or resale fees apply when a home is in an association. Payment responsibility is set by the contract and HOA rules. Verify early so you can budget.

Other possible costs

• Upfront mortgage insurance for FHA or private mortgage insurance setup for conventional loans
• Condo or project review fees if you buy a condo
• Optional home warranty

Estimate your cash to close

Use this simple method to build a budget you can refine as you go.

Step-by-step estimate

1. Decide your down payment percentage.
2. Estimate closing costs at 2 to 5 percent of the price. Use 2 percent for a lean scenario and 4 to 5 percent if you expect larger escrows or HOA fees.
3. Include prepaids like one year of insurance and 1 to 2 months of escrow deposits. These are usually part of that 2 to 5 percent range but confirm on your Loan Estimate.
4. Subtract any seller or lender credits you expect to receive.

Real-world examples

• $250,000 home: closing costs about $5,000 to $12,500. With 3 percent down, your total cash to close could land around $12,500 to $20,000.
• $350,000 home: closing costs about $7,000 to $17,500.
• $500,000 home: closing costs about $10,000 to $25,000.

What is paid when

• Inspections: usually paid when you order them, before closing.
• Appraisal: often billed upfront or added to closing costs, depending on the lender.
• Insurance and initial escrow: typically due at or just before closing and listed on your Closing Disclosure.

Negotiate smart: seller credits and limits

As a first-time buyer, you can reduce cash to close by negotiating seller-paid costs or using lender credits. A few key points help you stay within program rules and protect your appraisal.

Seller contributions

You can ask the seller to pay part of your closing costs. If you also raise the purchase price to offset the credit, remember the appraisal must support that price. Work with your agent and lender to structure a clean offer.

Program limits to confirm with your lender

• FHA: seller concessions often allowed up to 6 percent of the price for typical buyer costs.
• USDA: seller concessions commonly allowed up to 6 percent; verify with your USDA lender.
• VA: seller-paid costs and certain concessions are allowed, but VA has specific rules on what counts as a concession. Check with a VA-approved lender.
• Conventional (Fannie/Freddie): limits depend on your down payment. A common guide is 3 percent when you put less than 10 percent down, with higher caps at larger down payment tiers. Confirm exact limits in writing.

Lender credits vs rate

Some lenders offer a credit toward closing costs in exchange for a slightly higher interest rate. Compare the monthly payment increase against the upfront savings to see what works for your timeline.

Fort Worth specifics to check

Buying in Tarrant County comes with local items that can move your numbers up or down. Your title company and lender can verify each line.

• Property taxes: Texas taxes are county-based and paid in arrears. At closing, taxes are prorated based on the date you take ownership and whether taxes are already paid for the year. Ask your lender to use the property’s actual tax jurisdictions for a tighter estimate.
• Recording fees: Tarrant County recording charges depend on how many documents are filed. Your title company’s fee worksheet will show these amounts.
• Title insurance custom: In Texas it is customary for the seller to pay for the owner’s title policy. This reduces what you pay as the buyer, but it must be in the contract.
• HOA and city fees: If the property is in an HOA, plan for transfer or resale fees. Some suburbs have utility transfer or permit items at resale. Confirm early so you can budget.
• Flood and special inspections: Fort Worth has areas with flood risk. Your lender will order a flood certification, and flood insurance may be required before closing if the home is in a high-risk zone. Rural edges of Tarrant and nearby counties may need well or septic inspections.

First-time buyer checklist

Use this list to keep your numbers clear and your timeline smooth.

• Get pre-approved, not just pre-qualified. Ask for a written Loan Estimate based on your target price and loan type.
• Share the property address when you can so the estimate reflects real taxes, insurance, and HOA fees.
• Compare at least three lenders on total closing costs, lender fees, escrow requirements, and options for lender credits.
• Request a fee estimate from a local title company for your price range. Ask for an ALTA-style worksheet so you can compare line items.
• When writing an offer, specify any seller credits and who pays the owner’s title policy and HOA transfer/resale fees.
• Review your Closing Disclosure at least three business days before closing. Compare it to your Loan Estimate and ask about changes.
• Add a 1 to 2 percent cushion in your budget for last-minute prorations or items that pop up.

Bringing it all together

When you add it up, closing costs in Fort Worth are predictable once you know the moving parts. Plan for 2 to 5 percent of the price, confirm that the seller covers the owner’s title policy per Texas custom, and use your Loan Estimate and title worksheet to fine-tune. With a smart offer and the right credits, you can reduce your cash to close and step into homeownership with confidence.

If you want local, step-by-step guidance on your numbers, reach out to Jennifer Frank for a tailored closing cost plan and lender introductions that fit your goals. Connect with Jennifer Frank to get started.

FAQs

What are typical closing costs for a Fort Worth first-time buyer?

• Most buyers should budget about 2 to 5 percent of the purchase price for closing costs, separate from the down payment.

Who usually pays for the owner’s title policy in Texas?

• In Texas it is customary for the seller to pay for the owner’s title insurance policy, but your contract must spell this out.

Does Texas charge a real estate transfer tax at closing?

• No. Texas does not have a state real estate transfer tax, though you will still pay county recording fees.

How are property taxes handled at closing in Tarrant County?

• Taxes are paid in arrears in Texas, so they are prorated at closing based on the date you take ownership and whether taxes are already paid for the year.

Can I ask the seller to pay some of my closing costs?

• Yes. Seller credits are common and allowed within loan program limits, which vary by FHA, VA, USDA, and conventional loans—confirm the exact cap with your lender.

When will I see my final closing numbers?

• Your lender must provide a Closing Disclosure at least three business days before closing; review it and compare it to your Loan Estimate.