Buying a home in San Antonio and wondering how much you will need beyond your down payment? You are not alone. Closing costs can surprise first-time and repeat buyers if you do not plan ahead. In this guide, you will learn what closing costs are, how much to budget in Bexar County, who usually pays what in Texas, and smart ways to estimate and reduce your costs. Let’s dive in.
What closing costs are
Closing costs are the fees, prepaid items, and third‑party charges you pay to complete a home purchase beyond your down payment. They include lender fees, title and recording costs, prepaid interest and insurance, escrow deposits, prorated property taxes, and any HOA or community charges.
How much to budget in San Antonio
A practical planning rule is to set aside 2% to 5% of the purchase price for buyer closing costs. The exact number depends on your loan program, lender, and local fees. For context, there is no state real estate transfer tax in Texas, which helps keep costs lower than in many other states.
Quick example on $350,000
- 2% estimate: about $7,000
- 5% estimate: about $17,500
Your final amount will reflect your loan terms, title charges, insurance, taxes, and the month you close.
Who pays what in Texas
Texas customs often guide who pays certain items, but many charges are negotiable in your purchase contract.
- Owner’s title policy: It is customary for the seller to pay for the owner’s title insurance policy in Texas.
- Lender’s title policy: If you have a mortgage, you as the buyer typically pay for the lender’s policy.
- Other fees: Recording, inspections, prepaid items, and lender fees are usually buyer costs. You can negotiate seller concessions to cover some of these.
Your line‑by‑line costs
Below is a plain‑English breakdown of common buyer charges. Your Loan Estimate and later your Closing Disclosure will show the exact numbers.
Lender fees
- Origination, underwriting, and processing: Charged by your lender to create and approve the loan. Amounts vary.
- Discount points: Optional fees that lower your interest rate. One point equals 1% of your loan amount.
- Credit report: A small charge, usually under a few hundred dollars.
- Appraisal: Often required by lenders to confirm value, commonly about $400 to $800.
- Rate lock (if any): Some lenders charge to lock a rate for a set period.
Title and settlement
- Title search and settlement: Paid to the title company for closing services and fund handling.
- Title insurance: Customarily, the seller pays the owner’s policy and the buyer pays the lender’s policy, but this can be negotiated.
- Recording fees: Bexar County charges per instrument recorded, such as the deed and deed of trust. Amounts follow the county fee schedule.
Prepaids and escrow deposits
- Prepaid interest: Covers interest from your closing date to the first mortgage payment.
- Homeowner’s insurance: Lenders often require the first year’s premium at closing.
- Escrow reserves: Your lender may collect a few months of property taxes and insurance to seed your escrow account.
- Property tax proration: The seller pays taxes through the day of closing. You pay from the day you take ownership forward.
Inspections and reports
- Home inspection: Often about $300 to $600 depending on size and features.
- Termite or pest inspection: Frequently $50 to $200.
- Survey: If a new survey is required, expect several hundred dollars.
- Specialized inspections: Septic, well, pool, foundation, or other systems as needed.
Governmental and local items
- Recording fees: Paid to the Bexar County Clerk to record documents.
- Transfer tax: Texas does not impose a state real estate transfer tax. Local jurisdictions generally do not add one.
- Special districts: Some properties carry extra assessments. Review tax statements and community disclosures.
HOA and community fees
- HOA transfer or document fees: If the home is in an HOA, there can be one‑time transfer or document fees plus prorated dues. Amounts vary by community.
Other possible charges
- Courier or wire fees, flood zone determinations, or attorney fees if used.
- Broker commissions are typically paid by the seller, but always confirm your contract terms.
How to estimate your costs
You can get very close to your final number early in the process.
- Request Loan Estimates from at least two lenders. You will get one within three business days of application.
- Ask the title company for an estimate of title premiums, settlement, and recording fees.
- Use the 2% to 5% rule as a quick baseline, then refine it with your Loan Estimate and title quote.
- Review any HOA transfer and dues information as soon as it is available.
Ways to reduce or shift costs
Closing costs can be managed with a few smart moves.
- Negotiate seller concessions in your offer. Texas contracts allow sellers to cover some buyer costs, subject to loan rules.
- Shop lenders and compare rate‑and‑credit options. Lender credits can reduce upfront costs in exchange for a slightly higher rate.
- Explore assistance programs. The City of San Antonio, state agencies, and community organizations may offer down payment or closing cost assistance for eligible buyers.
- Compare title and settlement fees. Ask for itemized quotes and review optional add‑ons carefully.
Timeline and documents to watch
Understanding the paperwork helps you avoid last‑minute surprises.
- Loan Estimate: Within three business days of your loan application, this shows your early cost picture. Compare lender to lender.
- Closing Disclosure: At least three business days before closing, you receive the final fee breakdown. Compare it to your Loan Estimate and ask about any changes.
- Funds for closing: Follow the title company’s instructions for certified funds or a wire. Always verify wiring instructions by phone using known contact numbers to protect against wire fraud.
Local checks for Bexar County
- Bexar County Clerk: Check the current recording fee schedule and document requirements.
- Bexar County Tax Office and BCAD: Review tax rates, assessments, exemptions, and payment calendars. Confirm proration at closing.
- San Antonio Board of REALTORS: Local median prices can help you convert percentage estimates to real dollars for planning.
- City and state housing resources: Look for current down payment or closing cost assistance programs and eligibility rules.
Quick closing day checklist
- Review and sign your Closing Disclosure at least three business days before closing.
- Confirm the final cash‑to‑close with your lender and title company.
- Verify wire instructions by phone using a trusted number.
- Bring a government‑issued ID and any lender‑required documents.
- Arrange utilities and homeowner’s insurance to start on possession.
Ready to make your San Antonio move with clarity and confidence? Let’s build a cost plan that fits your lifestyle and timeline. Reach out to Forey Real Estate for a personalized closing cost review and next steps tailored to your goals.
FAQs
What are typical buyer closing costs in San Antonio?
- Plan for about 2% to 5% of the purchase price, depending on your loan, lender fees, title charges, insurance, taxes, and timing.
Is there a real estate transfer tax in Texas for buyers?
- No. Texas does not impose a state real estate transfer tax, and local jurisdictions generally do not add one.
Who pays for title insurance in Texas purchases?
- It is customary for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy if there is a mortgage. This can be negotiated.
Can I roll closing costs into my mortgage?
- Some costs can be financed depending on your loan program and appraisal value, while prepaids and escrow deposits are usually paid at closing.
Why did my Closing Disclosure change from my Loan Estimate?
- Interest rate locks, third‑party quotes, and allowable tolerance changes can shift certain fees. Review both forms and ask your lender to explain any differences.
How are Bexar County property taxes handled at closing?
- Taxes are prorated so the seller pays through the day of closing and you pay from your ownership date forward. Your lender may also collect initial escrow reserves.
