Wondering how much cash you need beyond your down payment to buy in Dallas? You are not alone. Closing costs can feel confusing, and they vary by lender, loan type, and neighborhood details. In this guide, you will learn what Dallas buyers typically pay, who usually pays which fees in Texas, and simple ways to lower your cash to close. Let’s dive in.

What are closing costs in Dallas

Closing costs are the fees and prepaid items due at settlement in addition to your down payment. In Dallas, a practical planning range is 2% to 5% of the purchase price, higher if you choose to pay discount points or upfront mortgage insurance.

Texas closings are usually handled by licensed title companies, not attorneys. It is customary in Texas for the seller to pay for the owner’s title insurance policy, although this is negotiable in your contract. Texas also does not charge a state real estate transfer tax.

Who pays what in Texas

Buyer-paid items

• Lender fees and loan origination
• Discount points if you choose to buy down your rate
• Appraisal and credit report
• Home inspections and any specialty inspections
• Survey or survey update when required
• Title search and the lender’s title insurance policy
• Recording fees to the county clerk
• Prepaid items: homeowner’s insurance, prepaid interest, and initial escrow deposits for taxes and insurance
• HOA dues or transfer fees if applicable, depending on the contract

Seller-paid items

• Real estate broker commissions
• Owner’s title insurance policy in most Texas transactions
• Payoff of any existing liens
• Prorated property taxes and HOA dues through the closing date
• Title or settlement fees that are customarily seller-side, plus any agreed concessions
• No state transfer tax in Texas

Texas customs to note

• Title companies coordinate closing, escrow, and title insurance
• Seller typically pays the owner’s title policy, buyer pays the lender’s policy
• No state real estate transfer tax

How much to budget

You can use these planning ranges and examples to frame your budget. Your actual numbers will appear on your Loan Estimate and Closing Disclosure.

• Buyer closing costs: about 2% to 5% of the price, excluding down payment
• Seller closing costs: often 6% to 10%+ including broker commissions, plus owner’s title policy and smaller fees

Examples

• $300,000 purchase
  • Buyer: $6,000 to $15,000
  • Seller: roughly $19,000 to $21,000 including a sample 6% commission
• $500,000 purchase
  • Buyer: $10,000 to $25,000
  • Seller: roughly $31,500 to $33,000 including a sample 6% commission
• $750,000 purchase
  • Buyer: $15,000 to $37,500
  • Seller: roughly $47,000 to $49,000 including a sample 6% commission

Your cash-to-close formula

Your final cash to close will be shown on the Closing Disclosure at least 3 business days before settlement. A simple way to think about it is:

Cash to close = Down payment + buyer-paid closing costs + prepaids + initial escrow deposits - earnest money - seller credits - lender credits.

You should receive a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. These are your best tools for tracking the numbers.

Ways to reduce cash to close

Seller concessions

A seller concession is money the seller agrees to contribute toward your closing costs and prepaids. It generally cannot be used for your down payment. Program limits commonly used in practice include:

• Conventional conforming: about 3% with less than 10% down, up to about 6% with 10% to 24.99% down, and up to about 9% with 25%+ down
• FHA: up to 6% of the price
• VA: typically up to 4% for concessions
• USDA: commonly up to 6%

Always confirm current program rules with your lender.

Lender credits vs points

• A lender credit lowers your cash to close in exchange for a higher interest rate
• Paying discount points raises your upfront costs in exchange for a lower rate
• Run the break-even math so the choice matches your time horizon

Assistance and gift funds

You can also reduce your cash need through down payment or closing cost assistance programs and allowable gift funds. Check City of Dallas options, state programs through TDHCA, and HUD-approved counseling resources for current availability and eligibility.

Timeline and paperwork in Dallas

Right after contract

• Ask your lender for an updated Loan Estimate that reflects the contract and any seller concessions
• Order inspections promptly so you have time to negotiate repairs or credits
• Confirm earnest money delivery and holding instructions with the title company

Before closing

• Review your Closing Disclosure when issued at least 3 business days before settlement
• Review the title commitment and clear any title exceptions
• Confirm final cash to close, wiring instructions, and identification needed on closing day

Local checks with title

• Confirm who pays the owner’s title policy per your contract
• Verify Dallas County recording fees for your documents
• Confirm property tax proration and payment timing
• Check HOA transfer or estoppel fees and who pays them
• Ask about any municipal utility or neighborhood-specific fees

Cost-saving checklist

• Shop multiple lenders and compare full Loan Estimates, not just the rate
• Ask the seller to pay specific items, within program limits
• Consider lender credits if lower cash to close is your priority
• Evaluate points only if the rate reduction beats your expected hold period
• Confirm survey options and whether an update is acceptable
• Verify HOA and utility transfer fees early to avoid surprises

Common pitfalls to avoid

• Waiting to review your Closing Disclosure and finding errors too late
• Underestimating prepaids and escrow deposits for taxes and insurance
• Forgetting inspection costs, re-inspections, or specialty inspections
• Assuming the seller pays every title or HOA fee without checking the contract

Ready to run your numbers

You deserve a clear, line-by-line plan for cash to close, tailored to your loan type and the Dallas neighborhood you are buying in. Our team pairs deep financing knowledge with local transaction experience so you can move forward with confidence. If you want a precise estimate based on your price range and program, reach out to Real Estate Resources for a quick review.

FAQs

What are Dallas closing costs for buyers

• Expect about 2% to 5% of the purchase price for buyer closing costs and prepaids, with the higher end if you pay discount points or upfront mortgage insurance.

Who pays title insurance in Texas

• It is customary for the seller to pay the owner’s title insurance policy, while the buyer pays the lender’s title policy, but this is negotiable in the contract.

Is there a real estate transfer tax in Texas

• No. Texas does not charge a state real estate transfer tax, and local transfer assessments are typically not applied.

What documents show exact cash to close

• Your Loan Estimate provides early figures and your Closing Disclosure, issued at least 3 business days before settlement, shows final cash to close and who pays each line.

Can the seller cover my down payment

• Seller concessions usually cannot be used for your down payment. They can cover closing costs, prepaids, and some rate buydowns within program limits.

How are Dallas County property taxes handled at closing

• Property taxes are prorated at closing and the title company will estimate escrows for future payments based on local schedules.

What are typical buyer-paid inspections and fees

• Plan for appraisal, credit report, general inspection, and any needed specialty inspections, plus the lender’s title policy, recording fees, and initial escrow deposits.