Are you trying to budget for closing costs in Dallas County and not sure where to start? You’re not alone. Buyers and sellers often focus on price and forget the fees that appear on the final statement. A little clarity now can save you stress later. In this guide, you’ll learn who typically pays what in Texas, what’s negotiable, how taxes and recording work in Dallas County, and the exact steps to confirm your numbers before you sign. Let’s dive in.
Closing costs in Dallas County, at a glance
Closing costs cover the services needed to transfer ownership and finalize your loan. In Texas, customs differ from some other states. The seller often pays for the owner’s title insurance policy, while the buyer covers most lender-related fees and the lender’s title policy. That custom is negotiable and can change with your contract.
Texas does not charge a state real estate transfer tax. In Dallas County, you’ll still see recording and document fees from the County Clerk, and those amounts can change. Property taxes are administered through the Dallas Central Appraisal District and local tax offices, and they are usually prorated at closing so each party pays their share for the year.
Buyer closing costs: what to expect
Typical buyer closing costs can range around 2 to 5 percent of the purchase price, depending on your loan, down payment, and timing. Many items are set by your lender or title company, but others are shoppable.
Upfront and loan application items
- Earnest money deposit. Credited to you at closing per contract.
- Loan application, origination fee, and points. Charged by your lender and sometimes negotiable or offset by lender credits.
- Credit report fee. Paid so your lender can underwrite your file.
- Appraisal fee. Paid to the appraiser for the lender-required valuation.
Title and settlement at closing
- Lender’s title insurance (mortgagee policy). Typically paid by you. Premiums follow the Texas Department of Insurance rate schedule.
- Title or escrow closing fee. The title company charges to coordinate your closing. Local practice varies on how buyer and seller split certain escrow fees.
- Recording fees for the deed of trust and other loan documents. Assessed by the Dallas County Clerk.
- Survey fee, if required. You can shop this. Sometimes a seller provides an existing survey with a notarized affidavit. If not acceptable to the title company or lender, a new survey may be needed.
Prepaids and escrow reserves
- Prepaid interest. Covers interest from your closing date to your first mortgage payment.
- Property tax and insurance escrow. Your lender usually collects reserves to set up your escrow account.
- Homeowner’s insurance premium. Often the first year is paid at or before closing. Flood insurance may be required in certain areas by your lender.
Inspections and reports
- General home inspection. You choose and pay the inspector.
- Termite or pest inspection. Often requested by the buyer; some loan programs require it.
- Specialty inspections. Radon, septic, or well testing if applicable.
- HOA document or estoppel fees. If you request association documents, there can be pass-through charges.
Small but common extras
- Title endorsements, notary, courier, wire, and flood certification fees. These are usually modest but add up.
Buyer strategies to save
- Compare lenders. Ask about origination fees, discount points, and credits.
- Review the Loan Estimate. Your lender must provide this within three business days of a complete application. Use it to compare offers.
- Shop services you can choose. You can select your inspection company and often your surveyor.
- Ask about escrow reserves. Your lender can explain how they calculate tax and insurance cushions.
- Check the Closing Disclosure. You must receive it at least three business days before closing. Compare it to your Loan Estimate and ask questions about any changes.
Seller closing costs: what to expect
Seller costs are different from buyer costs. The largest item is often brokerage commission. Many other items relate to title, prorations, and paying off your mortgage.
Largest seller costs
- Real estate commissions. Historically, the combined commission has been around 5 to 6 percent of the sales price. Commission terms are negotiable between you and your listing broker.
Title and settlement items
- Owner’s title insurance policy. In Texas, it is customary for the seller to pay this one-time premium that protects the buyer’s ownership. This is negotiable in your contract.
- Seller closing or settlement fee. Title companies often charge a seller-side fee for their services.
- Recording fees to clear liens. You pay the cost to record lien releases or any payoff-related documents.
Payoffs and prorations
- Existing mortgage payoff. The remaining principal plus any per diem interest and payoff fees.
- Property tax proration. You owe property taxes accrued up to the day of closing, based on the contract.
- HOA or utility prorations. You may be credited or debited to true up dues and services.
Repairs, concessions, and credits
- Repair costs. Work you agree to complete before closing.
- Seller concessions. You can offer a credit to the buyer to cover certain closing costs, subject to loan program limits. These terms are negotiated in the contract.
Other potential charges
- HOA transfer or estoppel fees. Associations often charge for account verification and document delivery.
- Courier or wire fees. Related to delivering payoff funds and documents.
Where sellers have leverage
- Commission structure. Discuss options with your listing broker.
- Owner’s title policy. While customary for the seller to pay in Texas, it is negotiable and can be adjusted in offers and counteroffers.
- Repairs and concessions. These are fully negotiable after inspections.
Taxes and prorations in Dallas County
Property taxes in Dallas County involve several taxing entities, which can include the county, city, school district, and sometimes special districts or Municipal Utility Districts. At closing, taxes are typically prorated so that each party pays the portion owed for their time of ownership. Your title company will show this math on the settlement statement.
If the property is in a special district like a MUD, you may see separate bills or rate factors. Always confirm the property’s taxing entities and estimated taxes through the Dallas Central Appraisal District and the appropriate tax offices. If you are buying, expect your lender to collect initial escrow reserves for taxes and insurance.
Dallas County fees and timing
The Dallas County Clerk sets recording and document fees for deeds, deeds of trust, and lien releases. Fees and processing times can change. Your title company will coordinate the recording of documents and will factor current county charges into your closing figures.
Title companies in Dallas County handle the title search, commitment, and policy issuance. Ask your closer for a preliminary buyer estimate or seller net sheet as early as possible. Reviewing these ahead of time helps you spot errors and plan your cash to close.
Step-by-step: confirm your exact numbers
Get preapproved and request a Loan Estimate. Within three business days of a complete loan application, your lender must send a Loan Estimate showing projected costs.
Compare lenders. Ask about rate, points, lender credits, and third-party fees. Confirm which services you can shop.
Ask your title company for itemized estimates. Request a buyer estimate or seller net sheet that includes title insurance, endorsements, escrow fees, and county recording charges.
Verify taxes and prorations. Confirm the property’s taxing entities and expected annual tax amount. Ask how taxes will be prorated on your closing date.
Clarify survey and HOA requirements. Find out whether an existing survey will be accepted and what HOA transfer or estoppel fees apply.
Review the Closing Disclosure. You must receive it at least three business days before closing. Compare it to your Loan Estimate and your title company estimate. Ask for corrections right away if something looks off.
Confirm wire instructions by phone with known contacts. Protect yourself from wire fraud by verifying instructions directly with your title company.
Common Dallas County gotchas to avoid
- Assuming the seller must pay all title costs. In Texas, it is customary for the seller to pay the owner’s title policy, but every item is negotiable in the contract.
- Overlooking HOA timelines. Estoppel certificates and required documents can affect your closing date.
- Survey surprises. If a new survey is required, allow time for scheduling. Fees vary by provider.
- Underestimating escrow reserves. Your first-year budget should include tax and insurance reserves collected at closing.
- Not comparing the Loan Estimate to the Closing Disclosure. Differences beyond certain tolerances must be explained. Ask questions early.
Working with a local advisor
Closing in Dallas County is straightforward when you know the playbook. Your costs will depend on your contract, loan type, timing, and the providers you choose. The best way to avoid surprises is to get written estimates from both your lender and your title company, review them side by side, and ask for updates as soon as your contract terms change.
If you want an advocate to walk you through each number, coordinate with lenders and title, and keep your closing on schedule, connect with Clinton Asalu. You will get education-first guidance, clear estimates, and step-by-step support from offer to keys.
FAQs
What are typical buyer closing costs in Dallas County?
- Buyers often pay roughly 2 to 5 percent of the purchase price, depending on the loan and timing. In Texas, sellers commonly pay the owner’s title policy, but that and other items can be negotiated in the contract.
Do Dallas County sellers pay a transfer tax in Texas?
- Texas does not have a state real estate transfer tax. In Dallas County, you will see county recording and document fees, which your title company includes in your closing figures.
When do I receive the Loan Estimate and Closing Disclosure?
- Your lender must send the Loan Estimate within three business days of your loan application and the Closing Disclosure at least three business days before closing so you can review final costs.
Who typically pays for the survey in Dallas County?
- It is negotiable. If a seller provides an existing survey that the title company and lender accept, there may be no new survey cost. If a new survey is needed, the contract will specify who pays.
How are property taxes handled at closing?
- Taxes are usually prorated so each party pays for their time of ownership. Buyers often fund an escrow account for taxes and insurance. Confirm the property’s taxing entities and expected amounts with the appraisal district and tax offices.
Can a seller pay a buyer’s closing costs in Dallas County?
- Yes. Seller concessions are common and negotiated in the contract, often up to limits set by the buyer’s loan program. Credits can help buyers cover lender fees and other allowed costs.
