Buying a home in Texarkana comes with more than a down payment. Closing costs can surprise you if you are not prepared. You want a clear picture of what you will owe, what is negotiable, and how to keep cash-to-close in check. This guide breaks down each line item you will likely see in Bowie County, explains key timelines, and gives you simple steps to review and reduce your costs. Let’s dive in.
What closing costs are
Closing costs are the one-time fees due to finalize your home purchase and mortgage. They are separate from your down payment and different from your monthly housing costs. They pay for your loan setup, title work, government recording, third-party inspections, and certain prepaids like insurance.
A common rule of thumb is that buyer closing costs total about 2 to 5 percent of the purchase price. Your actual number depends on your loan type, price, local practices, and any credits you negotiate.
Your main cost categories
You will see charges grouped into a few buckets. Understanding each one helps you budget and ask the right questions.
Lender and loan costs
- Origination and underwriting fees. Lender charges to process your loan. These can be a flat fee or a percentage of the loan amount.
- Discount points. Optional prepaid interest to lower your rate. Each point equals 1 percent of the loan amount.
- Credit report and application fees. Credit reports often run about $25 to $75.
- Appraisal. Typical range is about $300 to $700 depending on the property.
- Mortgage insurance. Conventional loans with less than 20 percent down may require PMI. FHA loans include upfront and monthly mortgage insurance.
- Flood certification and tax service. Small third-party checks your lender orders.
- Prepaid interest. Covers interest from your closing date to your first payment. The later in the month you close, the smaller this line often is.
- Initial escrow deposits. Many lenders collect a cushion for property taxes and homeowners insurance. This can range from 2 to 12 months depending on timing.
Title and settlement costs
- Title search and exam. Reviews public records to confirm a clear title.
- Title insurance. In Texas, title insurance premium rates are regulated. The owner’s policy protects you. The loan policy protects your lender. In many Texas markets, sellers commonly pay for the owner’s policy, but it is negotiable and should be confirmed in your contract. See the Texas Department of Insurance’s title insurance overview for how premiums work.
- Settlement or closing fee. Charged by the title or escrow company to prepare documents and handle funds.
- Notary, wire, and courier fees. Modest charges to finalize and deliver documents and funds.
Texas law often allows buyers to choose the title company. Confirm who selects it in your purchase contract and compare quotes for fees and service.
Government and county fees
- Recording fees. Paid to the Bowie County Clerk to record your deed and mortgage. Buyers typically pay to record the mortgage. Deed recording can be negotiated.
- Transfer tax. Texas has no statewide real estate transfer tax.
- Local assessments. Some properties have special districts or assessments that affect prorations at closing. Ask your title company to confirm any Municipal Utility District (MUD), Public Improvement District (PID), or other assessments.
Inspections and third-party services
- Home inspection. Often runs about $300 to $600 depending on size and features.
- Specialty inspections. Pest, septic, well, survey, HVAC, or radon where applicable. Your lender may require a current survey.
- HOA fees. If the property sits in an HOA, expect an estoppel letter and transfer fee.
Prepaids and escrow deposits
- Homeowners insurance. Many lenders require you to prepay the first year at closing.
- Property tax reserves. Lenders often collect several months of taxes as a cushion.
- Upfront mortgage insurance. FHA loans include an upfront premium that may be financed.
Property taxes and prorations in Bowie County
Texas relies heavily on property taxes, which are prorated between buyer and seller at closing based on the closing date. Your title company will order a tax certificate to confirm what is due and how the proration works. After closing, your lender’s escrow account typically pays the tax bill when it comes due.
You can review assessed values and taxing entities through the Bowie Central Appraisal District. Ask your title agent to walk through the latest assessments, exemptions, and how your escrow deposits are calculated so you can plan your monthly budget with confidence.
How and when you get cost estimates
You receive two key forms that outline your closing costs and cash to close.
Loan Estimate timing
Your lender must send a Loan Estimate within three business days of a completed application. It shows your rate, monthly payment, and closing cost estimates. Learn what is included on the Loan Estimate and when you receive it.
Closing Disclosure timing
You must receive your Closing Disclosure at least three business days before closing. It lists your final numbers. See what to expect on the Closing Disclosure and the required timeline.
What to compare between the LE and CD
- Total loan costs and other costs. Look for unexpected increases in origination fees or points.
- Title, recording, and third-party fees. These can shift, but your lender and title agent should explain any changes.
- Prepaids and escrow deposits. These vary with your closing date and tax schedule.
- Cash to close. Confirm your seller credits and lender credits are applied correctly.
- Loan terms. Verify your interest rate, payment, and whether your rate lock changed.
Ways to manage and reduce cash to close
- Negotiate seller concessions. Ask your agent about negotiating closing cost credits or having the seller pay the owner’s title policy. Customs vary, but many items are negotiable.
- Ask about lender credits. Some lenders can offset costs in exchange for a slightly higher rate.
- Shop for services. You can often shop your lender, and in many cases, choose your title company. Compare fee sheets and service levels.
- Time your closing date. Closing later in the month can reduce prepaid interest.
- Use assistance programs. The Texas Department of Housing and Community Affairs programs may offer down payment and closing cost help or mortgage credit certificates if you qualify. These require early coordination with approved lenders.
Step-by-step review checklist
- Compare your Loan Estimate to your Closing Disclosure line by line.
- Call your lender about any fees that increased or look unfamiliar.
- Confirm title charges, who pays the owner’s policy, and any endorsements.
- Ask your title company for the exact cash-to-close amount and wiring instructions. Verify wire details by phone with a known number to prevent fraud.
- Review tax prorations, HOA balances, and any special assessments.
- Confirm your first payment date, escrow setup, and the schedule for taxes and insurance.
- Bring a valid ID to closing and follow the title company’s funding instructions.
Local questions to ask in Texarkana
- Who pays for the owner’s title policy on this contract and is that reflected on my Closing Disclosure?
- Can I choose the title company and, if so, which options offer the best mix of fees and service?
- What are the current Bowie County recording fees for my documents?
- How many months of taxes and insurance will my lender collect at closing and why?
- Are there any MUD, PID, or other local assessments on this property?
Buying in Bowie County should feel manageable when you know what to expect. If you want a local, step-by-step walkthrough of your Loan Estimate or Closing Disclosure, connect with a trusted guide who knows how fees work here and how to negotiate credits that help you. Reach out to Colton Daffern for a clear cost review and a calm closing.
FAQs
How much are buyer closing costs in Texarkana?
- A common estimate is 2 to 5 percent of the purchase price, but your total depends on loan type, price, timing, and negotiated credits.
Which closing costs can a seller pay in Texas?
- Many items are negotiable. In many markets sellers commonly pay for the owner’s title policy, and they can offer credits toward other buyer costs if allowed by the loan program.
What is the difference between closing costs, prepaids, and escrows?
- Closing costs are one-time fees to complete your purchase. Prepaids are items like the first year of insurance or prepaid interest. Escrows are deposits your lender holds to pay future taxes and insurance.
When do I get my Loan Estimate and Closing Disclosure?
- Lenders must send a Loan Estimate within three business days of your completed application and deliver a Closing Disclosure at least three business days before closing.
Can I roll closing costs into my mortgage?
- Sometimes. You may finance certain costs or use lender credits in exchange for a higher rate, subject to program rules and appraisal limits.
Are there special taxes or fees at closing in Bowie County?
- Texas has no statewide transfer tax, but you should budget for county recording fees and property tax prorations. Ask your title company to confirm any local assessments.
