Sujin Park Henson | September 2026
Short answerTexas buyers typically pay about 2–5% of the purchase price in closing costs. On Killeen’s $235,000 median sale price, that’s roughly $4,700–$11,750. VA buyers can finance only the funding fee, can’t be charged buyer-broker fees, and can ask the seller to cover up to 4%.
Closing costs are the line item that surprises buyers most, and it’s the one I get asked about the second a client sees their first Loan Estimate. The down payment is a number you plan for. Closing costs show up later, in a stack of fees with names nobody explained. So let me walk through what’s actually in there, what changes if you’re using a VA loan, and where you have room to negotiate.
What Are Closing Costs in Texas?
Closing costs are the fees you pay to finish the purchase: your lender’s charges, third-party services like the appraisal and title work, and prepaid items like homeowners insurance. One Texas lender puts the typical buyer range at 2–5% of the purchase price.
Here’s what that looks like on a $235,000 home, the median sale price in my August 2026 Killeen market report:
- 2%: about $4,700
- 5%: about $11,750
Your number depends on your loan type, your lender, and what you negotiate. Treat the range as a planning estimate, not a quote.
What Goes Into a Texas Buyer’s Closing Costs?
Most of it falls into three buckets:
- Lender fees. Origination (from 0% to 2% of the loan), underwriting, and a credit report ($25–$75).
- Third-party services. An appraisal ($450–$900), a title search ($150–$300), and title insurance.
- Prepaids and escrow. Your first year of homeowners insurance ($2,200–$4,500 a year), prepaid interest, and a starter balance for property taxes.
(Ranges for the items above are from a Texas lender’s published guide; see Sources.)
Two Texas-specific notes. First, Texas has no state real estate transfer tax, which keeps this total lower than in many states. Second, title insurance premiums are set by the Texas Department of Insurance, so they’re the same at every title company. For a policy between $100,001 and $1,000,000, the formula is: subtract $100,000, multiply by 0.00494, add $780. On a $235,000 purchase, that works out to about $1,447 for the owner’s policy. Who pays for it is negotiable, so I’ll usually raise it early in the offer.
How Do VA Loan Closing Costs Work?
If you’re buying near Fort Hood with a VA loan, a few rules work in your favor:
- You can finance only the funding fee. VA states that on a purchase loan, “you must pay all other fees and charges when your loan closes.” The funding fee is the one exception. I break down the current rates in my VA loan FAQ, and you may be exempt if you receive VA disability compensation, are a Purple Heart recipient, or are a surviving spouse receiving DIC.
- No buyer-broker fee for you. VA says commissions and buyer-broker fees may not be charged to the veteran buyer.
- Sellers can help, up to a cap. VA doesn’t limit credits toward your closing costs, but it does limit seller concessions to 4% of your home’s reasonable value. On the $235,000 example, that’s $9,400. Discount points aren’t counted toward that cap.
That third rule is why the right offer strategy can leave you bringing very little cash to the table.
Who Pays What: Buyer vs. Seller
Not everything is fixed. VA’s own list of costs that the buyer and seller can negotiate includes commission, origination fees, discount points, credit reports, appraisal fees, hazard insurance, taxes, title insurance, and recording fees. In today’s Killeen market, with 64 days on market and 5.1 months of supply, buyers have real room to ask. Sellers are motivated to close, and a credit toward closing costs is often an easier ask than a price cut.
Ways to Lower Your Closing Costs
- Compare Loan Estimates from at least two lenders. Fees vary from lender to lender, and the Loan Estimate is where you can see them side by side.
- Ask for a seller credit in the offer, not after the inspection.
- Budget the escrow items separately. Property tax and insurance reserves aren’t fees, but they’re cash due at closing. If you qualify for a veteran exemption, my Texas veteran property tax post explains how it changes your monthly numbers.
Frequently Asked Questions
How much are closing costs on a $250,000 home in Texas? At the typical 2–5% range, about $5,000–$12,500, before any seller credit.
Can I roll closing costs into my mortgage in Texas? It depends on the loan. On a VA purchase loan, you can finance only the funding fee.
Does Texas have a transfer tax? No. Texas has no state real estate transfer tax.
Who pays for title insurance in Texas? It’s negotiable between buyer and seller. The premium itself is set by the state.
Can the seller pay my closing costs on a VA loan? Yes, up to 4% in seller concessions, with discount points excluded from that cap.
Ready to Run Your Own Numbers?
Use my mortgage calculator for a monthly payment, check what you can afford with the BAH calculator, and read the VA Loan Guide for the full process.
I’m not a lender or a tax professional, and fees vary by loan and lender. This is general information, not financial advice, so confirm your exact costs with your lender’s Loan Estimate.
Want help building a realistic closing-cost budget before you start touring? Reach out here or call/text me directly.
📞 Call or text me: 737-203-0360
