Pass TexasThe total the buyer brings to closing, minus credits and earnest money.
Printable cheat sheet
Texas buyer closing-cost and cash-to-close cheat sheet
Built for Texas sales agent exam prep. Use this to keep the down payment out of closing costs, base points on the loan, add the prepaids, and remember Texas has no transfer tax.
Loan costs, title, recording, appraisal, and prepaids. Excludes the down payment.
Origination and discount points use the loan amount, not the sale price.
Escrow reserves for tax and insurance plus the first-year insurance premium.
Records the deed and the deed of trust. A flat county fee, not a tax.
Texas has no statewide real estate transfer or documentary stamp tax.
The exam setup rule
- Compute the loan: sale price minus the down payment.
- Loan costs: origination and points as a percent of the loan, plus title, recording, and appraisal.
- Prepaids: escrow reserves (monthly tax and insurance times months) plus first-year insurance.
- Total closing costs: loan costs plus prepaids plus other fees.
- Cash to close: down payment plus total closing costs.
Five worked examples
60,000 down + 9,000 costs = $69,000.
240,000 x 1% = $2,400.
(6,600 / 12) x 3 = $1,650.
(1,800 / 12) x 3 = $450.
Transfer tax = $0 in Texas.
Traps to check
- Do not add a transfer or stamp tax to a Texas buyer; Texas has none.
- Do not count the down payment as a closing cost.
- Do not base points on the sale price; use the loan amount.
- Do not forget prepaids (escrow reserves and first-year insurance).
- Do not report closing costs alone as cash to close.
Sanity check
- Cash to close is always larger than closing costs alone.
- A larger loan raises origination and points in dollars.
- More escrow months collected raises the reserves.
Practice the patternPass Texas drills closing costs, prorations, and financing math.
Download freeUse the calculator, Math Coach, Trap Library, and Texas-specific questions at passtexasrealestate.com.