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.

    Use the calculator
    Cash to closeDown + costs + prepaids

    The total the buyer brings to closing, minus credits and earnest money.

    Closing costsSettlement charges only

    Loan costs, title, recording, appraisal, and prepaids. Excludes the down payment.

    Points base% of the loan

    Origination and discount points use the loan amount, not the sale price.

    PrepaidsReserves + first-year

    Escrow reserves for tax and insurance plus the first-year insurance premium.

    Recording feesCounty charge

    Records the deed and the deed of trust. A flat county fee, not a tax.

    Texas transfer tax$0

    Texas has no statewide real estate transfer or documentary stamp tax.

    The exam setup rule

    1. Compute the loan: sale price minus the down payment.
    2. Loan costs: origination and points as a percent of the loan, plus title, recording, and appraisal.
    3. Prepaids: escrow reserves (monthly tax and insurance times months) plus first-year insurance.
    4. Total closing costs: loan costs plus prepaids plus other fees.
    5. Cash to close: down payment plus total closing costs.

    Five worked examples

    Cash to close$300,000 price, 20% down, $9,000 costs

    60,000 down + 9,000 costs = $69,000.

    Origination$240,000 loan, 1 point

    240,000 x 1% = $2,400.

    Tax reserve$6,600 annual tax, 3 months

    (6,600 / 12) x 3 = $1,650.

    Insurance reserve$1,800 annual insurance, 3 months

    (1,800 / 12) x 3 = $450.

    No transfer tax$300,000 Texas purchase

    Transfer tax = $0 in Texas.

    Traps to check

    1. Do not add a transfer or stamp tax to a Texas buyer; Texas has none.
    2. Do not count the down payment as a closing cost.
    3. Do not base points on the sale price; use the loan amount.
    4. Do not forget prepaids (escrow reserves and first-year insurance).
    5. Do not report closing costs alone as cash to close.

    Sanity check

    1. Cash to close is always larger than closing costs alone.
    2. A larger loan raises origination and points in dollars.
    3. More escrow months collected raises the reserves.
    Practice the patternPass Texas drills closing costs, prorations, and financing math.

    Use the calculator, Math Coach, Trap Library, and Texas-specific questions at passtexasrealestate.com.

    Get Pass Texas

    Sources: Pearson VUE Texas Real Estate content outline (Financing and Settlement), TREC Candidate Handbook, and CFPB consumer guidance on closing costs. Texas has no statewide real estate transfer tax. For exam prep only, not lending advice.

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