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.

Reviewed August 30, 2026 · CFPB Closing Disclosure · Regulation Z · Texas Constitution Article VIII, Section 29

Use the calculator

Cash to closeCosts + funds - credits

Add closing costs and buyer funds, then subtract financed costs, deposits, and credits before adjustments.

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.

PrepaidsSeparate from escrow

Prepaid interest and insurance premiums are distinct from initial escrow deposits for future bills.

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

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.
Other Costs include taxes and government fees, prepaids, initial escrow, and other listed charges.
Total Closing Costs equal Loan Costs plus Other Costs minus lender credits.
Cash to close then adds buyer funds and adjustments, and subtracts financed costs, deposits, seller credits, and other credits.

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

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 combine prepaids and initial escrow into one unlabeled amount.
Do not report closing costs alone as cash to close.

Sanity check

Cash to close can be lower than closing costs when deposits, financed costs, or credits are large.
A larger loan raises origination and points in dollars.
More escrow months collected raises the reserves.

Buyer cash-to-close workbook

Keep Total Closing Costs separate from cash to close. Show every deposit, lender credit, seller credit, financed amount, and buyer adjustment on its own line.

Drill 1 · Loan costs and points$360,000 price, 15% down, 1% origination, 0.75 discount points, and $1,900 other loan services

Find the loan, both percentage charges, and total Loan Costs.

Loan
Points and origination
Loan Costs

Drill 2 · Prepaids and escrow$7,200 annual tax with 3 escrow months; $2,400 annual insurance with 12 prepaid months and 2 escrow months

Find initial tax escrow, prepaid insurance, initial insurance escrow, and the combined amount.

Tax escrow
Insurance amounts
Combined

Drill 3 · Closing Disclosure sequence$8,400 Loan Costs, $5,100 Other Costs, $1,200 lender credit, $45,000 down, $6,000 deposit, and $2,500 seller credit

No financed costs or adjustments. Find Total Closing Costs and cash from the buyer.

Total Closing Costs
Total credits
Cash from buyer

Answer key

Loan is $306,000. Origination is $3,060. Discount points cost $2,295. Total Loan Costs are $7,255.
Tax escrow is $1,800. Prepaid insurance is $2,400. Insurance escrow is $400. Combined amount is $4,600.
Total Closing Costs are $8,400 + $5,100 - $1,200 = $12,300. Deposit and seller credit total $8,500. Cash from buyer is $12,300 + $45,000 - $8,500 = $48,800.