Wondering how much cash you actually need to close on a home in Plano? You are not alone. Closing costs can feel confusing, especially when you are juggling loan terms, inspections, and deadlines. In this guide, you will learn what buyer closing costs include, what is typical in Collin County, how those fees roll into your cash to close, and smart ways to reduce your upfront cash. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees, taxes, and prepaid items due at closing. They are separate from your down payment. Your total cash to close equals your down payment plus closing costs and prepaids, minus any credits or deposits already paid.
Two federal forms keep you aligned on these numbers: the Loan Estimate early in the process and the Closing Disclosure before you sign. These show the itemized costs and your final cash to close.
Lender fees and loan costs
These are charges from your lender and required third parties.
- Origination and lender fees often range from about 0.5% to 1% of the loan amount. Some lenders charge a flat fee instead.
- Appraisal for a typical single-family home can run about $400 to $800, depending on property complexity.
- Credit report, processing, rate lock, and flood certification are usually smaller flat fees.
- Discount points are optional. One point equals 1% of the loan amount and can buy down your interest rate.
In Texas, your lender must provide a Loan Estimate within 3 business days of your mortgage application. You can shop lenders and compare fees, rates, and available lender credits.
Title, settlement, and title insurance
Title and settlement fees cover the title search, escrow, and closing coordination. In Texas, title insurance premiums follow a regulated rate schedule set by the state and vary by purchase price and loan amount.
- It is common in Texas for the seller to pay for the owner’s title insurance policy. This is customary, not a legal requirement, and it is negotiable.
- The buyer typically pays for the lender’s title policy if there is a mortgage.
- Title and settlement fees often range from a few hundred dollars depending on the title company and services.
You can check the official Texas rate schedule through the Texas Department of Insurance title insurance rate schedule.
Prepaids and escrow deposits
These are items collected in advance at closing, separate from lender and title fees.
- Prepaid mortgage interest from the day your loan funds to the end of that month.
- Homeowners insurance. Many lenders collect the first year premium or an initial escrow deposit.
- Property taxes. In Collin County, taxes are prorated at closing, and your lender may collect a reserve for the escrow account, often equal to a couple months of taxes and insurance.
- HOA dues or initiation fees if applicable.
Combined prepaids and escrow deposits can range from a few hundred to several thousand dollars based on your price point, closing date, local tax rates, and your lender’s escrow requirements.
Inspections, survey, and specialty reports
Most Plano buyers order a general home inspection. Depending on the property, you may also need specialty checks.
- Home inspection often falls in the $300 to $600 range.
- Pest inspection can be $50 to $150.
- Surveys commonly range from about $300 to $900. If a current survey is available and acceptable to the title company and lender, you may be able to use it.
- Extra inspections, like roof, HVAC, or sewer scope, add to the total.
Recording fees and local charges
Texas does not have a state real estate transfer tax. Collin County recording and related fees are typically modest flat amounts and depend on document type and length. Check county offices for exact schedules when you are under contract.
Other possible buyer costs
- HOA transfer or estoppel fees
- Courier and wire fees
- Lender-required certifications
- Cash reserves that lenders may require after closing (not a closing cost, but relevant to planning)
How costs add up to cash to close
Your cash to close is a simple formula:
- Down payment
- Plus closing costs, including lender, title, and settlement fees
- Plus prepaids and escrow deposits for taxes, insurance, and prepaid interest
- Plus any HOA or other required deposits
- Minus credits and deposits like seller concessions, lender credits, and your earnest money
Your earnest money deposit is credited toward your bottom line at closing, which reduces how much you must bring.
Illustrative cash to close example
This example is for learning only. Your actual numbers will differ.
- Purchase price: $400,000
- Loan amount: $320,000 (80% loan-to-value)
- Down payment: $80,000
- Estimated closing costs and prepaids:
- Lender fees, appraisal, credit report: $2,500
- Title and settlement fees, lender policy share: $1,500
- Prepaids and escrow deposits: $3,000
- Inspections and survey: $800
- County recording and other fees: $200
- Total illustrative closing costs and prepaids: $8,000
- Earnest money already paid: $5,000
Cash to close equals $80,000 plus $8,000 minus $5,000, which is $83,000.
Timeline and what to expect
You will receive a Loan Estimate within 3 business days after applying for a mortgage. It outlines your estimated closing costs, interest rate, and cash to close. Later, you will receive a Closing Disclosure at least 3 business days before closing with final figures.
- Learn more about the Loan Estimate from the Consumer Financial Protection Bureau’s Loan Estimate overview.
- See how the Closing Disclosure works in the CFPB’s Closing Disclosure guide.
Ways to lower your upfront cash
- Negotiate seller concessions. In Texas, it is common to negotiate credits. In many deals, the seller pays the owner’s title policy, but every contract is unique.
- Ask about lender credits. You may accept a slightly higher interest rate in exchange for a credit that reduces upfront lender fees.
- Compare lenders. Get Loan Estimates from at least two lenders to compare interest rates, points, and fees.
- Shop inspections and surveys. Request quotes and timelines, especially if the property may need specialty inspections.
- Consider down payment assistance programs if you qualify. Some programs also assist with closing costs.
Plano and Collin County action steps
- Get your Loan Estimate early and compare it across two or three lenders.
- Ask your title company for an itemized quote that includes settlement fees and title insurance premiums based on the Texas rate schedule.
- Confirm the latest Collin County property tax timelines and how proration will work for your closing date.
- Request inspection and survey quotes as soon as you are under contract to avoid delays.
Important caveats
Numbers in this article are examples meant to help you plan. Actual costs vary by lender, title company, property, and timing. Always rely on your Loan Estimate and, later, your Closing Disclosure for the final cash to close. For exact local fees and tax schedules, consult Collin County offices and your professional advisors.
Ready to run the numbers for a specific Plano home and map out a clear plan to close? Reach out to Stefany Nau for local guidance, lender introductions, and a calm, organized path to the finish line.
FAQs
How much are buyer closing costs in Plano?
- Many buyers see closing costs, excluding the down payment, in the 2% to 5% range of the purchase price. Your actual costs depend on lender fees, title charges, taxes, and inspections.
Who pays for title insurance in Texas?
- It is common for the seller to pay for the owner’s title policy, but this is a negotiable custom, not a requirement. Buyers usually pay for the lender’s title policy when financing.
Do Plano buyers pay property taxes right away?
- Property taxes are typically prorated at closing, and your lender may collect an initial escrow deposit for upcoming taxes. Exact timing follows Collin County schedules.
When do I see my final cash to close?
- Your lender issues a Loan Estimate within 3 business days of application, then a Closing Disclosure at least 3 business days before closing with your final numbers.
Can I roll Plano closing costs into my mortgage?
- Sometimes. You may be able to finance certain costs or accept a slightly higher rate in exchange for lender credits. Discuss trade-offs with your lender.
