Who Pays Closing Costs in Texas in 2026?

Short answer: Both sides pay closing costs, just different ones. Buyers typically cover $8,000–$22,000+ in lender fees, buyer-side title charges, and prepaids (roughly 2–5% of the purchase price). Sellers typically pay 6–10% of the sale price, mostly agent commissions plus the owner’s title policy. In today’s market, sellers are also frequently covering some of the buyer’s closing costs as a negotiated concession.

What Buyers Usually Pay

• Lender fees — Origination, underwriting, and discount points if you're buying down your rate ($1,000–$6,000).
• Lender's title insurance policy — Protects the lender, not you, but it's a buyer expense ($300+, state-set rate schedule).
• Appraisal fee — Usually $350–$850.
• Prepaids — Homeowner's insurance, property tax reserves, and prepaid interest — not fees so much as expenses you'd pay anyway, just collected upfront.
• Recording fees — Filing the deed and mortgage with the county, typically $50–$150.

What Sellers Usually Pay

• Real estate agent commissions — Still the largest line item, typically 5–6% of the sale price total.
• Owner's title insurance policy — Texas convention has the seller paying for this, protecting the buyer against title defects.
• Prorated property taxes — Texas taxes are paid in arrears, so sellers owe their share from January 1 through the closing date.
• Any agreed repairs or concessions — From negotiations during the option period.
• Existing mortgage payoff and release fees — Paying off the seller's current loan and recording the release.

The Part That’s Changed: Seller Concessions

In a market with more inventory and buyers negotiating harder, it’s increasingly common for sellers to also cover part of the buyer’s closing costs as a concession. This isn’t a new rule — it’s a negotiated term in the contract — but how much a seller can contribute depends on the buyer’s loan type:

Concessions can’t exceed the buyer’s actual closing costs — if you negotiate $15,000 but your costs total $12,000, the lender caps it at $12,000.

Good News on Title Costs

Texas title insurance premiums, which are state-regulated, dropped 6.2% as of March 1, 2026 — a modest but real reduction in one of the fixed costs on both sides of the closing table.

Bottom Line

There’s no single answer to “who pays” because both sides pay different pieces by default. What’s changed in 2026 is how often sellers are agreeing to cover part of the buyer’s share, too — which loan program you’re using sets the ceiling on how much of that is possible.