Closing Costs: What You're Actually Paying for Beyond the Down Payment

Closing costs on a typical Texoma purchase run roughly 2%–5% of the purchase price for the buyer, and they are separate from your down payment. They cover lender fees, title insurance, escrow or attorney fees, prepaid items like homeowners insurance and property taxes, and recording fees. Sellers have their own closing costs, which usually include the real estate commission and the owner's title policy. The exact mix differs slightly between the Texas and Oklahoma sides of the lake, so here is a detailed look at what each side pays and who gives you the numbers.

Important: all of this is up to negotiation. Who pays what is set by the purchase contract, and local custom is only a starting point. Many times one party negotiates for the other party to pay some or all of the closing costs. A buyer may ask the seller to cover part of their costs, and a seller may ask the buyer to pay for items the seller would normally cover. Whatever the two sides agree to in the contract is what goes on the settlement paperwork.

Who Tells You What Your Closing Costs Will Be?

Closing costs are not a single number someone makes up. Several parties each estimate their own piece, and the lender pulls it together for you:

• Your lender: within three business days of your loan application, the lender must give you a Loan Estimate. It itemizes the lender's fees, the title and settlement charges, prepaid items, and your estimated cash to close. This is the best early look at your closing costs.
• The title company, escrow officer, or closing attorney: they quote the title insurance, escrow or settlement fee, and recording charges, and they send those figures to the lender. Texas closings run through a title company's escrow process. Oklahoma closings more often involve an attorney, depending on the county and lender.
• Your agent: we can give you a good ballpark early, before you have a lender estimate, and we help you read the real numbers. But the lender and title company are the official source.
• The Closing Disclosure: at least three business days before closing, the lender must deliver your final Closing Disclosure. Compare it line by line to your Loan Estimate and ask about anything that changed.

Sellers get their own numbers too. The title company or closing attorney prepares a settlement statement for the seller, and the listing agent usually provides a seller's net sheet up front so the seller knows what they will walk away with.

What Does the Buyer Pay at Closing?

Buyer costs generally fall into four groups:

Lender and loan fees

• Origination, underwriting, and processing fees: what the lender charges to make the loan.
• Appraisal fee: the lender orders the appraisal, and the buyer pays for it (often paid up front when it's ordered).
• Credit report, flood certification, and tax service fees: smaller third-party charges the lender passes along.
• Discount points: optional. You pay more at closing to buy down your interest rate.
• Loan-program charges: an FHA upfront mortgage insurance premium, a VA funding fee, or a USDA guarantee fee, which are often rolled into the loan, and private mortgage insurance (PMI) on some conventional loans.

Title, escrow, and recording

• Lender's title insurance policy: required by the lender to protect the loan, and the buyer typically pays it.
• Title search and escrow or settlement fee: the title company's charge to research the title and handle the closing. This is sometimes split, depending on the contract.
• Attorney fees: where an attorney handles the closing, which is more common in Oklahoma.
• Recording fees: what the county charges to officially record the new deed and mortgage.

Prepaids and escrow deposits

• Homeowners insurance: usually the first year's premium is paid at closing.
• Prepaid interest: interest on your loan from the closing date to the end of that month.
• Escrow (impound) account deposit: a starting cushion for property taxes and insurance if the lender collects them monthly with your payment.
• Prorated property taxes: you reimburse the seller for any taxes they have already paid that cover your period of ownership.

Other buyer costs

• Survey: required by some lenders, especially on acreage and lake properties.
• HOA or POA transfer fees and capital contributions: common in resort and lake communities.
• Home inspection, and any septic or well inspection: paid to the inspector when the inspection happens, not at the closing table, but part of your total cash needed.
• Owner's title policy: in some contracts and areas the buyer pays for it, so check who pays in yours.

What Does the Seller Pay at Closing?

• Real estate commission: usually the largest seller cost. The listing agent's commission is negotiated with the seller. Since the 2024 industry changes, buyer-agent compensation can no longer be advertised on the MLS, but a seller can still offer to pay it or contribute toward the buyer's costs as part of the deal.
• Owner's title insurance policy: in Texas the seller customarily pays for it. In Oklahoma it is negotiated and varies by area and contract.
• Abstract of title (Oklahoma): in Oklahoma the seller pays for the abstract. The abstract is the history of the property's ownership and recorded documents, and it must be brought current so the title can be examined before closing.
• Payoff of the existing mortgage: any loan balance, accrued interest, and any liens are paid from the sale proceeds.
• Prorated property taxes: the seller covers taxes through the closing date.
• Seller's share of escrow, settlement, or attorney fees: depending on the contract and local custom.
• Transfer or documentary taxes: Texas has no state transfer tax. Oklahoma charges a small documentary stamp tax on the deed, which is typically paid by the seller. Your title company will confirm the exact amount.
• HOA fees and resale documents: any unpaid dues, plus the cost of the HOA resale certificate or documents where required.
• Agreed repairs, a home warranty, or seller concessions: if the contract says the seller will fix items after the inspection or cover part of the buyer's closing costs, that comes out of the seller's proceeds.

Everything Is Negotiable: Which Costs Can Be Negotiated or Split?

Most closing costs are not fixed by law. They are set by the contract, so they are negotiable, and it is very common for one party to negotiate for the other to pay a cost. Examples include:

• Buyer asks the seller to pay: a seller concession toward the buyer's closing costs, prepaids, or discount points, often requested after the inspection or in a slower market.
• Seller asks the buyer to pay: the buyer takes on costs the seller would usually cover, such as the owner's title policy, the abstract in Oklahoma, or part of the escrow fee, often in exchange for a stronger price or a faster closing in a competitive market.
• Split between both sides: the escrow or settlement fee, survey, and some title charges are commonly split 50/50.
• The commission: negotiated between the seller and the listing agent, and any offer to pay the buyer's agent is also negotiated.
• Repairs and credits: the seller can fix items after the inspection or give a credit toward closing costs instead.

There are limits. Loan programs such as FHA, VA, USDA, and conventional loans cap how much a seller can contribute toward a buyer's costs, and the contract has to be written so the lender can approve it. Lender fees are set by the lender, so compare Loan Estimates from more than one lender. Your lender can also offer a lender credit in exchange for a slightly higher rate. Your agent can help you decide which costs are worth asking for and which are worth giving up to win the deal.

How Do Texas and Oklahoma Sides of the Lake Differ?

The categories are the same on both sides, but local custom varies: which party customarily pays for the owner's title policy, whether an attorney is involved in closing, whether the seller supplies an abstract (the seller pays for it in Oklahoma), whether a transfer or documentary tax applies, and specific county recording fees all shift as you move between Texas and Oklahoma counties around the lake. Your title company or closing attorney will give you an itemized estimate for your county well before closing day. Ask for it early rather than waiting for the final Closing Disclosure.

How Should You Actually Budget for This?

Use 2%–5% of the purchase price as your planning range as a buyer, then narrow it down with a real Loan Estimate once you are under contract on a specific property. Add that number to your down payment to get your true cash to close, the number that actually determines whether you can close on a given house, not just whether you were approved for the loan amount. If you are selling, ask your agent for a seller's net sheet before you list so you know your likely proceeds. For more on how we guide buyers and sellers, see what a real estate sales consultant actually does.

Closing Costs FAQ

Who pays closing costs, the buyer or the seller?

Both pay their own closing costs. Buyers typically pay lender fees, the lender's title policy, prepaids, escrow deposits, and recording fees. Sellers typically pay the real estate commission, the owner's title policy in Texas, the abstract in Oklahoma, their mortgage payoff, and prorated taxes. Many items can be negotiated in the contract.

How much are closing costs for a buyer in Texoma?

Plan on roughly 2%–5% of the purchase price, separate from your down payment. Your Loan Estimate will give you the real number for your loan and your county.

Who gives me an estimate of my closing costs?

Your lender gives you a Loan Estimate within three business days of applying for the loan, using fee quotes from the title company or closing attorney. At least three business days before closing, you receive the final Closing Disclosure.

Are closing costs negotiable?

Yes. Who pays which closing costs is negotiated in the contract, and it is common for the buyer or the seller to ask the other party to pay some of them. Loan program limits and local custom still apply, so have your agent and lender review any request before you make it.

Can the seller pay my closing costs?

Yes, if the contract says so. A seller concession is a negotiated amount the seller contributes toward the buyer's closing costs. Loan programs limit how much a seller can contribute, so ask your lender.

This is general information, not legal or tax advice. Your lender, title company, or closing attorney will give you the exact figures for your transaction.

This is Part 7 of our "What We Wish Every Buyer Knew" series — next: well, septic, and rural utilities for buyers moving to the lake from the city.