Sticker shock at closing is no fun. If you’re buying or selling a home in Temple, it helps to know exactly which fees show up on the final paperwork and who typically pays them. With clear expectations, you can negotiate with confidence and avoid last-minute surprises. In this guide, you’ll learn what closing costs include, how costs are usually split in Texas and Bell County, what to verify locally, and how your loan program can change the numbers. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, and adjustments you pay in addition to the purchase price and any down payment. They can include title insurance, lender fees, inspections, recording charges, and prepaids like property taxes and homeowners insurance. For a simple overview of common items, see the Consumer Financial Protection Bureau’s explanation of what closing costs include.
If you’re financing, your lender must provide a detailed Loan Estimate early in the process and a final Closing Disclosure before you sign. These forms show your exact costs and who pays each line item.
Who pays what in Temple
Every item is negotiable in your purchase contract, but certain customs are common in Texas and the Temple area.
Buyer typically pays
- Loan charges: application, origination, underwriting, discount points if you buy them, and credit report.
- Lender-required appraisal and any lender-required inspections.
- Home inspection and termite or pest inspection you order.
- Lender’s title insurance policy if you’re getting a mortgage.
- Survey if a new or updated survey is required and not provided by the seller.
- Recording fees for the mortgage or deed of trust.
- Prepaids and escrows: homeowners insurance, prepaid interest, and initial escrow deposits for taxes and insurance.
- A portion of title or settlement fees, depending on local custom and your contract.
Seller typically pays
- Real estate broker commissions as agreed in the listing contract.
- Owner’s title insurance policy. In much of Texas it is customary for the seller to pay for the owner’s policy, though your contract controls.
- Payoff of any existing mortgage and fees to release liens.
- Recording fees for the deed and lien releases.
- Prorated property taxes through the closing date.
- HOA transfer or estoppel fees, Municipal Utility District transfer fees if applicable, and any agreed repair credits or buyer closing-cost concessions.
Often split or negotiable
- Title company settlement or escrow fees.
- Recording fees beyond those tied to the new loan.
- Survey costs if the parties agree to share or the seller provides a recent acceptable survey.
Texas and Bell County specifics
Title insurance and who picks title
It is common in Texas for the seller to pay for the owner’s title policy and for the seller to propose the title company. Both are negotiable and set by the contract. The buyer typically pays for the lender’s title policy when financing.
No state transfer tax
Texas does not have a state real estate transfer tax. You will still see county recording fees, HOA or MUD transfer fees if applicable, and normal title and escrow charges.
Property taxes and proration in Bell County
Property taxes are assessed by the Bell County Appraisal District and collected by the Bell County Tax Office. Taxes are typically prorated at closing so the seller pays for the portion of the year they owned the home and the buyer picks up the remainder. If the seller had a homestead or other exemption, you will need to apply for any eligible exemption after closing because exemptions do not transfer automatically.
Recording with the Bell County Clerk
Deeds, deeds of trust, and lien releases are recorded with the Bell County Clerk. Recording fees are set by the county and change from time to time. Your title company will confirm the exact amount on your Closing Disclosure.
HOA, MUD, and city items
If the property is in an HOA or a MUD, expect fees for records or transfers. Your contract will spell out who pays each fee. Utility transfers or other local assessments may also appear at closing depending on the neighborhood and city services.
How your loan type changes the split
Seller-paid credits can help cover part of a buyer’s closing costs, but each loan program sets limits. Always confirm details with your lender before you negotiate credits.
FHA loans
FHA allows seller concessions up to 6 percent of the purchase price for many buyer costs and prepaids. The lender will outline which items qualify and how the cap applies to your file.
VA loans
VA loans allow certain seller-paid costs and concessions, but there are program rules and limits. Your lender will advise which fees you can and cannot pay and how a seller credit can be structured for a VA buyer.
Conventional loans
Conventional loans set seller-contribution limits based on your down payment and property type. The higher your down payment, the higher the potential seller credit cap in many cases. Ask your lender for your exact limit.
What it might cost: ranges and example
Every transaction is unique, but here is a simple way to budget:
- Buyers often see total closing costs of about 2 to 5 percent of the purchase price, not including the down payment.
- Sellers often see total costs of about 6 to 10 percent of the sale price when you include broker commissions, title costs, prorated taxes, and any agreed concessions.
Illustrative example for a $300,000 home:
- Buyer closing costs around 2 to 4 percent, or about $6,000 to $12,000. That number typically covers appraisal, inspection(s), lender and title fees, prepaids, and initial escrow deposits.
- Seller costs around 6 to 9 percent, or about $18,000 to $27,000. That usually includes commissions, the owner’s title policy if the seller pays it per contract, prorated taxes, and other standard fees.
These figures are examples. Your lender’s Loan Estimate and the title company’s fees on the Closing Disclosure provide the final numbers for your property and contract.
How to plan your budget
- Ask your lender early for a written Loan Estimate. Update it if your rate, price, or credits change.
- Request a line-item estimate from the title company before you finalize negotiations so you know escrow and recording charges.
- Discuss seller credits with your agent and lender so any concessions fit your loan’s rules and the appraisal.
- Schedule inspections quickly so you can negotiate repairs or credits within your contract deadlines.
- Check taxes and exemptions with the Bell County Appraisal District and the Bell County Tax Office to understand this year’s bill and how proration will work.
Local contacts to verify fees
- Bell County Appraisal District for assessments and exemptions: Bell County Appraisal District
- Bell County Tax Office for tax amounts and payment dates: Bell County Tax Office
- Bell County Clerk for current recording fees: Bell County Clerk
- CFPB for federal forms and timelines: Loan Estimate and Closing Disclosure
When you understand which costs are yours, which are the other party’s, and what’s negotiable, you can move through closing with confidence. If you’re planning a move in the Temple-Belton-Killeen corridor or relocating on a tight timeline, get local guidance tailored to your loan type and neighborhood.
Ready to map out your numbers and timeline? Reach out for a clear estimate, smart negotiation strategies, and steady communication from contract to close. Contact Unknown Company to get started today.
FAQs
In Temple, who pays the owner’s title insurance?
- In much of Texas the seller commonly pays for the owner’s title policy, but it is negotiable and controlled by your purchase contract.
How are Bell County property taxes handled at closing?
- Taxes are typically prorated by day so the seller pays up to the closing date, and the buyer covers the remainder of the year on the settlement statement.
Does Texas charge a real estate transfer tax?
- No, Texas does not have a state real estate transfer tax; you will still see county recording fees and any HOA or MUD transfer fees that apply.
What closing costs should a Temple buyer budget?
- Many buyers budget about 2 to 5 percent of the purchase price for closing costs, then confirm the details with a lender-provided Loan Estimate and the title company.
Can a seller pay some of a buyer’s closing costs?
- Yes, seller concessions are common, but they are capped by your loan program and must fit the appraisal and contract terms; confirm limits with your lender.
Who chooses the title company in Texas contracts?
- It is common for the seller to propose the title company, but the choice is negotiable and set by the purchase contract.
How long does closing usually take in Temple?
- Financed purchases often close in about 30 to 45 days depending on lending and title timelines; cash deals can close faster.
