Feeling unsure about what you will owe on closing day in Schertz? You are not alone. Closing costs can feel murky, especially when you are juggling loan terms, title work, taxes, and HOA fees. This guide breaks down what you will likely pay in Guadalupe County, what is customary in Texas, and simple ways to plan and save. You will walk away with clear numbers to budget and steps to move forward with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time fees you pay to finalize your home purchase. They fall into a few main buckets:
- Loan-related fees: origination, underwriting or processing, application, credit report, discount points if you buy down your rate, and any upfront mortgage insurance tied to your loan program.
- Third-party services: appraisal, survey if required, and inspections. Some inspections are paid before closing.
- Title and settlement: title search, closing or settlement fee, and title insurance premiums for the lender and owner policies. Texas title premiums are state regulated.
- Prepaids and prorations: prepaid interest from closing to your first payment, prorated property taxes and HOA dues, and your first year of homeowners insurance.
- Government and county charges: recording fees for deeds and the deed of trust. Texas does not have a state real estate transfer tax.
- Other items: HOA transfer or move-in fees, flood certification, wire fees, and optional attorney fees.
Your lender’s Loan Estimate and your final Closing Disclosure will itemize these charges for your exact loan and home.
Typical ranges in Schertz
Most buyers should budget about 2 to 5 percent of the purchase price for closing costs, not including your down payment. Where you land in that range depends on your loan type, down payment, rate points, and local fees.
You will receive a Loan Estimate within three business days of your mortgage application that outlines projected costs. Three business days before you sign, you will receive a Closing Disclosure that shows the final numbers so you can compare and ask questions.
Texas title insurance and who pays
Title insurance premiums in Texas are set by the Texas Department of Insurance. You will see separate one-time premiums for the owner’s policy and the lender’s policy, plus a settlement fee from the title company.
In many Texas transactions, it is common for the seller to pay for the owner’s title policy. This is a local custom and is negotiable in the contract. The lender’s policy is typically a buyer cost. Your agent and the title company will confirm who pays what based on your agreement.
Guadalupe County taxes and escrows
Texas property taxes are billed annually and paid in arrears. At closing, taxes are prorated based on your closing date, so you reimburse the seller for the portion of the year you will own the home.
If you are escrowing taxes and insurance, your lender will also collect an initial deposit for your escrow account. This is often several months of taxes and a portion of your insurance, and it varies by closing date and lender requirements.
Schertz spans Guadalupe, Bexar, and Comal counties. This guide focuses on Schertz homes in Guadalupe County. Verify the county on your specific property since county of record affects the tax rate, appraisal district, and recording fees.
Third-party fees to expect
Here are common third-party costs you may see in a Schertz purchase:
- Appraisal: typically a few hundred dollars, depending on property type and timing.
- Survey: often required if a new survey is needed or the existing one is not accepted.
- Inspections: general home inspection, plus optional or lender-required items like termite or pest.
- HOA fees: transfer, resale certificates, or move-in fees when the home is in a homeowners association. Fees vary by community.
- Recording: county charges to record the deed and deed of trust. Amounts vary by document and county.
- Insurance: first-year homeowners insurance premium is often due at or before closing.
Cash-to-close examples
These examples are for planning only. Your actual figures will come from your lender and title company.
Scenario A: $350,000 purchase, 20 percent down, conventional
- Purchase price: $350,000
- Down payment: $70,000
- Loan amount: $280,000
- Closing costs (assume 2.5 percent): $8,750
- Prepaids and escrows: estimate $2,500 to $5,000
- Total cash to close excluding down payment: about $11,250 to $13,750
- Total cash including down payment: about $81,250 to $83,750
Note: If the seller pays the owner’s title policy or offers concessions, your out-of-pocket could be lower.
Scenario B: $350,000 purchase, 3 percent down, mortgage insurance
- Purchase price: $350,000
- Down payment: $10,500
- Loan amount: $339,500
- Closing costs (assume 3.5 percent): $12,250
- Prepaids and escrows: estimate $2,500 to $5,000
- Total cash to close excluding down payment: about $14,750 to $17,250
- Total cash including down payment: about $25,250 to $27,750
Lower down payment reduces upfront cash but increases monthly cost due to mortgage insurance and potentially a higher rate.
Ways to reduce costs
You can take several practical steps to control your out-of-pocket amount:
- Shop your mortgage. Compare Loan Estimates from at least two or three lenders. Ask about lender credits, which reduce costs in exchange for a slightly higher rate, and about discount points to lower your rate.
- Negotiate seller help. In many Texas deals, sellers often cover the owner’s title policy. You can also negotiate additional seller credits, subject to your loan program caps.
- Explore assistance programs. State programs can provide down payment or closing-cost help for eligible buyers. Some offer grants or second loans that do not require immediate repayment. Check eligibility early, since timing matters.
- Time your closing. Prepaid interest depends on your closing day. Closing earlier in the month reduces the daily interest due for that month.
- Shop homeowners insurance. Premiums vary. Get quotes early so you can budget and have your policy ready before the title company’s deadline.
- Confirm HOA costs. Ask for the HOA resale certificate and transfer fee estimate as soon as you are under contract so there are no surprises.
- Request a title fee estimate. The title company can provide a preliminary settlement statement. Review and ask for explanations of any line items you do not recognize.
- Protect your funds. Verify wire instructions with your title company using a known phone number to avoid wire fraud.
Your next steps
- Get preapproved and request a Loan Estimate from each lender you are considering.
- Ask your agent who typically pays for the owner’s title policy in your part of Schertz and build that into your negotiation strategy.
- Verify the property’s county of record to confirm tax rates and recording charges.
- Request estimates early: title fees, HOA transfer and resale certificate, survey, and insurance.
- Calendar key disclosures: your Closing Disclosure will be available three business days before signing. Plan time to review it.
If you want a local walkthrough of your cash-to-close for a Schertz home in Guadalupe County, reach out to Bryan Warhurst for a quick, clear estimate and a plan tailored to your loan and timeline.
FAQs
How much should a Schertz buyer in Guadalupe County budget for closing costs?
- Most buyers should plan for about 2 to 5 percent of the purchase price, with the exact number set by your loan type, rate options, title fees, taxes, and escrow deposits.
Who pays the owner’s title policy in Schertz, Guadalupe County?
- Local custom often has the seller pay for the owner’s policy, but it is negotiable and must be written into your purchase contract.
When do I get the Closing Disclosure and what should I review?
- You will receive it at least three business days before closing; compare it to your Loan Estimate, confirm cash to close, review title fees, taxes, and any lender credits, and ask questions right away.
Can I roll closing costs into my mortgage on a Schertz home?
- You may use lender credits, seller concessions, or certain program structures to reduce cash at closing, but these can affect your rate or monthly payment.
How are property taxes handled at a Schertz closing in Guadalupe County?
- Taxes are prorated based on your closing date, and if you escrow, your lender will also collect an initial deposit to start your tax and insurance account.
Are there Texas programs that help with closing costs?
- Yes, state-level programs may offer grants or second loans for eligible buyers; check income, price, and occupancy rules early to align timing with your closing.
