Unsure what you will actually pay at the closing table in South Lubbock? You are not alone. Closing costs can feel confusing, especially if this is your first time buying or selling. In this guide, you will learn who typically pays what in Texas, the common dollar ranges to budget, local Lubbock County nuances, and simple checklists to keep you on track. Let’s dive in.
Closing costs in Texas, explained
Closing costs are the one-time fees to finalize your home purchase or sale. If you are financing, your lender must give you a Loan Estimate within three business days of your application and a final Closing Disclosure at least three business days before closing. These forms outline your costs so you can review them ahead of time.
Texas has a few important rules and customs to remember. There is no state real estate transfer tax in Texas. Title insurance premiums are regulated by the state, so title companies can quote exact numbers once they know the price and loan amount. In Lubbock County, title companies typically act as the closing agent and handle escrow, title work, and final signing.
Who pays what in South Lubbock
Customs can vary by neighborhood and by contract. Your agent can negotiate many items. Here are the most common practices in Texas and the South Lubbock area.
Typical buyer-paid items
- Loan origination and lender fees
- Appraisal
- Credit report, underwriting, and processing fees
- Lender’s title insurance policy
- Home inspections and any specialty inspections
- Survey if a new one is required
- Prepaid items like interest, the first year of homeowners insurance, and initial escrow deposits
- Recording fees for the mortgage or deed of trust
- A share of the title company escrow or closing fee, if split by contract
Typical seller-paid items
- Real estate broker commissions
- Owner’s title insurance policy premium, which is commonly paid by the seller in many Texas markets
- Prorated property taxes and any HOA dues through the day of closing
- HOA resale certificate or estoppel fee when an HOA is present
- Recording fees to release existing mortgage liens
- Any agreed seller concessions toward buyer costs
- Agreed repairs per the contract
Typical cost ranges you can expect
These ranges help you budget. Exact figures will come from your lender, title company, HOA, and county clerk.
Common buyer cost ranges
- Loan origination and lender fees: 0% to 1% of the loan amount, or flat fees
- Appraisal: about $350 to $700
- Credit report: about $25 to $50
- Lender’s title insurance policy: one-time premium based on loan amount
- Survey: about $300 to $1,000 or more, depending on lot size and complexity
- Home inspection: about $300 to $600, plus any specialized inspections
- Prepaid interest and first-year homeowners insurance: varies by closing date and policy
- Title company escrow or closing fee: typically a few hundred dollars
- Recording fees for mortgage documents: typically tens to low hundreds of dollars
Common seller cost ranges
- Real estate commissions: commonly 5% to 6% of the sale price, negotiable
- Owner’s title insurance premium: one-time premium based on price
- HOA resale certificate or estoppel fee: commonly $75 to $400 when applicable
- Recording fees to release mortgage liens: typically tens to low hundreds of dollars
- Seller concessions: if negotiated, any agreed amount toward buyer costs
Budget rules of thumb
- Buyers: budget roughly 2% to 5% of the purchase price for closing costs, not including your down payment.
- Sellers: plan for commissions plus title and closing fees, which often total 6% to 10% of the sale price when everything is included.
South Lubbock specifics to plan for
Property tax proration
Texas property taxes are paid in arrears. At closing, the seller is typically charged for property taxes through the day of closing, and the buyer’s escrow is set for future bills. Use the Lubbock Central Appraisal District values and the most recent tax rate for precise numbers.
HOAs and resale certificates
Some South Lubbock neighborhoods have HOAs, and some do not. Where an HOA is present, the seller usually provides the required resale certificate, and the fee is commonly a seller cost. The timeline to deliver the certificate is set by Texas law, so request it early.
Recording and title practices
The Lubbock County Clerk sets recording fees and filing requirements. These fees are usually modest. Title companies typically handle closings locally and can provide accurate quotes for title premiums and escrow fees.
Flood zones and insurance
Parts of Lubbock County include mapped flood zones. Your lender will determine whether flood insurance is required. If it is, plan for the policy premium and any initial escrow deposits as part of your closing costs.
Utilities and municipal accounts
Before closing, sellers should confirm final meter reads and any transfer fees with the utility providers. Check for any outstanding municipal liens so they can be cleared at closing.
Timeline and what to expect
- Apply for financing and receive your Loan Estimate within three business days.
- Order inspections and the appraisal. Schedule them promptly to keep your timeline on track.
- The title company completes the title search and prepares closing figures.
- Receive your Closing Disclosure at least three business days before closing and review line by line.
- Complete your final walkthrough and bring any required funds to closing in certified form per title company instructions.
- Sign closing documents. Once funds are disbursed and documents are recorded, the buyer receives keys.
Ways to reduce out-of-pocket costs
- Compare lender fees and rate options. Even small fee differences can add up.
- Ask about seller concessions in your offer. Loan programs may set limits.
- Choose a closing date that reduces prepaid interest when it fits your schedule.
- Use an existing survey if the seller can provide one and the lender accepts it.
- Shop homeowners insurance so your first-year premium is competitive.
- Confirm HOA fees and timelines early so you are not rushed.
Buyer checklist for South Lubbock
- Request a written Loan Estimate and an itemized closing cost estimate
- Ask the title company for exact title premium quotes for lender and owner policies
- Confirm who will pay the owner’s title policy in your contract
- Ask whether the seller will provide an existing survey and if a new one is required
- Get estimated prepaid amounts and initial escrow deposits for taxes and insurance
- Confirm appraisal and inspection fees and any required specialty inspections
- Ask whether flood insurance will be required and request a premium estimate
- Request estimated recording fees and title company escrow fees
- Plan for inspection and appraisal timelines in your contract dates
Seller checklist for South Lubbock
- Ask your agent for a written estimate of seller-side closing costs and commissions
- Confirm responsibility, cost, and delivery timing for the HOA resale certificate
- Request an owner’s title insurance quote and typical seller closing fees from the title company
- Estimate prorated property taxes and check for municipal or utility liens
- Confirm payoff amounts for any existing mortgage and recording fees to release liens
- Decide whether to offer concessions toward buyer costs and get exact figures for your net sheet
Common negotiation points
Who pays the owner’s title insurance?
In many Texas markets, the seller commonly pays the owner’s title policy. This is negotiable, so confirm in your South Lubbock contract.
Can buyers ask sellers to pay some closing costs?
Yes. Buyers can request seller concessions, and sellers can agree to cover part of the buyer’s costs. Loan program rules may cap the amount.
Are closing costs tax deductible?
Some items may be deductible or added to cost basis. Since every situation differs, speak with a tax professional for guidance.
How do you get precise numbers early?
Rely on the Loan Estimate, a title company quote for premiums and escrow fees, any HOA invoices, and the county clerk fee schedule. Get these in writing.
Ready to move forward?
If you want exact figures for your address, connect with a local team that knows South Lubbock norms and timelines. Panhandle Realty Group can help you compare estimates, structure concessions, and plan your closing date so you keep more in your pocket. Reach out to Dane Hensley to get a local breakdown for your home or purchase.
FAQs
What are typical buyer closing costs in South Lubbock?
- Buyers should budget roughly 2% to 5% of the purchase price for closing costs, not including the down payment.
Who usually pays the owner’s title insurance in Lubbock County?
- In many Texas markets the seller typically pays the owner’s policy, but it is negotiable and should be confirmed in the contract.
Do sellers in South Lubbock pay a transfer tax?
- No. Texas does not have a state real estate transfer tax, so there is no separate transfer tax due at closing.
How are property taxes handled at closing in Lubbock?
- Texas property taxes are paid in arrears. The seller is charged up to the day of closing and the buyer’s escrow is set for future bills.
What fees do HOAs add to closing in South Lubbock?
- If there is an HOA, the seller commonly provides and pays for the resale certificate, and there may be transfer or move-in fees per the HOA.
