Surprised by how much buyers bring to closing beyond the down payment? You are not alone. When you are buying in Pearland’s Brazoria County side, several fees and prepaids show up on your Closing Disclosure. Knowing what is normal helps you plan, compare lenders, and negotiate with confidence. In this guide, you will learn what closing costs cover, typical ranges, who usually pays in Texas, how seller credits work, and the local checks that matter most. Let’s dive in.
What closing costs cover
Closing costs are the fees to obtain your loan and transfer ownership. They usually include:
- Lender fees: origination, processing, underwriting, appraisal, credit report, flood certification, and tax service.
- Title and closing: title insurance premiums and the settlement agent’s closing fee.
- Escrow and prepaids: initial deposits for property taxes and homeowners insurance, plus prepaid interest.
- Inspections and survey: home inspection, wood‑destroying insect inspection, specialty tests, and a survey if required.
- HOA items: resale certificate, transfer or processing fees, and any dues collected upfront.
- Recording: county recording fees for the deed of trust and deed.
Your down payment is not a closing cost. It is your equity in the home.
How much to budget
A simple planning rule is to budget 2–5% of the purchase price for buyer closing costs, not including your down payment. Some transactions come in below 2% when fees are minimal, while others can exceed 5% if you buy rate points or have high prepaids.
What moves the number up or down:
- Paying points to lower your interest rate.
- The timing of your closing relative to property tax billing and insurance renewals.
- Your lender’s fee structure and third‑party charges.
- Escrow requirements for taxes and insurance.
Pearland and Texas specifics
- No transfer tax in Texas. Texas does not charge a state real estate transfer tax, and Pearland/Brazoria County do not have one. That removes a line item you will see in some other states.
- Title insurance rates are regulated statewide by the Texas Department of Insurance. The title company handles closing in Texas, and settlement fees vary by company.
- Pearland spans multiple counties. This guide focuses on properties inside Brazoria County. Property taxes depend on the specific taxing entities. You can confirm the current jurisdictions and tax history using the Brazoria County Appraisal District (BCAD) property search.
Title and closing fees
Title insurance protects ownership and the lender’s lien. In Texas:
- Owner’s and lender’s title policies: Rates come from state tables. In many Texas markets the seller often pays the owner’s policy by custom, but it is negotiable and set by the sales contract. If you are getting a mortgage, you typically pay the lender’s policy premium.
- Settlement/escrow fee: The title company charges a closing fee, often about $300–$800 depending on the file’s complexity.
- Recording: Brazoria County recording fees for the deed and deed of trust are usually modest, often under a few hundred dollars in total. The buyer typically pays to record the new mortgage; the seller pays to release any prior liens, as agreed in the contract.
Tip: Ask your title company for an itemized quote early, and verify who pays the owner’s policy in your contract.
Lender and loan charges
- Origination, processing, underwriting: These may be a percentage of the loan (about 0.25%–1.0%) or flat fees (about $500–$3,000). Compare Loan Estimates to see how lenders label and price these.
- Appraisal: Typically about $400–$800 in the Pearland area, depending on the property and scope.
- Credit report, flood certification, tax service: Usually small line items. Credit report about $20–$50, flood cert about $10–$50, tax service about $50–$150.
- Points/rate buydown: One point equals 1% of the loan amount. Paying points can lower your rate. Consider your break‑even timeline before you choose this.
- Prepaid interest: Interest from your closing date to the start of your first payment cycle. Depending on when you close and your loan size, this can be a few hundred to a few thousand dollars.
Escrow deposits for taxes and insurance
Most lenders require an escrow account for property taxes and homeowners insurance. At closing, they collect initial deposits so the account can cover upcoming bills.
- Federal rules allow a cushion of up to two months of escrowed disbursements. Many lenders collect about 2–4 months of taxes and insurance at closing.
- Expect 30–60 days of advance mortgage interest and your first months of tax and insurance deposits to be collected at closing.
- In Brazoria County, tax bills are typically issued in the fall for the current tax year. Your closing date relative to the billing cycle can impact both proration and how much the lender collects upfront.
Property tax prorations
Taxes are prorated so each party pays for the time they owned the home during the year. The seller usually provides a credit for their portion after closing, and you fund escrow for the future tax bill. The actual tax rate depends on the property’s taxing authorities, which may include the City of Pearland, Brazoria County, Pearland ISD, and special districts such as MUDs.
Action step: Use the BCAD property search to confirm the exact taxing entities and last year’s tax amount for the property you plan to buy.
HOA fees and resale certificate
If the property is in an HOA, you will see a few extra items:
- Resale certificate: Discloses HOA rules, finances, and fees as required by the Texas Property Code. Sellers commonly order it and may pay the fee by custom, but the contract can assign costs differently. Expect about $100–$400.
- Transfer/processing fees: Some HOAs charge to update ownership records. Payment is negotiable in the contract.
- Dues collected at closing: You may see a partial month or the next month’s dues collected upfront. Monthly dues vary widely by community.
Inspections and survey
- Home inspection: Often about $300–$600 depending on size and scope. You typically pay this directly before closing.
- Wood‑destroying insect (termite) inspection: About $50–$150.
- Specialty inspections: Roof, foundation, pool, septic, or well if applicable. Prices vary.
- Survey: Your lender or title company may require a survey. Costs vary; ask for a local quote. Sometimes an existing survey may be acceptable.
Who pays what in Texas
Customs can vary by neighborhood and by contract, but here is the common pattern in Texas:
- Owner’s title policy: Often paid by the seller in many Texas markets, but negotiable in the contract.
- Lender’s title policy: Usually paid by the buyer when there is a mortgage.
- Lender fees and appraisal: Paid by the buyer.
- Recording fees: Buyer typically pays to record the new deed of trust. Seller pays to release existing liens.
- HOA resale certificate: Seller commonly orders it and often pays the fee, though the contract can assign it differently. Transfer fees are negotiable.
Always confirm your cost allocations in the executed sales contract.
Negotiating seller credits
You can negotiate for the seller to cover some of your costs or provide a closing credit. Lender rules limit how much the seller can contribute based on loan type and down payment. Common guidelines include:
- Conventional: Often capped around 3% of price with less than 10% down, about 6% with 10–25% down, and about 9% with more than 25% down.
- FHA: Often allows up to about 6% for allowable items.
- VA: Often caps certain concessions around 4% and has rules on what costs a seller can cover.
Credits are usually applied to lender fees, title fees, prepaids, escrow deposits, or a rate buydown. They do not apply to your down payment. Always confirm the current concession limits and allowable uses with your lender before finalizing negotiations.
Timing and planning tips
- Compare lenders early. Ask for Loan Estimates and review fees line by line. The lender must also provide a Closing Disclosure at least three business days before closing.
- Get a title quote. Title insurance premiums follow state rate tables, but closing and escrow fees vary by title company. Ask for an itemized estimate.
- Confirm recording fees and minor charges. Have the title company verify the current Brazoria County fee schedule.
- Check taxes early. Use BCAD to verify the property’s taxing entities, current rates, and last bill. Closing near the fall billing cycle can increase escrow deposits.
- Plan for HOA timelines. Resale certificates can take several days. Build that into your option period planning.
- Protect your funds. Confirm wire instructions directly with the title company using a known phone number. Wire fraud is a real risk.
Sample cash‑to‑close scenarios
These examples are estimates to show composition. Your actual numbers depend on your loan, timing, and contract terms.
Example A: $350,000 purchase, 20% down, conventional loan for $280,000
- Estimated buyer closing costs: about 2–4% of price, or $7,000–$14,000.
- Typical breakdown:
- Title, recording, closing fee plus lender title policy: about $1,200–$2,200
- Owner’s title policy: $0–$2,200 depending on contract (seller may pay by custom)
- Appraisal: about $450–$600
- Origination/processing: about $1,400–$2,800
- Prepaid interest and initial escrow for taxes and insurance: about $2,000–$6,000
- Inspections, survey, HOA resale fees: about $500–$1,000
Example B: $500,000 purchase, FHA loan, 3.5% down
- Estimated buyer closing costs: about 2.5–5% of price, or $12,500–$25,000.
- FHA often allows up to about 6% seller concessions for allowable items. Confirm details with your lender.
Quick checklist
- Ask your lender and agent for a sample Loan Estimate based on your target price and loan type.
- Request a title quote that includes both title premiums and all closing fees.
- Pull the property’s tax history and jurisdictions on BCAD and note any MUD or special district.
- If the home has an HOA, plan for the resale certificate fee and turnaround time.
- Review your Closing Disclosure carefully when delivered. Confirm any seller credits and their application.
- Bring certified funds or arrange a verified wire in advance of closing.
Buying in Pearland’s Brazoria County side does not have to include closing‑table surprises. With a 2–5% budget, a firm grasp of each line item, and the right negotiation strategy, you can protect your cash to close and still get the home you want. If you would like a personalized estimate based on your price point, loan type, and timing, reach out to Hershel Chenevert for local guidance and a step‑by‑step plan.
FAQs
What counts as buyer closing costs in Pearland, Brazoria County?
- Lender fees, appraisal, title and settlement charges, escrow deposits for taxes and insurance, inspections, survey, HOA certificate and transfer fees, and recording.
How much should I budget for Pearland buyer closing costs?
- Plan for about 2–5% of the purchase price in addition to your down payment, with the exact amount driven by loan fees, points, and escrow timing.
Do Texas buyers pay a real estate transfer tax at closing?
- No. Texas has no state transfer tax, and Pearland/Brazoria County do not add one, which reduces your total compared with some other states.
Who usually pays for title insurance in Texas closings?
- The seller often pays for the owner’s title policy by local custom, but it is negotiable. The buyer usually pays the lender’s title policy when using a mortgage.
How are property taxes handled at a Pearland closing?
- Taxes are prorated so each party pays their share for the year. You also fund initial escrow deposits for future tax bills per lender requirements.
What is an HOA resale certificate and who pays for it?
- It is a document the HOA produces with key disclosures and fee schedules. Sellers commonly order it and may pay the fee, but the contract can assign this cost to either party.
Can the seller cover some of my closing costs?
- Yes, within loan program limits. Conventional, FHA, and VA loans each cap seller concessions. Confirm exact limits and allowable uses with your lender.
