Understanding Closing Costs in McKinney, TX: Who Pays What?

Hey there, future homeowner or seller! Brandon Scribner here, your trusted local real estate expert. One common question I get in our vibrant McKinney, TX, community is all about closing costs. It's a big topic, and frankly, it can feel overwhelming without the right guide. So, let's break it down in a friendly, no-nonsense way.

• *'How much are closing costs, really?'**

This is a fantastic question! Closing costs aren't one lump sum, but fees and expenses paid at transaction close, beyond the property's purchase price and down payment. In Texas, these typically range from 2% to 5% of your loan amount. This isn't a hard rule, as it depends on factors like loan type, lender, and specific property.

What makes up these costs for buyers? You'll often see: * Lender Fees: Origination, underwriting, and sometimes discount points. * Title Company Fees: Title search, escrow fees, and the lender's title insurance policy. * Appraisal and Survey Fees: Required by your lender to confirm value and property lines. * Recording Fees: Paid to the county to officially record ownership. * Pre-paid Items: Property taxes and homeowners insurance premiums to establish your escrow account.

As your top realtor in McKinney, I ensure clients fully understand every line item on their Loan Estimate and Closing Disclosure.

• *'And who pays for these closing costs in Texas?'**

Ah, the million-dollar question! In Texas, the division of closing costs can differ from other states and is often negotiated. Generally, here's how it shakes out:

• What Buyers Typically Pay: Most lender-related fees (origination, underwriting), appraisal, survey (negotiable), and pre-paid items like property taxes and homeowner's insurance. Also, their lender's title insurance policy.

• What Sellers Typically Pay: In Texas, it's customary for the seller to pay for the owner's title insurance policy, protecting the buyer from title defects. Sellers might also cover HOA transfer fees and any outstanding property taxes or HOA dues up to closing.

Here's the key takeaway: while customary practices exist, *everything is negotiable*. As your top realtor in McKinney, I've helped countless clients—especially first time home buyers and those navigating new construction homes—craft offers that strategically address closing costs. A seller might contribute towards a buyer's closing costs, especially in a buyer's market, significantly reducing upfront cash outlay.

My role, as Brandon Scribner, goes beyond finding you a house. I provide comprehensive Home Buying Assistance, guiding you through every financial nuance—from understanding mortgage options to decoding that final Closing Disclosure. With my Accredited Buyer Representative and New Home Construction Certification, I bring expertise to ensure you're making informed decisions and getting the best deal. My commitment is to empower you with clarity and confidence.

Don't let closing costs deter you from your dream home in McKinney. Knowledge is power; having an expert makes all the difference. If you're ready to explore options or chat about the Texas real estate market, I'm here to help. Reach out for a Free Consultation today. Let's make your real estate journey smooth and successful!