Closing day should feel exciting, not confusing. If you are buying or selling a home in Henderson, the closing costs can be a surprise if you do not know what to expect. The good news is most fees are predictable, many are negotiable, and Texas has a few rules that help. In this guide, you will learn typical costs for Henderson, who usually pays what, key Texas specifics, and simple ways to verify the exact numbers before you sign. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaid items needed to finalize a home sale. They usually fall into a few buckets:
- Lender fees: origination, underwriting or processing, credit report, appraisal, optional points, flood certification, and tax-service charges if you finance your purchase.
- Title and escrow: title search and exam, lender’s title insurance, optional owner’s title insurance, settlement/escrow fee, recording fees, and lien payoff handling.
- Government charges: county recording fees. Texas does not have a real estate transfer tax.
- Inspections and reports: home inspection, termite, septic or well when applicable, and a survey if required.
- Prepaid items and escrows: homeowner’s insurance premium, property tax escrows, and prepaid interest.
- Seller items: broker commissions, payoff of any mortgages or liens, agreed repairs, and any seller credits to the buyer.
What buyers typically pay in Henderson
If you are financing, plan for about 2% to 5% of the purchase price in closing costs, not including your down payment. Your main items usually include:
- Loan-related fees, the appraisal, credit report, and optional points if you buy a lower rate.
- Inspections such as home, termite, or septic, and a survey if your lender or title company requires one.
- Lender’s title insurance policy; an owner’s policy is optional but strongly recommended in Texas.
- Prepaid interest from funding to your first payment, your first year of homeowner’s insurance, and initial deposits into your tax and insurance escrow.
- Recording fees for the deed and your mortgage documents.
Property taxes are prorated at closing based on the closing date. You pay only your share for the year from that date forward. The exact proration method will be shown on your final settlement statement.
What sellers typically pay in Henderson
Sellers commonly pay about 6% to 10% of the sale price, largely due to real estate commissions that are often 5% to 6% total unless negotiated. You will also see:
- Payoff of your existing mortgage(s) and any liens.
- Your share of prorated property taxes through the closing date.
- A settlement or escrow fee charged by the title company.
- Potentially the owner’s title insurance premium, depending on local custom and what your contract says.
- Repairs or credits you agreed to during negotiations.
Texas rules that affect costs
- No transfer tax: Texas does not charge a state real estate transfer tax, which removes a line item some other states have.
- Title insurance is regulated: Title insurance rates and procedures are overseen by the Texas Department of Insurance. Learn more about how title insurance works in Texas on the Texas Department of Insurance’s title insurance page.
- Recording happens through the county clerk: Your title company coordinates recording with the Rusk County Clerk and will include recording fees on your settlement statement.
- Property tax proration: Taxes are prorated at closing. Values and exemptions are managed by the Rusk County Appraisal District. For statewide property tax basics and exemptions, review the Texas Comptroller’s property tax resources.
- HOA items: If the property is in an HOA, expect an estoppel or transfer fee and a dues statement. Who pays is set by contract or local custom.
What it might cost: quick examples
These ballpark examples are for illustration only. Your numbers will vary based on your loan, negotiations, and the specific property.
$200,000 purchase
- Buyer closing costs: roughly $4,000 to $10,000 (2% to 5%).
- Seller costs: roughly $12,000 to $20,000 (6% to 10%, mostly commission).
$350,000 purchase
- Buyer closing costs: roughly $7,000 to $17,500.
- Seller costs: roughly $21,000 to $35,000.
Your closing timeline and disclosures
If you are taking a mortgage, federal rules require your lender to provide a Loan Estimate within three business days of your application. See the CFPB’s overview of the Loan Estimate. At least three business days before closing, you should receive your final Closing Disclosure from the lender. Compare it to your earlier estimates and ask about any changes.
Separately, the title company will prepare a settlement statement that shows all debits and credits for both buyer and seller. If you are financing, reconcile the title company’s statement with your lender’s Closing Disclosure to ensure every line adds up.
Who pays what in Texas, and what is negotiable
Customs can vary by town and even by transaction. In Henderson, you can generally expect:
- Sellers typically pay broker commissions, mortgage and lien payoffs, and prorated taxes through closing.
- Buyers typically pay loan-related fees and inspections, lender’s title insurance, prepaid interest, and escrow deposits.
- Owner’s title insurance: sometimes the seller pays, sometimes the buyer. Confirm local practice and use your contract to set who covers it.
Items you can negotiate:
- Seller credits toward buyer closing costs.
- Who pays for the owner’s title insurance policy.
- How the settlement or escrow fee is split.
- Which party pays HOA transfer or estoppel fees.
How to verify your numbers in Rusk County
Use this local checklist to lock in accurate figures for your Henderson closing:
- Ask your lender for a written Loan Estimate early and update it after negotiations. The CFPB resources above explain what to expect.
- Request an itemized buyer or seller estimate from your local title company. Ask them to include owner’s title insurance, escrow fees, recording fees, and tax prorations.
- Confirm current recording fees with the Rusk County Clerk through your title company.
- Review property values, exemptions, and tax details with the Rusk County Appraisal District; check statewide guidance on the Texas Comptroller’s property tax page.
- Review contract responsibilities and disclosures using resources from the Texas Real Estate Commission.
Smart ways to reduce closing costs
- Compare lenders: fees and rate options vary. Ask about lender credits versus paying points.
- Negotiate seller credits: a credit can offset buyer closing costs if allowed by your loan program.
- Shop homeowner’s insurance: quotes can differ, and lower premiums reduce your escrow.
- Clarify who pays the owner’s title policy: it is negotiable and can be assigned in the contract.
- Time your closing: closing later in the month can reduce prepaid interest for buyers.
- Verify HOA balances and fees early: avoid last-minute surprises by getting HOA statements upfront.
Ready to run the numbers?
A clear estimate takes the stress out of closing day. If you are buying or selling in Henderson, get your Loan Estimate from your lender, ask a local title company for a detailed settlement estimate, and line them up with your contract terms. If you want a second set of eyes, trusted local guidance, or help negotiating who pays what, reach out to Brittany Sartain for a friendly, no-pressure walkthrough of your closing costs.
FAQs
How much will I pay as a buyer in Henderson?
- Most buyers using a mortgage pay about 2% to 5% of the purchase price in closing costs, excluding the down payment. Your loan type, rate options, inspections, and negotiated credits affect the total.
Is there a real estate transfer tax in Texas?
- No. Texas does not charge a state real estate transfer tax, and you should not see a city or county transfer tax for a typical home sale in Henderson.
Who pays property taxes at closing in Rusk County?
- Taxes are prorated based on the closing date. The seller pays their share up to closing, and the buyer pays from closing through year-end. The title company calculates the split on your settlement statement.
Should I buy owner’s title insurance in Texas?
- Owner’s title insurance is optional but strongly recommended for protection against title defects. Rates and procedures are regulated by the state. Who pays for it is negotiable and set in your contract.
When will I receive the Closing Disclosure from my lender?
- You should get your Closing Disclosure at least three business days before closing. Review it line by line and compare it to your earlier Loan Estimate; the CFPB’s guide explains what to check.
Where can I get an itemized estimate for a Henderson closing?
- Ask your lender for a Loan Estimate and your local title company for a buyer or seller settlement estimate. Your agent can help you compare both and confirm who pays which line items in your contract.
