Day 15 – Closing Basics

Video Transcript: Closing is the final step in buying a home, but it’s more than just signing papers. Today I’m going to walk you through buyer closing costs, how those costs are typically paid, and what happens the week of closing, including closing day.

Closing costs are the fees and prepaid expenses required to finalize your home purchase. In North Texas, buyer closing costs often range from about two to four percent of the purchase price, depending on the loan type and contract terms.

Common buyer closing costs may include loan fees, the appraisal, credit report fees, title insurance and escrow fees, recording fees, prepaid homeowners insurance, prepaid property taxes, and prepaid interest from the day of funding through the end of the month.

Early in the process, your lender provides a Loan Estimate. At least three business days before closing, you’ll receive a Closing Disclosure showing your final numbers.

Buyers typically pay closing costs using personal savings, approved gift funds, seller concessions negotiated in the contract, or lender credits that reduce upfront costs in exchange for a higher interest rate. Your lender determines what’s allowed based on your loan program, and your Realtor negotiates contract terms within those limits.

During the final week before closing, your lender completes final approval, you review your Closing Disclosure, your Realtor schedules your final walk-through, and you confirm how funds will be delivered to the title company.

On closing day in Texas, you sign your documents, the lender funds the loan, the title company records the transaction, and once funding and recording are complete, the home is officially yours and the keys are released.