Closing Costs When You Buy a Home in Plano, Texas: Who Pays What

Texas buyers typically pay about 2% to 5% of the purchase price in closing costs. Your lender fees, title charges, first-year homeowners insurance, and escrow setup make up most of it. The seller customarily pays for the owner's title policy, and Texas has no state transfer tax.

If you are budgeting to buy in Plano, the price on the listing is only part of the cash you need. The rest shows up at the title company on closing day. As a Plano REALTOR® with Berkshire Hathaway HomeServices PenFed Realty Texas, I walk buyers through this before they ever write an offer, because the buyers who feel calm at closing are the ones who knew what to expect.

In Texas, the title company handles your closing. It collects the funds, pays the taxes and fees on your behalf, and records the documents. Your contract sets who pays for what, and most of it is negotiable. Some costs follow local custom. Others are set by your lender and your loan. Your lender's Loan Estimate and your title company's numbers are where your real figures come from, and a planning range is only a starting point.

According to Herring Bank's Texas closing cost guide (reviewed May 1, 2025) and Houzeo's 2026 Texas guide (updated August 4, 2026), Texas buyers typically pay about 2% to 5% of the purchase price. The range is wide because every loan, lender, and home is different. On a $500,000 home, 2% is $10,000 and 5% is $25,000. That is an example of the math, not a quote.

Typical ranges below come from Herring Bank's guide and vary by lender and property.

• Lender charges: an origination fee (0% to 2% of the loan amount) and any discount points you choose to buy. Points are optional.
• Appraisal: about $450 to $900.
• Title work: a title search and examination (about $150 to $300) and a lender's title policy (about $100 to $300).
• Survey: about $400 to $700, if one is needed.
• Escrow setup for property taxes and insurance, collected at closing. This grows with the price of the home and the time of year you close.
• Prepaid mortgage interest, which depends on your closing date.

The Zebra's estimate (updated May 13, 2026) puts the average Plano homeowners policy at about $268 a month, roughly $3,216 a year. Insurance costs have climbed across North Texas, and hail damage is a big part of why. Your own quote depends on the home's age, roof, coverage, and deductible. Because the first year is usually paid at closing, get a quote early so it does not surprise you late.

• The seller customarily pays for the owner's title policy. That is the market norm in Texas, and it can be negotiated in your contract.
• Property taxes are prorated between buyer and seller, so each pays for the days they own the home that year.
• Texas has no state transfer tax, which surprises many buyers moving in from other states.
• Seller-paid closing costs, often called concessions, only happen if they are negotiated into the contract. They are never automatic.

You pay earnest money and usually an option fee shortly after your contract is signed, well before closing. Under the standard Texas contract, both are generally credited toward your purchase at closing, so they are not extra costs on top. Confirm how each is handled in your own contract.

1. Ask your lender for a Loan Estimate as soon as you apply. Lenders must provide it within three business days of your application.
2. Review your Closing Disclosure carefully. You should receive it at least three business days before closing, and it shows your final costs line by line.
3. Get a homeowners insurance quote during your option period, not the week of closing.
4. Ask your agent and your title company, in writing, which items are estimates and which are fixed.
5. Keep your cash-to-close plan flexible by a few thousand dollars to cover changes.

This is the part of the process I take off your plate, especially if you are buying from out of state. Before we write an offer, I connect you with a local lender so you know what you can comfortably afford and what cash you will need. During your option period, I walk you through each line of your Loan Estimate and Closing Disclosure, and I check them against your contract so nothing is a surprise at the title company. If you are relocating, I plan the timeline around your start date and your arrival, so closing day lands when you can actually be here. If a negotiated credit or concession makes sense for your situation, I show you how it works with your lender before we ask for it.

Are closing costs included in the price of a Plano home?

No. Closing costs are in addition to the purchase price and your down payment. Typical buyer costs run about 2% to 5% of the purchase price.

Does the seller pay my closing costs in Texas?

Only if it is negotiated in your contract. Sellers customarily pay for the owner's title policy, but other seller-paid costs, called concessions, are not automatic.

Is there a transfer tax when I buy a home in Plano?

No. Texas does not impose a state transfer tax. Your title company will itemize the charges that do apply.

If you are weighing a move to Plano, Frisco, Prosper, or Celina, I would be glad to talk through your situation. Book a free consultation with Amy Jacobs and we will map out your timeline, your lender conversation, and what to expect at closing. You can read more about Plano real estate and relocating to the area.

This article is general information, not legal, tax, or financial advice. Figures come from the sources listed and reflect the dates shown. Talk with your lender, your title company, and a qualified professional about your situation.

• Herring Bank, Typical Closing Costs in Texas for Buyers and Sellers (reviewed May 1, 2025)
• Houzeo, How Much Are Closing Costs in Texas in 2026? (updated August 4, 2026)
• The Zebra, Homeowners Insurance in Plano, TX (updated May 13, 2026)

Amy Jacobs, ABR®, GRI, MRP, PSA, RENE, "Amy 'Rockstar' Jacobs," Relocation Specialist with Berkshire Hathaway HomeServices PenFed Realty Texas, serving Plano, Frisco, Prosper, and Celina. D Magazine Best in D (2023, 2024, 2025) and D Magazine Best Real Estate Agent (2026). 800+ families served, including an estimated 600+ relocations. Call or text 214-529-2641. Texas license 0638764.