Staring at a home you love in Raintree and wondering what the check at closing will look like? You are not alone. Closing costs can feel mysterious, especially if this is your first Lubbock purchase or you are trying to balance cash for both fees and future updates. In this guide, you will learn what buyer closing costs typically include in Texas, how much to budget, what is unique in Lubbock and Raintree, and smart ways to lower what you bring to the table. Let’s dive in.
What buyer closing costs include
Closing costs are the one-time fees and prepaid items due when you finalize your mortgage and take ownership. Here is what you can expect to see as a Raintree buyer.
Lender charges
- Loan origination or application fee
- Underwriting, processing, and document preparation
- Discount points if you choose to pay for a lower interest rate
- Credit report fee
- Appraisal fee required by your lender
- Flood certification if applicable
Title and escrow
- Lender’s title insurance policy (buyer commonly pays in Texas)
- Title search and escrow or closing fees
- Owner’s title insurance policy (customarily a seller expense in Texas, but negotiable)
Government and recording
- Lubbock County recording fees for the deed and deed of trust
- Any required municipal transfer or inspection fees (rare in Texas)
Prepaids and escrows
- Prepaid property taxes based on your closing date and proration
- First year homeowners insurance premium or binder
- Prepaid mortgage interest from your closing date until your first payment
- Initial escrow account deposit for taxes and insurance (often 2 to 3 months)
HOA and local items
- HOA transfer or setup fees and required reserves, plus prorated dues if the property is in an HOA
Inspections and surveys
- General home inspection, termite or pest inspection, and any specialized inspections
- Survey or survey update if required by your lender or title company
Miscellaneous
- Attorney fees if used
- Courier and wire fees
How much Raintree buyers should expect
Most buyers in Texas pay closing costs in the range of about 2% to 5% of the purchase price. Texas often lands toward the lower end because it is customary for the seller to pay the owner’s title insurance policy. Your actual number depends on your loan program, the month you close, whether you pay points, and if an HOA applies.
A simple example
For a $300,000 Raintree home, here is a helpful way to think about the range. These are illustrative numbers to help you plan:
- 2%: about $6,000 (lean lender fees, seller covers owner’s title policy, modest prepaids)
- 3%: about $9,000 (common mid-range scenario)
- 5%: about $15,000 (higher if you pay discount points, have larger escrow deposits, or HOA costs)
A typical breakdown might include:
- Lender fees, appraisal, credit report: $1,000 to $3,000
- Title and lender’s title policy plus escrow fees: $800 to $2,000
- Recording and local government fees: $50 to $500
- Prepaids for taxes, insurance, and escrow cushion: $1,000 to $5,000
- Inspections, survey, and HOA transfer: $300 to $1,500
Texas and Lubbock specifics to know
Buying in Lubbock, and specifically in Raintree, comes with a few Texas customs and local details that affect your total.
Title insurance custom
In Texas, it is customary for the seller to pay for the owner’s title insurance policy. The buyer usually pays for the lender’s title policy and certain settlement fees. This reduces your closing costs compared with states where buyers pay both policies. Confirm the split in your contract since it is negotiable.
No Texas transfer tax
Texas does not have a state real estate transfer tax. Local transfer fees are rare, so this is one less line item for most Raintree buyers.
Recording fees
Recording charges are set by Lubbock County. The dollar amount depends on the document types and page counts. Your title company will add the exact fee to your settlement statement.
Property taxes and prorations
Property taxes are assessed through the Lubbock Central Appraisal District and collected through county and city tax offices. At closing, taxes are prorated between buyer and seller based on your closing date and the local tax calendar. Because rates vary by jurisdiction, your title company will calculate the current proration for your property.
HOA considerations in Raintree
Some Raintree properties are part of an HOA that may charge transfer or setup fees and require a reserve contribution. Always confirm HOA status with the listing information and request the resale certificate early so you know exact figures.
How loan type and structure change costs
Your loan program and how you structure the deal can raise or lower what you pay upfront.
Conventional loans
You will typically pay standard lender fees and optional discount points. Seller concessions are allowed up to certain limits set by the loan guidelines.
FHA loans
FHA allows higher seller concessions in many cases, which can help cover some of your closing costs. You still pay lender, title, and prepaid items as required.
VA loans
VA has specific rules for what the seller can pay and what fees are the veteran’s responsibility. A VA funding fee may be financed into the loan or paid at closing, depending on your status and any exemptions.
USDA loans
USDA programs can allow seller concessions similar to FHA. Your lender will detail what can be covered.
Financing choices
- Paying discount points increases closing costs now but lowers your monthly payment.
- Rolling certain costs into your mortgage can reduce cash at closing, but it increases your loan amount and interest over time.
- A no-closing-cost option usually raises the interest rate or rolls fees into the loan. Review the long-term cost with your lender.
A Raintree buyer’s path to an accurate estimate
Getting precise numbers early helps you plan your cash and avoid surprises. Use this step-by-step approach.
- Ask for a Loan Estimate
- Request a Loan Estimate from your lender as soon as you are serious about an offer. Compare estimates from more than one lender so you can see differences in fees and points.
- Confirm title and recording fees
- Contact a local title company for a quote on the lender’s title policy and settlement fees. Ask them to include Lubbock County recording charges.
- Verify the HOA status
- Confirm whether the property is in an HOA. If it is, request the resale certificate and ask about transfer fees, setup costs, reserves, and prorated dues.
- Clarify who pays what in the contract
- Confirm whether the seller will pay the owner’s title policy and whether any seller concessions will be applied to your costs. Make sure these items are clearly written in your purchase contract.
- Understand tax proration and escrows
- Ask the title company how property taxes will be prorated based on your closing date. Your lender will also estimate your initial escrow deposit for taxes and insurance.
- Review your Closing Disclosure
- You will receive a Closing Disclosure a few days before closing. Review every line item and ask questions right away if something does not look right.
- Weigh points and interest rate
- If you plan to own the home for many years, paying points may make sense. If you need to keep cash available for updates, a higher rate with lower closing costs may be better. Run the break-even math with your lender.
Ways to reduce what you pay upfront
- Shop lenders. Even small differences in origination and points can save hundreds to thousands of dollars.
- Request seller concessions if market conditions allow. In a more balanced market, sellers are often open to covering some of your closing costs.
- Close later in the month. This can reduce the prepaid interest you owe between closing and your first payment.
- Compare homeowners insurance quotes. A lower premium can reduce your first year payment and your escrow deposit.
- Confirm the title policy split. Make sure the contract reflects the Texas custom of the seller paying the owner’s policy when possible.
- Avoid unnecessary fees. Ask your lender and title company to explain any fee you do not recognize.
Example cost snapshot for a $300,000 Raintree home
Every property is different, but this sample shows how numbers can add up. This is for illustration only and will vary by lender, timing, and contract terms.
- Lender fees, appraisal, credit report: $1,800
- Title and lender’s title policy plus closing fee: $1,400
- Recording and government fees: $250
- Prepaids for taxes and insurance, plus initial escrow: $3,500
- Inspections and survey: $900
- HOA transfer and prorated dues if applicable: $400
Estimated total: about $8,250 (a bit under 3% of purchase price). Your exact figure will be set by your lender’s Loan Estimate and your title company’s settlement statement.
How Real Estate by Anna helps you plan
You should not have to guess about closing costs while juggling loan options and planning for future updates. With a design-first, renovation-informed approach, we help you line up your cash at closing with your first-year home priorities. We request detailed estimates early, confirm who pays what in the contract, and calibrate your budget so you can move in with confidence.
If you are buying in Raintree, we will help you compare lender scenarios, understand the tradeoffs between points and rate, and balance closing costs with any must-do repairs or design upgrades after closing. When you know the numbers, you can make better choices.
Ready to get a tailored estimate for your Raintree purchase and a plan for closing with fewer surprises? Schedule a free consultation with Real Estate by Anna.
FAQs
How much should a Raintree buyer bring to closing?
- Expect about 2% to 5% of the purchase price for closing costs, plus your down payment and any prepaids; your Closing Disclosure will show the exact amount a few days before closing.
Who pays the owner’s title policy in Texas?
- By Texas custom, the seller typically pays for the owner’s title insurance policy, while buyers usually pay the lender’s policy and certain settlement fees; the split is negotiable in your contract.
Are buyer closing costs in Texas lower than other states?
- They can be, often because sellers customarily pay the owner’s title policy; your total still depends on lender fees, prepaids, HOA items, and whether you pay discount points.
Can I roll closing costs into my mortgage?
- Yes, if your lender and loan program allow it; this reduces cash at closing but increases your loan amount and interest over time, so review the long-term cost with your lender.
Where can I get an exact estimate for a Raintree home?
- Request a Loan Estimate from your lender and a preliminary settlement statement from a local title company; also ask the listing agent for HOA transfer fees and recent seller concession trends in the area.
