Confused about who pays what at closing in Killeen? You’re not alone. Between lender fees, title policies, and tax prorations, the final numbers can feel overwhelming. In this guide, you’ll learn what buyers and sellers typically cover in Bell County, how VA loans around Fort Cavazos can change the math, and smart ways to negotiate your bottom line. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaids due when you buy or sell a home. For buyers, that includes lender charges, third‑party services, and escrows for taxes and insurance. For sellers, it includes commissions, title costs, prorations, and potential concessions.
If you’re comparing mortgages, the Consumer Financial Protection Bureau explains how closing costs work and how to review your Loan Estimate and Closing Disclosure. You can use the CFPB’s overview of closing costs and its Loan Estimate and Closing Disclosure guides to see each fee spelled out:
- Review what closing costs cover through the CFPB’s closing‑costs guidance (CFPB: What are closing costs).
- See where every fee appears on your Loan Estimate (CFPB: Loan Estimate).
- Confirm final amounts on your Closing Disclosure (CFPB: Closing Disclosure).
Who pays what in Texas
In Texas, many items are negotiable by contract. That said, a few customs help you plan:
- It is common for the seller to pay for the owner’s title insurance policy in Texas. The buyer usually pays for the lender’s title policy when there is a mortgage. These practices are customs, not rules, and can be changed by agreement.
- The Texas contract form shows how parties can agree on title policy payment and prorations. You can review the state’s standard form to see where these choices are made (TREC One to Four Family Residential Contract).
- Property taxes are typically prorated so the seller pays through the closing date and the buyer takes over after that. County recording fees for the deed and any deed of trust also apply.
Buyer closing costs in Killeen
If you are financing, buyers commonly budget about 2 to 5 percent of the purchase price for closing costs. Your actual figure depends on your loan type, whether you pay points, and any seller‑paid concessions.
Common buyer items:
- Loan and lender fees
- Origination or processing fees
- Credit report and underwriting
- Lender‑required appraisal (VA appraisal for VA loans)
- Lender’s title insurance policy
- Optional discount points
- Title and third‑party services
- Title search and escrow/settlement fee
- Title endorsements and closing protection letter if required
- Survey (if needed or requested)
- Prepaids and escrows
- Prepaid interest from closing to your first payment
- Homeowner’s insurance (often first year paid upfront or escrowed)
- Initial escrow deposit for taxes and insurance
- Prorated property taxes
- Other possible items
- HOA transfer or resale fees if applicable
- Inspections (general home, pest, septic, or other specialized inspections)
- Flood determination certificate
Tip: Ask your lender for a detailed Loan Estimate early, then compare it line by line to other lenders. The CFPB’s Loan Estimate guide can help you compare offers clearly.
Seller closing costs in Killeen
For sellers, the largest cost is usually the broker commission. Commission amounts are always negotiated and vary by property, market conditions, and brokerage services. Many sellers also pay some title fees and prorations.
Common seller items:
- Commission (negotiated amount)
- Owner’s title insurance policy (customarily seller‑paid in Texas, but negotiable)
- Title company settlement fee (often split or negotiated)
- Deed recording fee
- Prorated property taxes, HOA dues, and utilities through the closing date
- Agreed‑upon repairs or credits after inspection
- Payoff of existing mortgage and any release fees
- Optional home warranty as a concession
VA and Fort Cavazos buyers: what changes
VA loans help many military buyers around Fort Cavazos (formerly Fort Hood) purchase with no down payment in most cases, but there are still closing costs to plan for.
Key VA features:
- VA funding fee. Most VA borrowers pay a one‑time funding fee. You can pay it at closing or finance it into the loan if your lender permits. Learn how the fee works and who is exempt on the VA’s official page (VA funding fee).
- VA appraisal and property standards. A VA appraisal is required and the property must meet Minimum Property Requirements. Any required repairs are negotiated or completed before closing.
- Seller concessions. Sellers can agree to cover some buyer costs within VA program limits. Ask your VA lender for the exact cap and what is allowed for your loan. Explore VA home loan basics here (VA home loans overview).
Practical timing tip: PCS season can create peak demand for inspections and appraisals. Build a little extra time into your contract calendar if you are closing during a busy move window.
Lender credits and seller concessions
If you’re light on cash for closing, two options can help:
- Lender credits. Your lender may cover part of your costs in exchange for a higher interest rate. This lowers cash to close but can raise your monthly payment and total interest over time. Compare a no‑credit option versus a credit/higher‑rate option using a written Loan Estimate so you can see the breakeven.
- Seller concessions. A seller can agree to pay certain buyer costs or fund a temporary rate buydown. Limits apply by loan program (including VA). Always confirm the maximum allowed concession with your lender, then have your agent structure the offer accordingly.
Taxes, prorations, and local fees
- Property tax proration. Texas taxes are calculated on a calendar year. At closing, the seller typically pays taxes up to the closing date and the buyer takes responsibility after. Your title company will show the exact figures on the Closing Disclosure.
- County recording. Bell County charges recording fees for deeds and deeds of trust. The amounts are set by the county and are usually modest relative to the whole transaction. Your title company will list them in your settlement figures.
- HOAs and local assessments. Many Killeen neighborhoods have HOAs. Transfer and resale certificate fees can be significant. Who pays is negotiable by contract, so clarify this early in negotiations.
Simple buyer checklist
- Get written estimates
- Request a Loan Estimate from at least two lenders and compare.
- Ask the title company for an estimated closing statement before you clear contingencies.
- Confirm who pays title policies
- Customarily the seller pays the owner’s title policy and the buyer pays the lender’s policy, but this is negotiable.
- Budget for out‑of‑pocket items
- Appraisal, inspections, lender fees, survey if needed.
- Prepaid insurance and initial tax/insurance escrows.
- Prepaid interest to your first payment date.
- If using a VA loan
- Ask if you can finance the VA funding fee.
- Confirm seller concession limits and any lender overlays.
- Bring to closing
- Valid photo ID, and a cashier’s check or wire for any cash to close (follow title company instructions).
Simple seller checklist
- Expect these costs
- Commission (negotiated), owner’s title policy, title/settlement fees as negotiated.
- Prorated property taxes and HOA dues to the closing date.
- Mortgage payoff and any release fees.
- Get ahead of paperwork
- Provide HOA resale documents and any requested title documents promptly.
- Review buyer requests for repairs or credits before deadlines.
- Plan your net
- Ask your title company and agent for an estimated seller net sheet early.
- Decide whether buyer concessions or a temporary rate buydown could help your sale.
How to estimate your closing costs
- Start with price and loan type. Your loan program and rate affect lender fees, escrows, and any funding fee.
- Ask for written numbers. Get a Loan Estimate from your lender and an estimated closing statement from the title company. Compare totals and line items.
- Factor in negotiations. Decide if you want to ask for or offer concessions, and make sure they fit lender limits.
Ready for a clear, local estimate tailored to your Killeen address and loan type? Reach out to the Sheppard Real Estate Team for a quick, personalized closing‑cost breakdown and next steps.
If you want an experienced local partner to help you plan costs, negotiate smart, and close on time, connect with Bradley Sheppard. We’ll walk you through each number, line by line, so you can move with confidence.
FAQs
What are typical buyer closing costs in Killeen?
- Buyers who finance commonly pay about 2 to 5 percent of the purchase price, depending on loan type, points, and any seller‑paid concessions.
Who usually pays for title insurance in Texas?
- It is customary for the seller to pay the owner’s title policy and the buyer to pay the lender’s policy, but your contract can allocate these differently.
How do VA seller concessions work in Killeen?
- VA allows seller‑paid concessions within program limits to cover certain buyer costs; ask your VA lender for the exact cap and eligible items for your loan.
How are Bell County property taxes handled at closing?
- Taxes are typically prorated so the seller pays up to the closing date and the buyer takes over after; the title company calculates the exact amounts.
Can a seller pay all of my closing costs?
- Many items are negotiable and some loan programs permit sellers to cover a substantial portion of buyer costs, subject to program caps and the final contract.
