Wondering how much cash you really need to close on a home in Central El Paso? You are not alone. Closing costs can feel confusing, especially if this is your first purchase. In this guide, you will learn what buyers typically pay in Texas, how to estimate your cash to close, and smart ways to lower your upfront costs. Let’s dive in.
What closing costs include
Closing costs cover more than just your down payment. As a planning rule, expect a typical range of 2% to 5% of the purchase price for buyer closing costs, which varies by loan type and any negotiated credits. You can review examples of typical fees in this Bankrate overview of closing costs.
Key categories you will see on your Loan Estimate and Closing Disclosure include:
- Lender charges
- Origination, processing, and underwriting fees
- Discount points if you choose to buy down your rate
- Credit report fee
- Upfront mortgage insurance, if your program requires it
- Third‑party services
- Appraisal (often paid upfront), home inspections, survey if required
- Title search and closing fee
- Lender’s title insurance policy
- County recording fees
- Prepaid items
- Prepaid interest from your closing date to the start of your first payment
- One year of homeowners insurance, typically due at or before closing
- Property tax prorations and any required escrow deposit
- HOA transfer fees and prorated dues, if applicable
- Escrow account deposits
- Initial reserves for taxes and insurance, often 1 to 2 months of cushion
By law, your lender must give you a Closing Disclosure at least 3 business days before closing so you can review final numbers. Learn more from the CFPB guide to the Loan Estimate and Closing Disclosure.
Central El Paso specifics and who pays what
Here is what is typical in El Paso and across much of Texas. Remember, many items are negotiable and depend on your contract and loan program.
- Transfer taxes
- Texas does not have a statewide real estate transfer tax. You will still see recording and document fees set by the county. Check the El Paso County Clerk for current recording fee information.
- Title insurance
- In many Texas sales the seller customarily pays for the owner’s title policy, while the buyer pays for the lender’s title policy. Rates are regulated in Texas. These practices are negotiable, so confirm what is in your contract and ask your title company to explain line items. See the Texas Department of Insurance’s title insurance guide.
- Property taxes
- Taxes are prorated at closing based on the closing date. Your lender may also collect escrow reserves for future taxes and insurance. To check values and local tax rates, visit the El Paso Central Appraisal District and the El Paso County Tax Office.
- Typical payer breakdown
- Buyers: lender fees, appraisal, inspections, lender’s title policy, prepaid interest, first‑year homeowners insurance, initial escrow deposits, and recording fees for loan documents
- Sellers: owner’s title policy (customary), broker commissions, payoff of liens, and any agreed credits toward buyer closing costs
How to estimate your cash to close
Follow these steps to build a realistic budget before you write an offer.
- Gather basics
- Purchase price, down payment amount, loan type and estimated interest rate
- Any agreed seller credits or gift funds
- Request a Loan Estimate
- Ask at least one lender for a Loan Estimate. It will show estimated origination charges, third‑party fees, and prepaids. Compare offers. The final figures appear on your Closing Disclosure. Review the CFPB page on Loan Estimates and Closing Disclosures.
- Add non‑lender items
- Inspections, appraisal (often paid ahead), title fees, lender’s title policy, recording fees, escrow deposits, HOA fees if applicable
- Estimate prepaids and escrows
- Prepaid interest depends on when in the month you close
- First‑year homeowners insurance is usually required at or before closing
- Escrow deposit often includes several months of taxes and insurance as a cushion
- Add your down payment
- The down payment is separate from closing costs, but it is part of your total cash to close
- Subtract credits
- Earnest money deposit, seller concessions, and any lender credits reduce your cash to close
- Confirm with your Closing Disclosure
- You must receive it at least 3 business days before closing. Use it to verify final numbers and ask questions early
Example Central El Paso budget
This is an example for illustration only. Your loan program, insurance, and tax prorations will change the numbers.
Assumptions
- Price: 250,000 dollars
- Loan: Conventional 97% LTV with 3% down
- Closing costs estimate: 3% of price = 7,500 dollars
- Prepaids and escrow: 2,000 dollars (insurance, prepaid interest, initial escrow)
- Earnest money: 3,000 dollars
- Seller credit: 2,000 dollars toward buyer costs
Sample calculation
- Down payment: 7,500 dollars
- Closing costs: 7,500 dollars
- Prepaids and escrow: 2,000 dollars
- Total before credits: 17,000 dollars
- Less earnest money: 3,000 dollars
- Less seller credit: 2,000 dollars
- Estimated cash to close: 12,000 dollars
Your lender and title company can refine this with a property‑specific estimate.
Ways to lower your upfront cash
You have options to reduce out‑of‑pocket costs. Check program rules with your lender, since limits vary by loan type.
- Negotiate seller concessions
- Ask for a credit that covers part of your closing costs. Keep appraisal and program limits in mind.
- Consider lender credits
- Some lenders offer credits in exchange for a slightly higher interest rate. Compare lifetime costs to short‑term savings.
- Down payment assistance
- Explore the Texas Department of Housing and Community Affairs programs. Many offer down payment or closing cost help if you meet income, purchase price, and occupancy guidelines.
- If you want one‑on‑one guidance, you can find a HUD‑approved housing counselor who serves El Paso.
- Check possible local resources through El Paso County Housing and Community Development.
- Use gift funds where allowed
- Many loan programs allow gifts with proper documentation. Ask your lender about a gift letter and any required bank statements.
- Shop and compare fees
- Request itemized Loan Estimates from multiple lenders. Ask about the appraisal, processing, and other third‑party fees, and whether any can be reduced or credited.
- Repair credits instead of repairs
- If inspections find issues, a credit for repairs can reduce your cash at closing while keeping the timeline on track
Quick worksheet you can use
Use this checklist to sketch your budget before pre‑approval. Add numbers as you receive quotes.
- Purchase price
- Down payment amount and source
- Earnest money deposit
- Loan origination or points
- Appraisal
- Home inspection(s)
- Survey (if required)
- Title and lender’s policy
- Owner’s policy (if you choose to buy one)
- Recording fees
- HOA transfer and dues (if applicable)
- Homeowners insurance first‑year premium
- Prepaid interest
- Initial escrow deposit for taxes and insurance
- Miscellaneous (notary, courier)
Next steps
You do not have to figure this out alone. Start by requesting a Loan Estimate from a lender, then ask your title company for an itemized estimate using your expected price and closing date. From there, you can fine‑tune your offer strategy, including seller credits, assistance programs, and timing.
If you want a simple, accurate plan for your cash to close in Central El Paso, connect with Celeste Aguilar. You will get step‑by‑step guidance, local resources, and a clear path from pre‑approval to keys in hand.
FAQs
How much should a first‑time buyer budget for closing costs in Central El Paso?
- Plan for about 2% to 5% of the purchase price for buyer closing costs, then confirm with a lender’s Loan Estimate and your title company’s figures.
In Texas, who usually pays for owner’s title insurance?
- It is common for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy. This is customary, not guaranteed, and depends on your contract.
Are there real estate transfer taxes in El Paso?
- No statewide transfer tax applies in Texas. You will still pay county recording and document fees, which are typically a few hundred dollars depending on documents.
What is a Closing Disclosure and when will I receive it?
- The Closing Disclosure is your final, itemized statement of costs. By rule, lenders must provide it at least 3 business days before closing so you can review and ask questions.
Can I use gift funds for my down payment or closing costs?
- Many loan programs allow gift funds with documentation. Your lender will explain the required gift letter and any verification paperwork.
How are property taxes handled at closing in El Paso County?
- Taxes are prorated based on the closing date. Your lender may also collect an initial escrow deposit for taxes and insurance to keep future bills paid on time.
