Boerne, TX is sitting at a median sale price of roughly $505,000 right now. Most buyers, especially first-time home buyers in Boerne, TX, put all their energy into saving for the down payment - and that makes sense - but there's a separate pile of money due on closing day that catches a lot of people off guard.
Homes here are spending about 57 days on the market before selling. That moderate pace gives you time to review your loan estimate carefully and understand exactly where every dollar of your cash to close is headed before you ever get to the table.
Understanding Closing Fees vs. Down Payments
Closing costs are the administrative, legal, and loan-related fees required to finalize the transaction. They're completely separate from your down payment, which goes directly toward the purchase price of the home.
Both sides of the deal pay a share of these settlement expenses. Sellers typically cover real estate agent commissions and certain title fees - their side of the ledger usually runs 6% to 10% of the sale price. You, as the buyer, handle the costs tied to securing your mortgage and funding your property tax escrow accounts.
Average Buyer Closing Costs in the San Antonio Metro
Across Texas, buyer closing costs run between 2% and 6% of the purchase price. Where you land within that range depends on your loan type, your lender's origination fees, and how much property tax has to be collected upfront.
For most Boerne buyers using conventional financing, one-time closing fees generally settle between 2% and 3%. That lower end assumes the seller is covering the owner's title policy, which is the standard custom in Texas.
Are Fees Always 3% of the Sale Price?
A flat 3% is a reasonable starting point, not a guarantee. If you're buying at the lower end of the price spectrum, your percentage can drift closer to 4% or 5% - certain flat fees like appraisals and credit reports cost the same no matter what the home is worth.
On the flip side, buyers well above the local median often see their closing costs drop toward 1.5% or 2% of the total price. Cash buyers skip lender fees entirely, which pulls that percentage down further.
Cost Breakdown on a $300,000 to $600,000 Home
Percentages are useful for planning, but you need real numbers to know what to put in your wire transfer. Applying a middle-ground estimate of 2.5% gives you a concrete look at what to expect across different price points. These figures cover loan origination, third-party services, and prepaid escrow items.
- $300,000 home: roughly $7,500 in closing costs
- $400,000 home: roughly $10,000 in closing costs
- $500,000 home: roughly $12,500 in closing costs
- $600,000 home: roughly $15,000 in closing costs
Calculating Your Out-of-Pocket Total
Your total cash to close is your down payment plus your closing costs. Buy a $400,000 house with a 10% down payment ($40,000) and 2.5% in closing costs ($10,000), and your wire transfer runs approximately $50,000.
Your lender is required to provide a Loan Estimate document within three days of your application. That document breaks out the exact fees you'll pay, which lets you compare origination charges between lenders before you commit to one.
Itemized Closing Fees in Kendall County
Here's something Texas gets right: there's no real estate transfer tax. Buyers coming from states where transfer taxes run 1% to 2% of the purchase price save thousands of dollars just by being at a Texas closing table instead.
You will pay local recording fees to Kendall County to put the deed on public record. General documents filed there cost $25 for the first page of a Real Property Record, plus $4 for each additional page, and $0.25 for every name indexed beyond five. Not a major expense, but it's a real line item.
Title Insurance Payer Customs in Texas
Title insurance protects against defects in the property's legal ownership history. In the vast majority of Texas transactions, the seller pays the premium for the owner's title policy - that obligation flows from the seller's responsibility to deliver a clean, marketable title.
You cover the lender's title policy, which protects the bank's interest. Local firms like Kendall County Abstract Company handle these regularly. Buyers and sellers can always agree to different terms in the contract, but the default custom here is well established.
Escrow Fees and Prepaids
The title company charges a settlement or escrow fee for managing the transaction, moving the funds, and recording the paperwork. In the Boerne area, that fee typically runs between $350 and $600.
You'll also need to fund your escrow account for property taxes and homeowners insurance. Lenders require several months of these expenses upfront so the bills are covered when they come due later in the year. How much you bring depends on where you are in the tax calendar when you close.
Who Pays Closing Costs in Texas Real Estate Transactions?
The Texas real estate contract spells out who handles each line item, and most deals follow local custom. Sellers pay the real estate agent commissions, the owner's title policy, and their own loan payoff fees. You pay for your mortgage origination fees, the appraisal, the home inspection, the lender's title policy, and your prepaid property taxes.
Short version: anything related to borrowing money is yours.
How Seller Concessions Work
You can ask the seller to contribute toward your closing costs. It's called a seller concession or seller credit, and it gets negotiated directly into the purchase agreement - nothing informal about it.
Sellers tend to be more open to these credits when their home has been sitting. With Boerne homes currently taking roughly 57 days to sell, there may be room to negotiate a credit that helps you buy down your mortgage rate or cover your origination fees. Worth asking.
Estimating Your Total at the Closing Table
Take a buyer purchasing at Boerne's current median of roughly $505,000 on a conventional loan, with the seller covering the owner's title policy per Texas custom. At 2.5%, the buyer's settlement fees come to approximately $12,625.
That total covers the lender's origination fee, the $350 to $600 escrow fee, the Kendall County recording fees, the appraisal, and the initial escrow deposit for property taxes and insurance.
What Cash Buyers Pay
No mortgage means no origination fees, no appraisal fee, no lender's title insurance, and no forced escrow prepaids. That eliminates the biggest chunk of what conventional buyers pay.
A cash buyer in Boerne still owes the title company's settlement fee, the county recording fees, and a prorated share of the current year's property taxes. All in, cash buyers typically come in below 1% of the purchase price.
Frequently Asked Questions
How much are buyer closing costs on a $400,000 to $500,000 home in Boerne, TX?
Buyer closing costs on a $400,000 home run roughly $10,000, assuming average costs of 2.5%. For a $500,000 home, buyers should expect to pay around $12,500. These estimates include loan origination fees, third-party services, and prepaid escrow items.
Who pays for title insurance, escrow and transfer taxes at closing in Texas?
Sellers customarily pay for the owner's title insurance policy in Texas, while buyers pay for the lender's title policy. Buyers and sellers typically split escrow fees, and neither party pays a transfer tax because Texas does not charge one.
Can I negotiate closing costs or have the seller pay them in Texas?
Yes, buyers can negotiate for the seller to pay a portion of their closing costs through seller concessions. This requires a written agreement in the purchase contract, and the amount a seller can contribute is capped by the buyer's loan program.
Are closing costs usually about 3% of the sale price in Texas?
Closing costs for buyers using conventional loans typically range from 2% to 3% of the purchase price. Buyers purchasing lower-priced homes may see costs closer to 4% or 5%, while cash buyers often pay less than 1%.
How do local Kendall County property tax rates impact the prepaid escrow portion of my closing costs in Boerne?
Higher property tax rates require buyers to bring more cash to closing to fund their escrow accounts. Lenders typically collect several months of property taxes upfront to ensure enough funds are available when the annual tax bill comes due.
When exactly do I need to wire the funds for my closing costs before closing day?
Buyers should wire their total cash to close to the title company at least one business day before the scheduled closing appointment. The title company will provide secure wiring instructions once the lender issues the final settlement figures.
Do buyers pay the real estate agent commissions in Texas?
Buyers do not typically pay the real estate agent commissions, as sellers customarily handle this expense. The fees for a Boerne listing agent are deducted directly from the seller's proceeds at the closing table. Between these commissions and certain title fees, the seller usually covers expenses equal to 6% to 10% of the sale price.
