Closing Costs Explained For Round Rock Buyers

Sticker shock at closing is real. When you first see all the line items on your Closing Disclosure, it can feel like alphabet soup. You worked hard to save your down payment, and now you want clarity on everything else you are expected to pay. In this guide, you’ll learn what closing costs are, typical amounts in Round Rock and Williamson County, which fees are unique to Texas, and how to review your numbers with confidence. Let’s dive in.

What closing costs cover

Closing costs are the fees and prepaid items you pay in addition to your down payment when you buy a home. They include lender charges, title and escrow services, inspections, insurance, taxes, and prorated items like property taxes and HOA dues. If you finance your purchase, your lender must provide a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing that itemizes these costs.

For cash purchases, the title company still provides an itemized settlement statement so you can see every fee and credit clearly.

How much Round Rock buyers typically pay

A common rule of thumb is that buyer closing costs total about 2 to 5 percent of the purchase price. The exact amount depends on your loan program, whether you buy discount points, who pays for the owner’s title policy, and local items like property tax escrows and HOA or MUD-related fees. In Williamson County, your escrow setup for property taxes can be a big piece of the total because Texas property taxes are paid annually.

Use your lender’s Loan Estimate to size your costs early, then compare it to your Closing Disclosure before you sign.

Loan-related fees you may see

If you are financing your Round Rock home, expect several lender charges:

• Origination and underwriting: The lender’s fee to process and approve your loan. Sometimes listed as points, where 1 point equals 1 percent of the loan amount.
• Discount points: Optional fees you can pay to lower your interest rate.
• Appraisal: A third-party valuation ordered by the lender. Typical ranges are about $300 to $700 depending on property type.
• Credit report and verification fees: Modest fees that cover credit pulls and related checks.
• Flood certification: A small fee if required to confirm flood zone status.
• Recording: Texas has no mortgage recording tax, but the county charges small recording fees per document.

Ask your lender to explain which items are prepaids, which are true fees, and whether any lender credits are available.

Title and escrow in Texas

In Texas, licensed title companies commonly handle both title insurance and escrow/settlement. They research ownership and liens, issue title insurance policies, collect and disburse funds, and record documents with the county. Title insurance premiums are regulated by the Texas Department of Insurance, so the base premium is the same statewide for a given price. Title companies also charge separate escrow or closing fees.

• Owner’s title policy: Protects your ownership. Who pays is negotiable in Texas and can vary by market and contract terms.
• Lender’s title policy: Required when you finance. Buyers typically pay this.
• Escrow/closing fee: A fee for coordinating the closing and disbursing funds.
• Recording fees: Williamson County charges modest, flat per-document fees to record the deed and deed of trust.

Because premiums are regulated, you can ask the title company for an exact title insurance quote once you have a contract price.

Inspections, surveys, and repairs

Even when not required, inspections protect your investment.

• Home inspection: Usually $300 to $600 depending on size and features.
• Pest inspection: Often required by some loan programs; commonly $50 to $150.
• Survey or survey waiver: Your lender may require a current survey. Costs vary widely based on lot size and complexity, often several hundred dollars.
• Repair escrows: If repairs cannot be completed before closing, you may agree to hold funds in escrow to complete them after closing.

Schedule these early so you have time to negotiate repairs or credits.

Prepaids, escrows, and property taxes

Prepaids and escrow deposits are not fees. They are money collected up front to pay your insurance and taxes on time.

• First year of homeowners insurance: Lenders usually require payment at closing.
• Escrow account setup: Lenders commonly collect a cushion equal to a few months of property taxes and insurance.
• Property tax proration: Texas property taxes are assessed annually. At closing, the buyer and seller settle the portion each owes for the year based on the closing date. Bills are typically issued in the fall and are due by the end of January, so timing matters for your proration and escrow.

Check the Williamson County Appraisal District and Tax Office for current values, exemptions, and tax billing details, and ask your title company to explain how your proration was calculated.

HOAs, MUDs, and utility items in Round Rock

Many Round Rock neighborhoods have homeowners associations and some communities are in Municipal Utility Districts, especially newer areas.

• HOA transfer and estoppel fees: The estoppel letter confirms the seller’s account status and any pending assessments. The exact fee varies by HOA. Confirm in your contract who pays which HOA fees.
• MUD taxes: If the property is in a MUD, there is a separate annual tax bill to repay infrastructure bonds. These rates can be significant in new subdivisions. Confirm MUD status with the title company, review recent MUD tax bills, and understand how this affects your monthly escrow and annual costs.
• City utility fees: For typical resale homes, you will handle utility transfers. New construction may involve impact or connection fees. If you are buying new, verify any city fees with Round Rock’s Development Services or Utility Billing before you close.

Who pays what and what you can negotiate

Many closing costs are negotiable in Texas. Common patterns include seller payment of agent commissions and, depending on the market and contract, seller payment of the owner’s title policy. You can also negotiate seller credits to offset your closing costs, subject to your loan program’s limits. Your lender can explain the maximum allowed seller contributions for FHA, VA, USDA, or conventional loans.

There is generally no state real estate transfer tax in Texas, and local transfer taxes are not routine.

What to expect in the closing timeline

• Within 3 business days of loan application: You receive a Loan Estimate with itemized fees.
• Leading up to closing: You work with your lender and title company to clear conditions, verify insurance, complete inspections, and finalize title.
• At least 3 business days before closing: You receive a final Closing Disclosure with your actual costs and cash-to-close figure.
• Closing day: You sign documents at the title company or via approved remote process, funds are disbursed, and the deed is recorded with Williamson County.

Keep an eye on dates so there are no last-minute surprises.

How to review your Closing Disclosure

Use this step-by-step checklist to confirm accuracy:

1. Compare to your Loan Estimate. Look for any fee changes and ask for explanations.
2. Lender charges. Confirm origination, points, appraisal, credit report, and any lender credits.
3. Title and escrow items. Verify the title insurance premium and escrow/closing fee. Remember, title premiums follow the state’s regulated schedule.
4. Prepaids and escrows. Check your insurance premium, months collected for escrow, and property tax setup.
5. Prorations. Review tax prorations and HOA dues to confirm the dates and math match your closing date.
6. Other items. Look for survey, pest inspection, recording, courier, or wire fees.
7. Credits. Confirm contract credits, option money, and earnest money are applied properly.
8. Cash to close. Call your escrow officer to verify the final amount and how to deliver funds.

Typical cost examples and ranges

Every transaction is different, but these examples can help you plan:

• Appraisal: $300 to $700
• Home inspection: $300 to $600
• Pest inspection: $50 to $150
• Survey: $300 to $1,000+ depending on lot and complexity
• Title insurance (owner’s and lender’s): Regulated premiums that scale with price; often one of the larger line items
• Escrow/closing fee: About $300 to $800
• Recording fees: Modest, typically tens of dollars per document
• HOA estoppel/transfer: Often $100 to $400, varies by HOA
• Homeowners insurance prepaid: Often $800 to $2,000+ for the first year, varies by home and coverage
• Escrow deposits: Several months of taxes and insurance, which can add $1,000 or more to your cash to close

For a quick estimate, apply the 2 to 5 percent rule to your price, then ask your lender and title company for itemized estimates.

Local checks before you close

• Confirm MUD status and recent bills with your title company and seller disclosures.
• Review property value and exemptions through the Williamson County Appraisal District.
• Check current tax rates and billing timelines with the Williamson County Tax Office.
• If buying new construction, contact the City of Round Rock to ask about any utility connection or impact fees that apply to your specific address.
• Ask your title company for a preliminary settlement statement showing who pays each fee under local custom.

Protect your funds from wire fraud

Always verify wiring instructions with your title company by calling a known, published number before you send any money. Do not rely on emailed wiring details without a live phone confirmation. If anything changes, call again to confirm. Title companies will review their secure process with you.

Quick buyer checklist

• Get your Loan Estimate within 3 business days of application and review it line by line.
• Schedule inspections early and decide on a survey plan.
• Ask about seller credits and who pays the owner’s title policy.
• Verify HOA and MUD status, dues, and recent tax bills.
• Review your Closing Disclosure at least 3 business days before closing.
• Confirm your cash-to-close and verify wiring by phone with the title company.

If you want a second set of eyes on your estimate, a local agent can walk you through the fees and help you negotiate credits that fit your loan program.

Ready to move forward with confidence in Round Rock? Our team combines local knowledge with clear, step-by-step guidance so you know exactly what to expect on closing day. Connect with Bonnie Altrudo to review your numbers and map the smoothest path to the keys.

FAQs

What are closing costs for Round Rock homebuyers?

• Closing costs are the fees and prepaids you pay at closing in addition to your down payment, typically totaling about 2 to 5 percent of the purchase price depending on loan, title policy, and escrows.

How do MUD taxes affect a Round Rock purchase?

• If a property is in a Municipal Utility District, you will have a separate annual MUD tax bill that can raise your total property tax burden and your monthly escrow; verify MUD status with the title company.

Who usually pays for the owner’s title policy in Texas?

• Payment is negotiable and varies by market and contract; sometimes the seller pays, but it is not guaranteed, so confirm in your offer and settlement statement.

When will I see my final closing costs for a Williamson County home?

• Your lender must provide a Closing Disclosure with final numbers at least three business days before closing, giving you time to review and ask questions.

Are there transfer taxes on Texas home purchases?

• Texas does not impose a state real estate transfer tax, and local transfer taxes are not routine, so you generally will not see a transfer tax line item.

Can a seller cover my closing costs with FHA or VA financing?

• Yes, sellers can provide credits within your loan program’s limits; ask your lender for the exact cap for your loan type and structure your offer accordingly.

What is an HOA estoppel letter in Round Rock and why does it matter?

• It is a document from the HOA showing the seller’s account status and any pending assessments; the fee and response time vary by HOA and it is commonly required to close.

How do property tax prorations work in Williamson County?

• At closing, the buyer and seller split the year’s property taxes based on the closing date, factoring in that tax bills are issued in the fall and typically due by January 31.