Buying or selling a home is one of the biggest financial decisions you’ll make, and while everyone focuses on the purchase price, closing fees (or closing costs) can take many buyers and sellers by surprise. These fees are the additional expenses required to finalize a real estate transaction, and in Texas, especially here in San Antonio, they can add up quickly.

The good news? With the right preparation, you can understand, budget for, and even reduce closing costs. Whether you’re a first-time buyer, a luxury seller, or a veteran using a VA loan, this comprehensive guide will walk you through everything you need to know.

What Are Closing Fees?

Closing fees are the “wrap-up” expenses in a real estate deal. They cover the behind-the-scenes work required to make the sale official and legally binding. These costs are paid at the closing table, the final meeting where ownership of the property is transferred.

Typical closing costs include services like:

• Lender processing fees

• Appraisal and inspection charges

• Title searches and insurance

• Escrow handling

• County recording fees

• Prepaid taxes and insurance

Who Pays Closing Costs?

Closing costs are typically split between buyers and sellers, though some are negotiable depending on the market and contract.

Buyer’s Common Closing Costs

• Loan origination fee

• Appraisal fee

• Credit report fee

• Lender’s title insurance

• Inspections

• Escrow deposit for taxes & insurance

• Prepaid interest

Seller’s Common Closing Costs

• Real estate commissions

• Owner’s title insurance

• Prorated property taxes

• HOA transfer/resale fees

• Attorney or title company documentation fees

✅ Closing Fees Checklist

Here’s a simple, practical checklist to help you prepare:

• Loan Origination Fee: Charged for mortgage application processing.

• Appraisal Fee: Covers your home value assessment.

• Credit Report Fee: Covers the cost of checking your credit history.

• Title Search Fee: Ensures the property is legally clear for sale.

Additional Fees

In addition to the standard checklist items, here are other fees you may encounter:

• Home Inspection: A professional inspection to identify potential issues with the property.

• Escrow Deposit: Funds collected to cover future property tax and insurance payments.

• Attorney Fees: Legal fees if an attorney is involved in closing.

• Recording Fees: Charged by the county to officially document property records.

How Much to Expect

In Texas, closing costs typically range between 2% to 5% of the home’s purchase price for buyers. Sellers, however, can expect 6% to 10%, largely due to commissions and title expenses.

Example:

• On a $350,000 home purchase in San Antonio, buyers may owe $7,000–$17,500 in closing fees.

• Sellers on the same transaction could see $21,000–$35,000 in costs.

It’s crucial to budget for these in addition to your down payment.

VA Loan Benefits for Veterans

San Antonio is Military City, USA, and as a veteran-owned brokerage, we know how powerful VA loan benefits can be when it comes to closing costs.

• VA loans limit which fees veterans can be charged.

• Veterans are exempt from private mortgage insurance (PMI).

• Sellers are allowed to pay some of the veteran’s closing costs.

This often means veteran buyers spend thousands less at closing compared to conventional loans.

Final Walk-Through

Before closing, buyers should always perform a final walk-through of the property. This is your last opportunity to ensure:

• All agreed-upon repairs are completed.

• Fixtures, appliances, and inclusions match the contract.

• The property is in the same (or better) condition than when the offer was made.

It’s much easier to resolve issues before signing than after the keys are handed over.

Closing Day Tips

Closing day can feel overwhelming, lots of paperwork, signatures, and financial transfers. Here are a few tips to make the process smoother:

1. Review your settlement statement (CD/ALTA) line by line. Compare it with your contract to ensure no surprise fees.

2. Bring two forms of ID. Most title companies require this for notarization.

3. Ask questions. If anything is unclear, stop and request clarification. This is your transaction — take your time.

4. Confirm your funds. Wire transfer instructions should always be verified by phone with the title company to avoid fraud.

5. Celebrate! Closing is the finish line, you’ve either bought your dream home or successfully sold a major asset.

How to Save on Closing Costs

Buyers can save by:

• Negotiating seller concessions.

• Shopping multiple lenders for better rates/fees.

• Leveraging VA loan benefits.

• Avoiding optional add-ons.

Sellers can save by:

• Pricing strategically to avoid costly concessions.

• Shopping title companies for the best rates.

• Handling repairs proactively.

• Discussing commission options with their Realtor.

Why Closing Costs Matter

Closing fees aren’t just a formality, they directly impact your net proceeds as a seller or your cash-to-close as a buyer. Understanding them upfront:

• Prevents unpleasant surprises.

• Helps you negotiate smarter.

• Keeps your budget on track.

Final Thoughts

Closing fees are an inevitable part of real estate, but they don’t have to be a mystery. By knowing what to expect, you can budget wisely, negotiate effectively, and approach closing day with confidence.

Whether you’re a first-time homebuyer, a luxury seller, or a veteran using your hard-earned VA benefits, my role as your San Antonio Realtor is to ensure the process is smooth, transparent, and financially sound.

Ready to Get a Personalized Closing Estimate?

I’ll walk you through exactly what your closing costs will look like based on your property, loan type, and situation — no surprises.

Christopher Beal, Realtor®
Veteran Real Estate San Antonio: The Beal Group | eXp Realty
📞 (210) 882-8583 • 📧 gobealgroup@gmail.com
🌐 www.veteranrealestatesa.com