Who Pays Closing Costs When Buying a Home in San Antonio?
Closing costs can be one of the most confusing parts of buying or selling a home in San Antonio.
Buyers often ask:
“How much money will I need besides my down payment?”
Sellers often ask:
“Which expenses will come out of my proceeds?”
The answer is not as simple as saying that the buyer or seller pays all closing costs. A real estate transaction includes multiple expenses connected to the mortgage, title work, escrow, insurance, taxes, brokerage services, and transfer of ownership.
Some expenses are typically assigned to one party under the Texas contract. Others can be negotiated. Certain seller contributions are also limited by the buyer’s mortgage program and actual eligible costs.
Understanding the difference can help San Antonio homebuyers prepare a realistic cash-to-close estimate and help sellers evaluate the true net proceeds from an offer.
What Are Closing Costs in a San Antonio Home Purchase?
Closing costs are the upfront expenses involved in obtaining a mortgage and transferring ownership of a property. They are separate from the home’s purchase price, although some credits and adjustments can reduce the amount a buyer must bring to closing.
A buyer’s closing-related expenses may include:
- Loan origination or underwriting charges
- Appraisal and credit-report fees
- Lender-required title coverage and endorsements
- Recording charges
- Prepaid homeowners insurance
- Initial escrow deposits for taxes and insurance
- Prepaid mortgage interest
- Mortgage insurance or program-specific funding fees
- Inspection-related expenses
- The buyer’s portion of applicable escrow charges
The down payment is not the same as closing costs.
A buyer’s cash to close generally includes the down payment and closing costs, reduced by amounts already paid, seller credits, lender credits, deposits, and other transaction adjustments. The lender’s Loan Estimate provides an initial projection of these figures.
Sellers also have expenses associated with closing. Depending on the contract and transaction, these may include:
- Paying off the existing mortgage and other liens
- Costs to release existing liens
- Preparation of the deed
- Certain tax documents
- The seller’s portion of escrow charges
- Agreed repairs or allowances
- Negotiated contributions toward the buyer’s expenses
- Brokerage compensation owed under separate agreements
- Other costs assigned to the seller by the contract
The final amount paid by each party depends on the purchase contract, financing, negotiated credits, title requirements, property circumstances, and closing statement.
Which Closing Costs Do Buyers and Sellers Pay in Texas?
The current Texas Real Estate Commission One to Four Family Residential Contract for resale properties became effective July 1, 2026. Its settlement-expense section identifies typical seller expenses, typical buyer expenses, and spaces for negotiated contributions.
Under the standard form, typical seller expenses include releasing existing liens, addressing the seller’s loan liability, obtaining certain tax statements or certificates, preparing the deed, and paying one-half of the escrow fee.
The form lists many loan-related and prepaid expenses as buyer expenses, including appraisal fees, origination charges, credit reports, lender-required title coverage, prepaid insurance, tax and insurance reserves, underwriting charges, mortgage insurance, FHA mortgage-insurance premiums, and VA funding fees when required. It also assigns one-half of the escrow fee to the buyer.
However, that does not mean every San Antonio transaction must close using the same financial arrangement.
The contract contains a space where the seller can agree to contribute a specified dollar amount toward eligible buyer expenses. It also separately addresses possible contributions toward brokerage compensation.
Other items may also be negotiated elsewhere in the contract, including:
- Whether the buyer or seller pays for the owner’s title policy
- Who pays for a new survey under the selected survey provision
- Whether the seller reimburses the buyer for an optional residential service contract
- Who completes or pays for agreed repairs
- Whether the seller provides a credit instead of completing certain work
- How applicable homeowners-association expenses are allocated
For buyers, the important number is not simply the purchase price. It is the combination of the down payment, buyer expenses, prepaid items, reserves, credits, and remaining funds after closing.
For sellers, the important number is not simply the offer price. It is the estimated net proceeds after mortgage payoff, title and escrow expenses, agreed contributions, repair obligations, brokerage compensation, and other deductions.
How Seller Concessions Work in San Antonio
A seller concession is a negotiated contribution from the seller toward certain expenses associated with the buyer’s purchase.
For example, a buyer might ask the seller to contribute toward:
- Eligible loan closing costs
- Prepaid taxes or insurance
- Discount points
- A temporary interest-rate buydown
- Other lender-approved buyer expenses
A seller contribution does not usually mean that the seller gives cash directly to the buyer. The agreed amount is reflected on the settlement documents and applied to eligible expenses.
Seller concessions can be useful when a buyer has sufficient income to support the payment but wants to preserve more cash for moving, reserves, repairs, or other post-closing needs.
They can also be part of a seller’s pricing and negotiation strategy. A seller may prefer to provide an expense contribution rather than reduce the sales price by the same amount, depending on market conditions, appraisal considerations, the buyer’s financing, and the seller’s net proceeds.
Seller concessions are not unlimited
The buyer’s loan program may limit how much an interested party can contribute and what the money can cover.
For certain Fannie Mae conventional loans secured by a principal residence or second home, current maximum financing concessions range from 3% to 9% of the lower of the sales price or appraised value, depending on the loan-to-value ratio. Investment-property financing has a lower limit. Contributions also cannot exceed the buyer’s actual eligible closing costs.
VA guidance distinguishes ordinary closing-cost credits from defined seller concessions. The VA permits negotiated credits toward eligible closing costs but limits defined seller concessions to no more than 4% of the property’s reasonable value.
FHA and other mortgage programs have their own rules, calculations, and eligible-expense requirements. The buyer’s lender must confirm how much can be accepted and how the credit may be used.
A large concession written into an offer is not automatically usable. Before submitting the offer, the buyer and agent should coordinate with the lender to determine:
- The maximum allowable contribution
- Which expenses are eligible
- Whether the requested amount exceeds projected closing costs
- Whether the concession affects underwriting or appraisal analysis
- Whether an interest-rate buydown is available
- How the credit changes the estimated cash to close
How Buyers and Sellers Should Evaluate Closing-Cost Negotiations
Closing-cost negotiations should be evaluated as part of the entire offer, not as an isolated request.
Buyers should compare cash to close and monthly payment
A buyer considering homes for sale in San Antonio TX should ask the lender to prepare a realistic Loan Estimate showing:
- Down payment
- Loan charges
- Title and settlement costs
- Prepaid taxes and insurance
- Initial escrow funding
- Seller credits
- Lender credits
- Estimated cash to close
- Estimated total monthly payment
A Loan Estimate is generally provided within three business days after the lender receives a complete mortgage application containing the required information. It includes the estimated interest rate, monthly payment, closing costs, taxes, and insurance.
Buyers should not automatically assume that the offer with the lowest price produces the lowest immediate cost.
For example, an offer with a slightly higher price and a lender-approved seller contribution could require less cash at closing than a lower-priced offer without a contribution. However, increasing the price can also increase the loan balance and may create appraisal concerns. The options should be reviewed with the lender before an offer is submitted.
Sellers should compare net proceeds, not just price
When selling a home in San Antonio Texas, a higher offer is not always the strongest financial offer.
A seller should compare:
- Offered price
- Requested closing-cost contribution
- Requested brokerage-compensation contribution
- Repair or allowance requests
- Financing type
- Appraisal risk
- Option-period terms
- Closing timeline
- Seller-paid title or survey expenses
- Estimated net proceeds
A $400,000 offer requesting a large seller contribution may produce lower proceeds than a slightly lower offer with fewer concessions. The stronger option depends on the entire contract and the seller’s priorities.
Review the final figures before closing
The lender must generally provide the buyer with a Closing Disclosure at least three business days before the mortgage closing. The disclosure shows final loan terms, closing costs, seller credits, and the amount the buyer must bring to closing.
Buyers should compare the Closing Disclosure with the most recent Loan Estimate and immediately ask about unexpected changes.
Sellers should review the seller settlement statement or seller Closing Disclosure to confirm:
- Mortgage and lien payoffs
- Contractual contributions
- Tax and HOA adjustments
- Brokerage expenses
- Repair credits
- Other deductions
- Final proceeds
Taylor & Taylor Services helps buyers and sellers evaluate the real estate side of these decisions across San Antonio, Boerne, Schertz, Cibolo, New Braunfels, and the surrounding Greater San Antonio market.
For buyers, that includes coordinating offer terms with the selected lender before requesting a seller contribution.
For sellers, it includes comparing the complete financial effect of each offer rather than focusing only on the headline purchase price.
Contact Celia and Stephen Taylor to discuss buying or selling a home in Greater San Antonio.
Local Knowledge. Strategic Guidance. Confident Decisions.
Frequently Asked Questions
How much are closing costs when buying a home in San Antonio?
Closing costs vary according to the loan amount, lender, property, insurance, title requirements, taxes, mortgage program, and negotiated credits. Buyers should rely on a lender-issued Loan Estimate rather than a generic percentage when preparing for a particular purchase.
Does the seller have to pay the buyer’s closing costs in Texas?
No. A seller is not automatically required to pay all buyer closing costs. The TREC resale contract includes a space for a negotiated seller contribution toward buyer expenses, but the amount must be agreed to by the parties.
Can a seller pay all of a buyer’s closing costs?
Possibly, but only when the amount is permitted by the buyer’s loan program and does not exceed the buyer’s eligible expenses. The lender must approve the credit and determine how it may be applied.
Can seller concessions be used for the down payment?
Seller contributions generally cannot replace the borrower’s required down payment or minimum borrower contribution. For example, Fannie Mae does not permit interested-party contributions to fund the borrower’s down payment, reserve requirements, or minimum required contribution.
What is the difference between closing costs and cash to close?
Closing costs are the transaction and loan expenses associated with obtaining financing and transferring ownership. Cash to close is the total amount the buyer must provide at closing after accounting for the down payment, closing costs, deposits, seller credits, lender credits, and adjustments.
Who normally pays for the owner’s title policy in San Antonio?
The current TREC resale contract allows the parties to select whether the buyer or seller will pay for the owner’s title policy. The allocation should be confirmed in the executed contract rather than assumed.
Are brokerage fees part of closing costs?
Brokerage compensation is commonly collected or disbursed at closing, but it is governed by separate written agreements. The current TREC resale contract states that brokerage compensation is not set by law and is fully negotiable.
