As a Texas home seller, your closing costs are partially determined by the amount of the buyer's closing costs you agree to pay. Government-funded loans have a maximum percentage that a seller is allowed to contribute toward those costs. A mortgage lender or a title agency calculates all the fees, taxes and interest that you are required to pay at closing.
Calculate your prorated property taxes. In Texas, you are responsible for paying your portion of real estate taxes from January 1 until the closing date. If you pay the buyer's portion of real estate taxes, the price of the house increases by that amount. You will receive a real estate tax refund for the months you did not legally own the home.
Figure prorated mortgage interest costs. As a Texas seller, you are required to pay mortgage interest on your home loan from the first of the month until the closing date. You can deduct your prorated mortgage interest on your federal tax return at the end of the year.
Determine the cost of discount points paid at closing. The buyer can choose to purchase discount points, often referred to as an origination fee, to reduce the interest rate on her mortgage. You are allowed to pay toward the cost of discount points as long as it does not exceed your maximum seller contribution. One discount point is generally equal to 1 percent of the loan amount.
Calculate lender's fees. According to Roselind Hejl's Austin Real Estate Guide, real estate commission fees, attorney fees, escrow fees, recording fees, tax certificates and courier expenses are all part of the lender's expenses. The site reports that each fee generally runs between $50 and $200.
Determine all repair costs you agreed to pay. After an inspection, a buyer can request that the seller pay needed repairs on the property. Since an acceptable inspection is usually a contingency in the sales contract, you must meet the buyer's repair requests or negotiate a lower price for the home. Otherwise, you risk losing the sale.
Pay home owner's association fees. If you are selling a condominum with association dues, you must pay the transfer fee and resale certification on the property. The buyer pays his portion of the association fees during the months that he legally owns the home.