How Much Does It Cost to Buy a Home in North Texas in 2026?

How Much Does It Cost to Buy a Home in North Texas in 2026?

By Shawna Martinez

The purchase price is not the only number buyers need to understand.

Buying a home in North Texas may involve a down payment, lender fees, inspection costs, appraisal, insurance, property taxes, prepaid expenses, moving costs, repairs, and reserves.

The goal is not simply to qualify for the mortgage. It is to close without draining every dollar from your account and immediately developing a personal relationship with your credit card.

Down Payment

The required down payment depends on the loan program, borrower qualifications, and property.

Possible financing options may include:

• Conventional loans
• FHA loans
• VA loans
• USDA loans
• Jumbo loans
• Down-payment assistance programs

A lower down payment may preserve cash but can affect the payment, mortgage insurance, interest rate, and qualification.

Closing Costs

The Consumer Financial Protection Bureau states that closing costs commonly range from approximately 2% to 5% of the purchase price, excluding the down payment. Actual costs depend on the loan, lender, location, home, and transaction.

Closing expenses may include:

• Lender fees
• Appraisal
• Credit-related fees
• Title services
• Title insurance
• Government charges
• Prepaid interest
• Property-tax escrows
• Homeowners-insurance escrows

The CFPB recommends reviewing the Loan Estimate and Closing Disclosure carefully and asking the lender to explain meaningful changes.

Earnest Money and Option Fee

Texas buyers may deposit earnest money and pay an option fee according to the contract.

These amounts and deadlines should be confirmed with the buyer’s agent and title company.

Missing a contractual deadline is not the sort of excitement anyone ordered.

Inspection Costs

Inspection expenses vary based on:

• Home size
• Age
• Pool
• Septic system
• Well
• Pier and beam foundation
• Termite inspection
• Sewer scope
• Specialized systems

A standard inspection may not cover every component, so buyers should discuss the property with appropriate professionals.

Appraisal

Many lenders require an appraisal to support the property’s value and loan collateral.

The appraisal fee may be paid before closing and typically appears in the loan disclosures.

Homeowners Insurance

Texas buyers should shop insurance early.

Policies and premiums vary based on the home, location, age, roof, construction, claims history, coverage, deductibles, and carrier.

The Texas Department of Insurance explains that most policies combine dwelling, personal property, other structures, additional living expenses, liability, and medical-payment coverage.

Do not wait until the final days before closing to discover that the insurance quote demolished your monthly budget.

Property Taxes

North Texas property taxes may include several taxing entities.

The amount may depend on:

• Assessed value
• County
• City
• School district
• College district
• Municipal utility district
• Public improvement district
• Homestead or other exemptions

Denton County provides an online estimator, but buyers should verify the property’s taxing jurisdictions and projected taxable value.

HOA and Community Fees

Buyers should investigate:

• Annual or monthly dues
• Transfer fees
• Resale-certificate fees
• Capital contributions
• Front-yard maintenance
• Internet packages
• Amenity fees
• Special assessments

The lowest monthly fee does not automatically represent the lowest total cost.

Moving and Immediate Ownership Costs

Budget for:

• Movers
• Utility deposits
• Appliances
• Window coverings
• Furniture
• Rekeying
• Repairs
• Lawn equipment
• Pest service
• Pool service
• Initial maintenance

The CFPB recommends considering ongoing ownership costs and maintaining funds for repairs and improvements rather than using every available dollar at closing.

Example Planning Range

For a hypothetical $400,000 home, a buyer might need funds for:

• Down payment based on the loan program
• Closing costs potentially estimated around 2% to 5%
• Inspection and specialized testing
• Appraisal
• Earnest money and option fee
• Insurance
• Moving
• Emergency reserves

This is not a quote. Your lender, title company, insurer, and agent should help build a property-specific estimate.

Frequently Asked Questions

How much are closing costs?

A commonly cited planning range is 2% to 5% of the purchase price, excluding the down payment, but actual costs vary.

Do I need 20% down?

Not always. Requirements depend on the loan program and borrower profile.

When should I shop for insurance?

Early in the process, ideally before the option period ends when possible.

Are taxes included in the mortgage payment?

They may be collected through an escrow account, depending on the loan and lender.

Can the seller pay closing costs?

Seller contributions may be negotiated, subject to the contract and loan-program limits.

Build Your Real Home-Buying Budget

A strong buying strategy starts before the first showing.

Reach out for help connecting with trusted lenders, estimating ownership costs, comparing communities, and scheduling private tours throughout North Texas.

Shawna Martinez | Performance Team | Real | 940-395-3474 | shawna@performtexas.com | performtexas.com