Texas does a few things differently than most states, and it matters at the closing table. There is no state transfer tax in Texas, which removes a line item that buyers in many other states have to absorb. Title insurance rates are filed with the Texas Department of Insurance, so the premium is the same no matter which title company issues the policy. By custom in Texas, the seller pays for the owner's title insurance policy, though this is negotiable in the contract. Buyers should also watch for Municipal Utility District (MUD) fees if the property sits in one of those districts, since MUD taxes can add to the monthly payment and show up as a separate line at closing.

The loan estimate, delivered within three business days of a complete application, breaks all of this down by category and dollar amount. Comparing loan estimates from multiple lenders is the single most useful thing a buyer can do, since lender fees vary more than any other line item. The closing disclosure follows at least three business days before closing, and the numbers should match the loan estimate within tight tolerances. If something looks off, that's the window to ask questions. Buyers who skip that review sometimes find surprises on closing day that could have been fixed with a quick phone call.