Texas Closing Costs in 2026: What McKinney and Collin County Buyers Actually Pay

The quick answer: most Texas buyers I work with in McKinney and the rest of Collin County land somewhere around 2% to 5% of the purchase price in closing costs and prepaids. Where you fall depends on your loan type, your loan amount, the time of year you close (property taxes matter a lot here), and whether the seller is chipping in. Your Loan Estimate is where the real number lives, and you get it within three business days of applying.

What's actually in Texas closing costs?

I break it into four buckets so it's easier to follow:

• Lender costs. Origination or processing/underwriting fees, credit report, and any discount points you choose to buy. These show up in Section A of your Loan Estimate.
• Third-party services. Appraisal, survey, title search, escrow/settlement fee, tax certificate, recording. Some you can shop for, some you can't. The Loan Estimate tells you which.
• Title insurance. In Texas, title insurance premiums are set by the state. The Texas Department of Insurance promulgates the basic premium rates, and new rates took effect March 1, 2026. That means the premium for a given policy amount is the same no matter which title company you pick. What can differ is the escrow fee and add-on endorsements.
• Prepaids and escrow. Your first year of homeowners insurance, prepaid interest for the rest of the month you close in, and a starting balance for your escrow account to cover property taxes and insurance.

Why property taxes make Collin County closing costs feel bigger

Texas has no state income tax, and local governments lean on property taxes instead. In Collin County that means your escrow account needs a real cushion at closing. The bigger surprise for a lot of buyers is timing: Texas property taxes are generally paid once a year for the prior year, so depending on when you close, the seller credits you their share of the year and your escrow account gets funded to cover the upcoming bill. Close in the fall and that escrow deposit looks different than if you close in spring.

My advice: don't compare two offers just by the "cash to close" number without looking at prepaids. A low cash-to-close on one estimate can simply be a smaller escrow deposit, not a cheaper loan.

Who pays what in a Texas purchase?

It's negotiable and it's written into the contract. In practice around DFW, sellers often cover the owner's title policy, and buyers cover their lender costs and the lender's title policy. Your realtor can tell you what's normal in your price range right now. Seller concessions toward your closing costs are also allowed within limits that depend on the loan program, so it's worth asking about when you write an offer.

How the loan type changes your closing costs

• Conventional: no upfront mortgage insurance. If you put less than 20% down you'll usually have monthly PMI instead.
• FHA: there's an upfront mortgage insurance premium, normally rolled into the loan amount rather than paid in cash. For 2026, the FHA loan limit for a one-unit home in Collin County is $563,500 (HUD).
• VA: there's a VA funding fee unless you're exempt (for example, many veterans receiving VA disability compensation). It can usually be financed. As an Air Force vet myself, I always walk through this one line by line.

Also worth knowing: the 2026 baseline conforming loan limit set by FHFA is $832,750 for a one-unit home. Loan amounts above that are jumbo loans, which can come with different costs and requirements.

Five ways to lower what you bring to closing

1. Get two or three Loan Estimates on the same day. Same loan type, same down payment, same lock period, so you're comparing apples to apples.
2. Negotiate seller concessions as part of your offer, especially on homes that have been sitting.
3. Shop the services you're allowed to shop. Your Loan Estimate lists them.
4. Look at down payment assistance. Texas state programs can help with closing costs too, not just the down payment. I wrote a separate guide on those.
5. Think twice about buying points. Points lower your rate but cost cash now. If you might sell or refinance in a few years, they may not pay off.

When do I see the final numbers?

You'll get a Loan Estimate within three business days of applying, and a Closing Disclosure at least three business days before you close. Compare the two. If something changed, ask why. A good mortgage broker can explain every line without getting defensive about it.

Frequently Asked Questions

Sources

• Texas Department of Insurance: Title Insurance Basic Premium Rates (effective March 1, 2026)
• CFPB: What is a Loan Estimate?
• CFPB: What is a Closing Disclosure?
• HUD: 2026 FHA Areas Above Floor (Collin County listing)
• FHFA: Conforming Loan Limit Values for 2026

Information current as of October 2026 and subject to change. For information purposes only; this is not a commitment to lend or extend credit. All loans subject to credit approval. Keith Sullivan, NMLS# 2451429, NXT Mortgage NMLS# 1660690. Equal Housing Opportunity.