Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · iQRATE Mortgages · Last updated: October 13, 2026
Quick answer
Closing costs are not the same as cash to close. Closing costs are what it costs you to get the loan: origination, discount points, appraisal, and escrow and title. Cash to close is your closing costs plus your prepaids (your own future property taxes, insurance and interest, deposited up front) and your down payment. Of the four states we lend in, Nevada usually needs the least cash to close: by custom the seller pays the 0.51% Clark County transfer tax, there's no tax on the mortgage, and property taxes are low. Texas has no transfer tax, but high property taxes mean larger escrow deposits. Florida buyers pay 0.55% of the loan in state mortgage taxes plus large insurance prepaids. California fees are moderate, but the property tax resets to the purchase price. Our Nevada clients' closing costs typically run about $6,000–$8,000 on full-doc loans and about $15,000 on some non-QM loans.
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Closing costs vs. prepaids: closing costs are not the same as cash to close
Closing costs are not the same as cash to close. Closing costs are what it costs you to get the loan: origination, discount points, appraisal, and escrow and title. Cash to close is your closing costs plus your prepaids, plus your down payment.
- Closing costs are non-refundable fees paid to the companies that make the loan and the transfer happen: lender origination, discount points, appraisal, credit report, title insurance, escrow or settlement, recording fees, and any transfer tax the buyer pays. They're in Sections A–E of your Loan Estimate.
- Prepaids are your own future housing bills, collected up front: the first year of homeowners insurance (and flood insurance, if required), daily interest from closing to the end of the month, and an initial escrow deposit of several months of property taxes and insurance. They're in Sections F and G. They aren't fees. This is money that pays your own bills.
Prepaids are the main reason cash to close varies so much between states. A state with high property taxes or expensive insurance can require thousands more at closing even when the fees are similar. The comparison below shows how.
Nevada vs. California vs. Texas vs. Florida: who pays what at closing
Transfer or deed tax
- Nevada: $2.55 per $500 in Clark County ($5.10 per $1,000, 0.51%) and $2.05 per $500 in Washoe. By custom the seller pays it, and the contract decides.
- California: a county documentary transfer tax of $1.10 per $1,000, plus city taxes in some cities, such as LA's Measure ULA (4% above $5.4 million, 5.5% at $10.9 million or more). By custom the seller usually pays.
- Texas: none.
- Florida: deed doc stamps of $0.70 per $100 (0.70%; $0.60 in Miami-Dade). By custom the seller pays.
State taxes on the buyer's new mortgage
- Nevada, California and Texas: none.
- Florida: doc stamps on the note at $0.35 per $100 (0.35% of the loan) plus intangible tax at 0.2% of the loan, both paid by the buyer. On a $400,000 loan that's $2,200.
Property tax after you buy
- Nevada: the tax bill on a primary residence can rise at most 3% a year (up to 8% on other property). The value isn't reset to your price when you buy, but you must file the county's primary-residence claim to get the 3% cap. Clark County's median bill is about 0.5% of home value.
- California: Prop 13 reassesses the home to its purchase price when it sells: 1% plus local voter-approved levies, often about 1.1–1.3% in total, then at most 2% a year in value increases. A supplemental tax bill usually follows the purchase.
- Texas: combined local rates often run about 1.5–2.2% of value. On a $500,000 home that's roughly $7,500–$10,000 a year (about $625–$835 a month) before exemptions. For owner-occupants, the homestead exemption and a 10% cap on yearly appraisal increases apply after the first year.
- Florida: the homestead exemption and Save Our Homes (assessed value rises at most 3% a year) apply to owner-occupants, but the assessment resets to market value when the home sells.
The buyer's biggest prepaids
- Nevada: small, because tax rates are low. Taxes are paid in advance, so you reimburse the seller for the part of the period after closing.
- California: the first year of homeowners insurance, plus an escrow deposit based on taxes at the new assessed value.
- Texas: property-tax escrow. Taxes are billed in October and paid in arrears, so lenders often collect several months into escrow, commonly 2–6 months depending on the closing month. The seller credits you its prorated share of the year's taxes, which offsets part of it.
- Florida: the first year of homeowners insurance, plus flood insurance where required, plus escrow months. Often the largest prepaids of the four states.
Bottom line for a buyer
- Nevada: usually the lowest cash to close of the four. The seller customarily pays the transfer tax, there's no tax on the mortgage, and property taxes are low. Our Nevada clients' closing costs typically run about $6,000–$8,000 on full-doc loans and about $15,000 on some non-QM loans.
- California: moderate fees, but high prices, and the property tax resets to your purchase price.
- Texas: no transfer tax, but high property taxes push escrow, and cash to close, well above Nevada.
- Florida: usually the most expensive of the four for buyers, because of the buyer-paid mortgage taxes (0.55% of the loan) plus insurance prepaids.
The transfer-tax and mortgage-tax rates are set by statute. Property-tax ranges are typical effective rates, not quotes. Your Loan Estimate shows your actual numbers.
State guides
The iQRATE guarantees (in writing, in every state we serve)
Every guarantee has terms on its own page; see all of them here.
- Rate Match Guarantee: lock with us, then within 3 calendar days show us a competitor's locked Loan Estimate and rate lock agreement for identical terms. We match it, or pay you $1,000 after you close with them.
- Bare Bones Closing Cost Guarantee: no processing, admin, doc-prep, lock or broker fees of our own. Lender and third-party fees pass through at cost and are itemized on your Loan Estimate and Closing Disclosure.
- 17-Day Closing Commitment: our goal for eligible conventional, FHA and VA purchase loans is closing within 17 calendar days of signing initial disclosures.
- All Costs Covered Guarantee: after preliminary underwriting approval on a purchase, if the loan fails to close solely because of our processing or underwriting error, we reimburse up to $1,000 of out-of-pocket costs and a forfeited earnest money deposit up to $5,000.
- $5,000 Seller Guarantee: if a seller accepts your offer based on our fully verified pre-approval and the loan fails solely because of our error, we pay the seller $5,000. That makes your offer stronger.
- 12-Month Rate Drop Guarantee: if rates fall enough within 12 months of closing to lower your rate at least 0.50%, typical lender fees on the refinance are covered through premium pricing, subject to lender availability.
- Lifetime Automated Rate Monitoring: free for closed clients; we email you when the market drops about 0.50% or more below your rate.
- Moving Assistance Mortgage Offer: finance with us and buy through a participating partner agent, and you get help with professional moving costs, tiered by loan amount.
Most of our loans close in under 30 days, and full-documentation loans close in about 17.
Closing costs by state: FAQs
Are closing costs the same as cash to close?
No. Closing costs are what it costs you to get the loan: origination, discount points, appraisal, and escrow and title. Cash to close is your closing costs plus your prepaids and your down payment, minus any credits and your earnest money deposit.
What are prepaids on a mortgage?
Prepaids are your own future housing bills collected at closing: the first year of homeowners insurance (and flood insurance if required), daily interest to the end of the month, and an initial escrow deposit for property taxes and insurance. They aren't fees to the lender.
Which state has the lowest closing costs for buyers: Nevada, California, Texas or Florida?
Nevada usually requires the least cash to close for a buyer. By custom the seller pays the transfer tax, there's no tax on the mortgage, and property taxes are low, so the escrow deposit is small.
Who pays the transfer tax in Las Vegas?
By Clark County custom the seller pays the real property transfer tax of $2.55 per $500 ($5.10 per $1,000). By law buyer and seller are jointly liable, so the purchase contract decides.
Does Nevada reset property taxes when you buy a home?
No. Nevada doesn't reassess a home to its purchase price. The tax bill on a primary residence can rise at most 3% a year under NRS 361.4723, but the buyer must file the county's primary-residence claim to get the 3% cap.
Why does California property tax go up when I buy?
Under Proposition 13, a home is reassessed to its purchase price when ownership changes. The tax is 1% of that value plus local voter-approved levies, so a new buyer often pays far more than a long-time owner.
Does Texas have a transfer tax?
No. Texas has no transfer tax, but property taxes are among the highest in the U.S., often about 1.5–2.2% of value a year, which makes escrow prepaids larger.
How many months of property taxes are collected at closing in Texas?
It depends on the closing month. Lenders commonly collect about 2 to 6 months into escrow, and the seller credits the buyer its prorated share of the current year's taxes, which offsets part of it.
What taxes does a Florida buyer pay at closing?
Buyers who finance pay documentary stamp tax on the note ($0.35 per $100 of the loan) and intangible tax (0.2% of the loan), or $2,200 on a $400,000 loan. By custom the seller pays the deed doc stamps of $0.70 per $100.
Why is Florida cash to close so high?
Besides the 0.55% mortgage taxes, Florida lenders collect the first year of homeowners insurance, plus flood insurance where required, and Florida premiums are among the highest in the country.
How much are closing costs with iQRATE in Nevada?
Our Nevada clients' closing costs typically run about $6,000–$8,000 on full-documentation loans and about $15,000 on some non-QM loans. We add no processing, admin, doc-prep or lock fees of our own under our Bare Bones Closing Cost Guarantee.
How can I lower my cash to close?
Negotiate seller credits, compare lender pricing (we shop more than 100 lenders on complex deals), check down payment assistance programs, and time your closing date. A closing late in the month lowers your prepaid interest.
Sources
- Nevada Department of Taxation, Real Property Transfer Tax FAQs
- NRS 361.4723, partial abatement (3% cap)
- Clark County, property tax abatement
- California Board of Equalization, change in ownership (Prop 13)
- Los Angeles Office of Finance, Measure ULA FAQ
- Texas Comptroller, property tax basics and homestead exemptions
- Florida Department of Revenue, Documentary Stamp Tax
- Florida Statutes §199.133, nonrecurring intangible tax
- CFPB, Loan Estimate explainer
- 12 CFR 1024.17, escrow cushion limit
iQRATE Mortgages · NMLS 1862492 · 6360 S Rainbow Blvd Ste 101, Las Vegas, NV 89118 · (702) 766-3744 · Licensed in NV, CA, TX and FL. This page is general information, not tax or legal advice or a loan offer; your Loan Estimate shows your actual costs.
