What Are Closing Costs for Home Buyers in San Diego?

Closing Costs Are Separate From Your Down Payment

Many first-time buyers are surprised to discover that the down payment is not the only significant upfront cost in a home purchase. Closing costs — the fees and expenses associated with finalizing your mortgage and completing the property transfer — can add 2 to 4 percent of the purchase price on top of your down payment.

Common Buyer Closing Costs in San Diego

• Loan origination fee: Charged by your lender — typically 0 to 1 percent of the loan amount
• Appraisal fee: Required by your lender — typically $600 to $1,000 in San Diego
• Escrow fees: Your share of escrow company fees — typically $1,000 to $2,000
• Title insurance (lender's policy): Required by your lender — typically $500 to $1,500
• Prepaid property taxes: Typically 2 to 3 months into your escrow impound account
• Prepaid homeowner's insurance: First year's premium often required at close
• Home inspection fee: $400 to $700 for a standard single-family home
• HOA document review fees if applicable: $200 to $400

Estimating Your Total Closing Costs

On a $750,000 San Diego home purchase with 10 percent down, total buyer closing costs typically run $15,000 to $25,000. Your lender must provide a Loan Estimate within 3 business days of your application detailing all anticipated closing costs.

Strategies to Reduce Closing Costs

• Request seller concessions — ask the seller to contribute toward your closing costs as part of your offer
• Negotiate lender fees — origination fees and points are sometimes negotiable
• Use a lender credit — accept a slightly higher rate in exchange for the lender covering closing costs
• Shop for title and escrow if your lender allows it

Rieder Homes Group and Buyer Cost Planning

We help buyer clients budget realistically for all purchase costs — not just the down payment — before they begin their home search. Understanding the full financial picture prevents surprises and allows you to make confident offers. Call us at 858-295-0556.

Related Reading on RiederHomes.com:

→ Blog #4: Down Payment Requirements

→ Blog #5: Down Payment Assistance

→ Blog #2: Mortgage Pre-Approval

→ Blog #1: How Much Can I Afford?

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556