Closing costs are the fees to finish your purchase, on top of your down payment. They commonly run about 2% to 3% of the price, and knowing them in advance makes your budget solid.
What is included
- Lender fees and points. Charges for making the loan, and optional points to lower your rate.
- Appraisal and credit report. Paid to third parties during underwriting.
- Title insurance and escrow fees. Protects your ownership and pays the neutral company handling the transaction.
- Recording and notary fees. Small charges for the county and signing.
- Prepaid items. Property taxes and insurance collected at closing, and prepaid loan interest.
- Inspections. Usually paid when the work is done, before closing.
Who pays what
In California the seller customarily pays the county transfer tax. Other fees are shared by custom or by negotiation, and many buyers ask for a seller credit toward closing costs as part of the offer.
Ways to lower your cash need
1. Negotiate a seller credit. 2. Compare lender fees and ask about lender credits. 3. Ask about closing cost assistance programs. See down payment help. 4. Choose your closing date to control prepaid interest.
Estimate yours
The closing cost estimator gives realistic ranges from your price and down payment. Your lender's Loan Estimate, delivered within days of your application, gives exact numbers.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
Estimates only. Your Loan Estimate and closing disclosure show your actual costs.
More in Buyer Guides
- First-Time Buyer: The 10 Steps — A friendly checklist from first budget to keys, built for people buying for the first time.
- From Accepted Offer to Keys: Your Day-by-Day Timeline — What happens in the roughly 30 days after your offer is accepted, and what to do each week.
- Working With a Buyer's Agent: The Written Agreement and How It Works — What the buyer representation agreement covers, how agents are paid, and what to expect from a great one.
- Loan Types and 2026 Limits: Conventional, FHA, VA and Jumbo — A simple tour of your loan options, with this year's official San Diego County and Orange County limits.
- Down Payment Help: Programs Worth Checking — Where buyers look for down payment and closing cost help in California and San Diego County.
- Property Taxes, Mello-Roos and HOA Dues: Know Your Monthly Number — How California property tax works, what special assessments and HOA dues are, and how to budget them.
- Homeowners Insurance: Get Your Quote Early and Keep It Simple — What a home policy covers, how to shop quotes, and why lining it up early makes closing smooth.
- Inspections and Disclosures: Your Information Advantage — The reports and forms that tell you everything about a home, and how to use them with confidence.
- Writing an Offer That Wins (and Still Protects You) — How to build an offer that stands out through price, terms and timing, with your interests protected.
General information only, not legal, tax or financial advice. Programs, rules and limits change, so confirm details with your lender, escrow officer, attorney or tax professional.