San Diego Buyer Closing Costs Explained

You are not alone if you are wondering how much cash you need to close on a San Diego home beyond your down payment. Closing costs can feel like a black box, and the numbers change from one property to the next. This guide breaks down what buyer closing costs include, how much to budget in San Diego County, and the local factors that move your final cash-to-close. Let’s dive in.

What closing costs include

Closing costs fall into a few buckets. Knowing these helps you spot where your money goes and where you may have room to adjust.

• Loan-related fees: lender processing and underwriting, any origination points, and program-specific charges. Each discount point equals 1% of your loan amount.
• Third-party services: appraisal, credit report, flood certification, and tax service.
• Title and escrow: lender’s title insurance policy, escrow company fees, notary, and courier.
• Prepaid items and reserves: first year of homeowners insurance, prepaid interest, and initial tax impounds that your lender may require.
• Inspections and reports: general home inspection, wood-destroying pest inspection, sewer scope, roof, and other specialty checks.
• HOA and condo items: estoppel or certification fees, transfer fees, and prorated HOA dues.
• Government and recording costs: county recording fees and any documentary transfer tax that applies.
• Loan program fees: FHA upfront mortgage insurance premium if not financed, VA funding fee depending on qualification, and USDA guarantee fees where applicable.

Who pays what in CA

Customs vary by deal and market, but California patterns are fairly consistent:

• Buyers usually pay loan-related costs, lender’s title policy, appraisal and inspections, their share of escrow, and buyer-side recording fees.
• Sellers typically pay real estate commissions and often the owner’s title insurance policy. Local transfer taxes may be a seller responsibility depending on the city or contract.
• Escrow and title fees are often split 50-50. The Residential Purchase Agreement allows you to negotiate these splits.

How much to budget

A practical rule of thumb in San Diego: budget about 2% to 3.5% of the purchase price for closing costs, not counting your down payment. You will see lower totals if lender fees are minimal, you do not pay points, and the seller covers more customary items. Totals rise when you buy points, have higher prepaid taxes and insurance, purchase in an HOA with added fees, or use a loan that carries upfront program charges.

Key cost drivers include your loan program, discount points, HOA or condo requirements, and neighborhood assessments that affect your initial tax impounds.

San Diego specifics

San Diego County has a few local factors that influence your cash-to-close and ongoing housing costs.

Property taxes and impounds

• Under Proposition 13, base property tax is generally around 1.0% of assessed value, plus voter-approved assessments. The effective rate in many areas is commonly around 1.1% or higher.
• Lenders often require an initial deposit into an escrow account for taxes and insurance. The amount depends on price, timing of the closing, and your lender’s rules.
• Review the prior year’s tax bill and ask about any supplemental assessments that could change soon after you buy.

Mello-Roos and CFDs

• Many newer neighborhoods include Community Facilities Districts known as Mello-Roos. Annual special taxes range from a few hundred dollars to several thousand.
• These appear in public tax records and the preliminary title report. They increase your yearly carrying costs and can raise the initial tax impound your lender collects at closing.

HOA and condos

• Condo purchases often include HOA disclosure and transfer fees. Estoppel or certification fees commonly fall in the low hundreds to several hundred dollars, and some associations charge more.
• Lenders review HOA financials. If reserves are low or the association is in litigation, it can add time and complexity to your loan approval.

Termite and inspections

• In Southern California, buyers typically order a wood-destroying pest inspection. Inspections often cost $75 to $200, and treatment can range from a few hundred dollars to several thousand depending on the scope.
• You will also likely order a general home inspection, plus roof or sewer scope as needed.

Flood zones

• Certain coastal, river-adjacent, or low-lying areas may require flood certification and potentially flood insurance. Certification fees are typically modest, while insurance premiums vary with risk.

Real examples

The numbers below are realistic for San Diego, but your lender and title company will provide exact figures for your property and timing.

Example: $600k condo, 20% down

• Typical buyer closing costs: about 2.0% to 3.0% of purchase price, roughly $12,000 to $18,000.
• Midpoint estimate around $14,000:
  • Loan origination and processing: $1,200
  • Appraisal: $650
  • Lender’s title policy: $1,200
  • Escrow fee, buyer share: $900
  • Recording and county fees: $200
  • Prepaid interest, taxes, and insurance impounds: $3,000
  • HOA estoppel and prorated dues: $400
  • Inspections: $800
  • Notary, courier, misc.: $150

Example: $900k single-family, 20% down

• Typical buyer closing costs: about 2.0% to 3.5%, roughly $18,000 to $31,500.
• Midpoint estimate around $24,000:
  • Loan origination and processing: $1,500
  • Appraisal: $750
  • Lender’s title policy: $1,800
  • Escrow fee, buyer share: $1,200
  • Recording and county fees: $300
  • Prepaid interest, taxes, and insurance impounds: $5,000
  • Inspections: $1,200
  • Misc. and reserves: $700

Timing and disclosures

Your lender provides a Loan Estimate within 3 business days of your application. This document sets expectations for your closing costs and monthly payment. At least 3 business days before you sign final documents, you receive a Closing Disclosure with the final accounting. If numbers change materially after that, your closing could be delayed while the disclosure is reissued.

Other timing pieces matter too. Appraisal occurs before loan funding, and a low value may change how much cash you need or trigger a renegotiation. Your title company will issue a preliminary title report early, which can reveal HOA issues or special assessments that affect costs.

Seller contributions are limited by loan program rules. Conventional programs limit concessions based on down payment. FHA and VA have different limits. Your lender will confirm what is allowed for your scenario.

Step-by-step checklist

Use this process to dial in your San Diego cash-to-close with confidence:

1. Ask your lender for a Loan Estimate early. Confirm whether you are paying discount points.
2. Request a sample Closing Disclosure for planning and compare it to your Loan Estimate.
3. Get an itemized estimate from title and escrow for title premiums, escrow fees, and recording costs.
4. Review the seller’s last property tax bill and disclosures. Note the assessed value and any special assessments.
5. Obtain the preliminary title report to identify Mello-Roos or other recorded assessments.
6. If buying a condo, order HOA disclosures and ask about estoppel, transfer, move-in, or move-out fees.
7. Schedule your home inspection and a wood-destroying pest inspection. Gather quotes for any needed treatments.
8. Verify who pays for owner’s title policy, escrow split, and transfer tax in your purchase contract.
9. If using FHA, VA, or USDA, confirm any upfront fees and whether they will be financed or paid at closing.
10. Ask your lender for exact tax and insurance reserve requirements for your expected closing date.

Manage buyer closing costs

A few levers can help you plan or reduce cash to close:

• Negotiate credits within program limits. Seller concessions can offset your costs if allowed by your loan.
• Compare lender fees and decide on discount points. Points raise upfront cost and can lower the rate.
• Understand timing effects. Prepaid interest and initial escrow deposits vary with your close date and tax cycle.
• Verify HOA and special assessments early. These can change both upfront impounds and your monthly budget.

Loan type effects

Different loans change the closing cost picture:

• FHA: includes an upfront mortgage insurance premium in most cases. The charge is commonly around 1.75% of the loan amount unless rules change. You may finance it or pay at closing.
• VA: includes a funding fee that varies by service history and down payment. Many buyers finance this cost into the loan.
• Conventional: no upfront program fee, but lender fees and points vary by lender and rate choice.

Work with local experts

San Diego closings have moving parts, from Mello-Roos to HOA requirements. You benefit when your agent and lender coordinate early on title reports, HOA documents, and lender disclosures, so your estimates stay accurate and your timeline stays on track. With integrated financing support, you can get pre-approved, compare scenarios, and receive timely updates to your Loan Estimate and Closing Disclosure as details evolve.

Ready to price your next move and see a personalized cash-to-close? Connect with the local team that combines high-volume San Diego expertise with integrated lending and responsive service. Schedule your free planning call with Troy Moritz 24/7 Realty.

FAQs

How much should a San Diego buyer budget for closing costs?

• A general rule is 2% to 3.5% of the purchase price, excluding your down payment, with exact amounts set by your lender, property, and timing.

In California, who usually pays which closing costs?

• Buyers typically cover loan-related fees, lender’s title policy, inspections, and their share of escrow and recording; sellers often pay commissions and the owner’s title policy, but splits are negotiable.

When will I see my final closing costs before signing?

• You receive a Loan Estimate within 3 business days of applying and a final Closing Disclosure at least 3 business days before closing.

Do Mello-Roos taxes affect my cash to close?

• Yes, they increase your annual tax bill and can raise the initial tax impounds your lender collects at closing.

Who pays HOA estoppel and termite costs in San Diego?

• It varies by association and negotiation; estoppel fees may be charged to either party, and termite treatments are typically negotiated after inspections.

How do discount points change my cash to close?

• Each point equals 1% of your loan amount, which increases upfront costs while potentially lowering your interest rate and monthly payment.