Buying in San Diego and wondering what you’ll owe beyond your down payment? Closing costs can feel like a moving target, especially with local customs and line items you may not expect. You want a clear, local number and a plan to keep more cash in your pocket. In this guide, you’ll learn what closing costs typically include, how much to budget in San Diego County, what is negotiable, a realistic example, and proven ways to save. Let’s dive in.
Closing costs at a glance
Closing costs usually fall into two buckets: lender and transaction fees, and third-party or prepaid items like taxes and insurance. Most buyers can plan for about 2% to 5% of the purchase price in closing costs, excluding the down payment. Your exact number depends on your loan type, the timing of your closing, whether you receive any seller credits, and local fees.
Many items are negotiable or can be shifted with credits. Local custom matters in San Diego, so who pays what often comes down to your contract and the specific city within the county.
How much to budget in San Diego
A practical budget for San Diego buyers is 2% to 5% of the purchase price. You’ll land on the lower or higher end based on loan program, whether you buy discount points, the size of your escrow reserves, and HOA or special assessment costs.
Your lender must provide a Loan Estimate within three business days of application, and a final Closing Disclosure at least three business days before you sign. You can review the timing and your rights on the Consumer Financial Protection Bureau’s pages for the Loan Estimate and the Closing Disclosure.
Lender costs you’ll see
These are typical ranges. Your specific quote will vary by lender and property type.
- Loan origination and underwriting: often 0.5% to 1.5% of the loan amount, or a flat fee.
- Discount points: optional. One point equals 1% of the loan amount to reduce your rate.
- Appraisal: about $450 to $900+ for a typical single-family home in San Diego, higher for unique or luxury homes.
- Credit report: usually $25 to $50.
- Lender title insurance policy: a one-time premium based on your loan amount, often in the hundreds to low thousands.
Title and escrow in San Diego
Escrow and title handle the transfer, money, and recording. In many Southern California transactions, escrow fees are often split between buyer and seller by local custom, but your contract can set a different split.
- Escrow fee: your portion commonly falls within about $1,000 to $3,000+ depending on price and provider.
- Title insurance policies: sellers commonly pay the owner’s title policy in many California markets. Buyers typically pay the lender’s title policy. Customs can vary by neighborhood and are negotiable.
- Recording and county charges: smaller fixed fees to record your deed and loan, often tens to a few hundred dollars.
For statewide norms on who pays what, see the California Association of Realtors’ guidance on local customs at the California Association of Realtors. Your escrow holder can itemize exact fees for your address and price.
Prepaids and escrow reserves
Prepaid and reserve items often make up a large share of total closing funds.
- Property tax proration: you pay your share from your closing date to the next due date or reimburse the seller for taxes already paid. California bills taxes in two installments with standard proration conventions.
- Prepaid interest: interest from your funding date to the end of that month.
- Homeowner’s insurance: the first year premium is often paid at or before closing.
- Escrow impounds: many loans require 2 to 6 months of tax and insurance reserves deposited at closing.
- HOA dues: if applicable, you may prepay a portion of monthly dues and see an HOA document or transfer fee.
To confirm tax timing and bills, visit the San Diego County Treasurer-Tax Collector and Assessor via the San Diego County website.
Inspections and due diligence
Plan for inspection costs during escrow. These are usually paid out of pocket as you go.
- General home inspection: typically $300 to $800.
- Pest or wood-destroying organism inspection: about $75 to $200.
- Sewer, roof, pool, or specialty inspections: $150 to $500 each depending on the scope.
- HOA document fees: often $150 to $500+ for the association’s financials and governing documents.
Taxes and assessments to know
San Diego has special assessments in many communities that affect long-term costs.
- Supplemental property tax: after a purchase, you may receive supplemental tax bills based on the new assessed value.
- Mello-Roos and special assessments: common in newer or master-planned areas, these appear as separate line items on tax bills and can be substantial. They are not optional and should be included in your monthly affordability.
- Documentary transfer taxes: the county and some cities impose transfer taxes. Local practice often assigns payment to the seller, but verify for your property and city.
You can confirm current rates and any city-level transfer taxes through the San Diego County site and the City of San Diego or other city finance pages.
Who pays what in practice
Customs vary by region and are always negotiable. In many California markets:
- Owner’s title policy is commonly paid by the seller.
- Lender’s title policy is typically paid by the buyer.
- Escrow fees are often split 50-50, though contracts can assign a different split.
- Transfer tax is often paid by the seller, but confirm the city and current practice before you write your offer.
For broader norms and trends, the California Association of Realtors and the National Association of Realtors provide guidance on local customs and transaction standards.
Ways to save on closing costs
You have options to reduce cash due at closing. Compare the total cost of each approach, not just the upfront savings.
- Ask for seller concessions. You can request a closing cost credit in your offer. Your ability to win credits depends on the market and your loan rules.
- Consider lender credits. Taking a slightly higher rate can generate a credit that offsets closing costs.
- Shop your providers. Compare title and escrow quotes and select reputable inspectors with competitive pricing.
- Evaluate points versus payment. Buying points lowers your rate but raises upfront costs. Decide based on how long you plan to hold the loan.
- Explore first-time buyer aid. Some programs offer closing cost help or grants. Review eligibility early so you can structure your offer accordingly.
Example for an $800,000 purchase
Here is an illustrative breakdown for an $800,000 purchase with 20% down and a $640,000 loan. Your actual figures will vary based on timing, loan terms, and negotiations.
- Typical buyer closing cost range, excluding down payment: about 2% to 4%, or $16,000 to $32,000.
- Loan origination fee: 0.5% example, about $3,200.
- Appraisal: about $550.
- Credit, underwriting, other lender fees: about $400 to $1,000.
- Lender’s title policy: about $1,200, depends on loan amount.
- Buyer portion of escrow and title fees: about $1,500 to $3,000.
- Recording and county charges: about $100 to $300.
- Prepaid interest: about $500 to $2,000 depending on the closing date.
- Homeowner’s insurance first year: about $800 to $2,000 based on coverage.
- Escrow reserves for taxes and insurance: about $2,500 to $6,000 depending on impound setup.
- Inspections: about $600 to $1,200 combined.
- HOA transfer or documents, if applicable: about $150 to $500.
This example shows why prepaids and reserves often make up a large part of what you bring to close.
Your next steps
A simple checklist will help you dial in your exact number and avoid surprises.
- Get preapproved and request a Loan Estimate from your lender within three business days of application per the Consumer Financial Protection Bureau.
- Ask a local title or escrow company for a property-specific estimated closing statement based on your price and loan.
- Review the preliminary title report early to spot easements, liens, Mello-Roos, or special assessments.
- Verify the current tax bill, due dates, and any supplemental assessments with the county at San Diego County.
- Budget for inspections and order any specialty reports your property may need.
- Work with your agent to negotiate who pays which fees and whether to request seller credits.
When you are ready for a property-specific cost estimate and a negotiation plan tailored to your goals, connect with The Sirin Daum Group. Our team will help you compare scenarios, structure credits wisely, and close with confidence.
FAQs
How much should a San Diego buyer save for closing costs?
- Plan for about 2% to 5% of the purchase price, then refine with a lender Loan Estimate and a title escrow quote.
Who typically pays San Diego transfer tax?
- Practices vary by city. Sellers often pay transfer tax, but confirm for the property’s jurisdiction with the county or city finance office.
Who pays for title insurance in San Diego?
- Sellers commonly pay the owner’s policy and buyers pay the lender’s policy in many California markets, but it is negotiable.
Are inspections part of closing costs for buyers?
- Inspections are usually paid out of pocket during escrow and should be included in your total funds to close.
Can buyers roll closing costs into the mortgage?
- Some costs can be financed or covered by lender credits in exchange for a higher interest rate, which increases long-term cost.
