Trulia San D…, Home Buyer in San Diego, CA

What do closing costs include?

Asked by Trulia San Diego, San Diego, CA Thu Dec 13, 2012

Does it come out of the sale price or is it in addition to the sale price?

Help the community by answering this question:



Closing costs are IN ADDITION TO purchase price. Standard closing costs include:

Lender fees:
* Loan origination points – depends on your lender and type of loan
* Pepaid interest – depends on which day of the month you close
* Property tax impounds – depends on the type of loan and when in the year you close
* Insurance impounds – plan on 6 months of insurance, if required
* Processing/Underwriting fees – depends on your lender and type of loan
* Document prep fees – approximately $150.00
* Appraisal fees – approximately $550.00
* Funding fees – depends on your lender and type of loan
* Tax service, flood cert, etc. – approximately $150.00

Title/Escrow fees:
* Escrow fee – depends on purchase price (in some parts of California, a separate title company is used in addition to a closing/escrow company – fees vary)
* Owner’s title policy – depends on purchase price
* Lender’s title policy – depends on loan amount
* Doc prep, notary, recoding, courier, etc. – approximately $350.00

Other fees:
* Prorated property taxes – depends on the type of loan and when in the year you close
* Homeowner’s dues (if applicable) – varies depending on the development
* County Transfer Tax (the base rate in California is $1.25/$1000 purchase price)
* City transfer tax (normally split 50/50 with the seller if applicable)
* HOA transfer fee – varies depending on the development
* Annual homeowner’s insurance policy (if applicable) – depends on the type of home being purchased
* Inspections – norms vary from county to county

Who pays what differs from county-to-county across California. Additionally, it’s not uncommon to see some kind of contribution from the seller to the buyer for closing costs.
0 votes Thank Flag Link Fri Dec 14, 2012
Normally closing costs in the buyer'side will included origination fee, lenders fee, credit report cost, discount points, escrow fees, title insurance fees, title search, flood insurance, HOA insurance, property taxes, prepaid interest, courier and wires fees.

It is a good idea to ask your mortgage broker to provide with a copy of a prelimary HUD before you see all these charges.

Best of Luck,

Maria Cipollone

Century 21 Tenace
1 vote Thank Flag Link Fri Dec 14, 2012
It is in addition to the sales price. Are you the buyer or the seller??? Closing cost and pre-paid expenses depend on which side of the transaction you are on.
0 votes Thank Flag Link Fri Dec 14, 2012
Closing costs are fees above the cost of a home purchase. They are the fees involved for obtaining a mortgage. escrow services, title fees, transfer taxes and fees, hoa transfer fees, etc.

Closing costs are different for buyer and seller. Sellers typically pay both Realtors in the transaction, transfer fees, half of escrow fees, and title fees.

Buyers typically pay for all their lender fees, title fees on their loan, half of escrow, property taxes, and so on.

Fees usually add up to about 2.5% of purchase price for buyers.
0 votes Thank Flag Link Fri Dec 14, 2012
In addition to the sale price. How closing costs are split depends on what customary practices are in a given county/area, although those can be negotiated so that buyer or seller pay non-customary charges.

Teresa has done a good job of listing fees, and since she is in San Diego I will assume her allocations are as customary in San Diego.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Fri Dec 14, 2012
Closing costs are in addition to the purchase price. Some sellers are willing to pay some or all of a buyer's closing costs as an incentive, especially if the property has been on the market a while.

A buyer's closing costs and pre-paid expenses include pro-rated property taxes, homeowner's insurance, escrow and title fees, home inspection and appraisal, to name a few. Cost is probably around $3800 on a $500k cash purchase. If a loan is involved, add the loan fees quoted by your loan officer. Add your down payment, for total cash required to close.

A seller's closing costs include pro-rated property taxes, owner's title policy, escrow fee, home warranty, document transfer fee, and real estate commission, to name a few. Cost is probably around $39k on a $500k sale.

Tera George, Broker

Coastal Realty
(760) 931-0345
0 votes Thank Flag Link Thu Dec 13, 2012
Closing costs are typically in addition to your offer price, although if you are a buyer you can write "seller pays" into your contract. Closing costs vary based on if you are the buyer or the seller, the loan conditions, and you have recurring and non-recurring costs.

Some of the typical costs are: Escrow fees, title, taxes, broker fees. Typically seller closing costs range from 6-10% of the sales price while the buyers closing costs range from 1-3%.

Let me know if I can help you in any way!
Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)
Pacific Sotheby’s International Realty
Call or Text: 760-757-3468
CA DRE License # 01341483
0 votes Thank Flag Link Thu Dec 13, 2012
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