How much is the average closing cost for a 500k home in San Diego?

Asked by mrmrsdho, 92128 Mon Jul 16, 2012

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Kimberly Dotseth’s answer
Kimberly Dot…, Agent, San Diego, CA
Thu Jul 19, 2012
Mr. and Mrs,
I typically tell my clients to allow at least 1% of the loan value as the "point" that will be paid to the lender, and another 1% of the loan value for other related loan costs. Then I tell them to allow 1% of the sales price for real estate related costs. Loan value and sales price are two different things, but if you want to be conservative, allow 3% of the sales price. No matter who you choose as your agent, make sure they see the "Estimated HUD-1" for you BEFORE you sign your loan documents. I am a former mortgage broker and can really scrutinize those things, helping my buyers discover small junk fees that delicately need to go back to the lender for re-consideration.

The way to get through all these closing costs is to sometimes build into your offer a request for seller assistance. If you need help getting pre-approved from a great, reliable and local lender, please ask me. I have some great references of people who don't let me down. If you need insider information into the San Diego home buying process, please call or email me! I would be happy to help you.

~Kimberly Dotseth
broker/owner
Green Box Homes
info(at)greenboxhomes.com
Search for homes at:
http://greenboxhomesblog.com/property-search/

California DRE #01179760
Phone 858-452-2599
0 votes
Cody Kownacki, Agent, San Diego, CA
Mon Jul 16, 2012
BEST ANSWER
Mrmrsdho,

As with almost anything in real estate, closing costs are negotiable between buyer and seller. It's not uncommon for the seller to pay the majority.

It's difficult to give you a single value as an average. Depending on the method of purchase(cash or finance) and the tax rate/time of year, the total for a $500k house might be between $6,500-$12,000. A mortgage will put you in the higher end of that range with your loan origination charge and fees (~1% purchase price). Property taxes also play a big role at around 1.25%+ in most areas of San Diego, however, you will only be responsible for the remaining period’s tax payment.

Give me a call 858-945-6671 or shoot me an email cody@ascentrealestate.net for an accurate estimate.

Regards,

Cody

Cody Kownacki
Broker Associate Lic. #01884050
Ascent Real Estate, Inc.
cell 858-945-6671
office 619-325-4157
http://www.CodySD.com
Web Reference:  http://www.codysd.com/
0 votes
Randall Yates, Other Pro, Dallas, TX
Thu Sep 12, 2013
Depends on your credit scores, the lower the score the higher closing costs are going to be..
5 votes
, ,
Sat Nov 9, 2013
A lender shouldn't charge you more than $1500. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes
MaryAnn Morr…, Agent, San Diego, CA
Mon Jul 16, 2012
The bulk of a buyers closing costs are lender fees. Ask your lender for a preliminary good faith estimate. As far as purchase contract fees are negotiable.

Typical out of pocket before escrow closes:
Property Inspection $500
Termite Report $125
Possible other inspection reports $400
Appraisal Report :$400

Typical fees through escrow in San Diego
escrow fee about $1,000 - varies by escrow company - you can shop prices
Lender title policy
Property taxes starting at close of escrow - there is chart based on the time of year how months they collect.
Home Owners Insurance 1 year policy
Impound account - will you pay your taxes and insurance monthly. The lender will set up an impound account.
Recording charges
Notary fee
Overnight fee - FED EX

Typical lender fees - they will depend loan type and down payment
Origination charge
Points
Credit report
Tax service
Underwriting fee
mortgage insurance premium

You can see there are a lot of different fees so it is hard to give you good answer. Work out all the numbers before you write an offer. Negotiate fees with the seller or ask for a credit from the seller for closing cost if you are short on funds. Do your home work ahead of time it will make purchasing a home much smoother for you.
0 votes
, ,
Mon Jul 16, 2012
Contrary to the common 3% that is often stated, there really is no "average" in the amount of closing costs. I can provide a borrower with lender fees, appraisal costs, options for paying points or not paying points, prepaids and taxes..but title and escrow are directed per the executed contract. At the time escrow is opened, I contact the escrow company immediately to get an estimated HUD-1 so my clients are working with real figures.

Seller contributions often reduce closing costs. With rates being so low, I have few borrowers who are opting to pay an origination point on transactions. Increasing the rate by only 1/8% will reduce your closing costs dramatically. The best way to really understand the variance in closing costs is to get estimates for the following; No cost, no point, point(s)...evaluate the different in costs, versus the difference in monthly costs...you may be surprised to find that saving the origination point may only cost you $15.00 or so a month. $5000 now, or $15 every month over the life of the loan. Neither is right or wrong...it should just be your choice and a mortgage professional should provide you the knowledge to make an educated decision. Best of luck!
0 votes
Cory La Scala, Agent, San Diego, CA
Mon Jul 16, 2012
All good answers so far, but don't forget, you can ask the seller to help you pay for some of the closing costs. They may or may not, depending on the seller's net proceeds of your offer, and how many other offers they have.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421
0 votes
Derek Rotzin…, , San Diego, CA
Mon Jul 16, 2012
Typically 3% but, like many below have mentioned, can vary depending on the deal. Even is you're using a loan to purchase the property, the lender can adjust your expenses. I always recommend using a Realtor that you trust and has your best interests in mind!
0 votes
Cindy Davis, Agent, San Diego, CA
Mon Jul 16, 2012
If you are buying using a mortgage, your closing costs are typically 2.5-3% of your purchase price. If you are buying without a mortgage, your closing costs go down to about 1% of purchase price.

If you have any other questions, feel free to contact me!
0 votes
Sinead McAll…, Agent, Oceanside, CA
Mon Jul 16, 2012
Hi Mr. and Mrs. Ho,
It depends on if you are the buyer or seller and what is negotiated in the contract. If you give me your specific situation, I do have the escrow experience to send you a very detailed and accurate net sheet.

Thanks!
Sinead McAllister
Broker
McAllister Homes Real Estate
858-205-5215
brokermcallister@gmail.com
http://www.McAllisterHomes.com
0 votes
Chris Gorno, Agent, Carlsbad, CA
Mon Jul 16, 2012
Hello mrmrsdho~

You received very informative answers by Hector and Cody. In addition to their great answers I would add : depending on the type of loan and the down payment, will you have your taxes and insurance impounded and included in your monthly payment? The reason the month you close makes a difference, is that determines where we are in the property tax cyle and how much is due for impounds. Some fees are fixed and others are prorated to the close of escrow date, between buyer and seller. Overall it is good to estimate 3 % of the purchase price just to be safe and not have an surprises. Although on a $500K purchase it is often closer to 2%. Having a great Real Estate Agent and Loan Officer, that will provide you with estimates upfront and walk you through the entire process is crucial. Feel free to reach out to me if you have more questions or want to see how you can get a Good Faith Estimate. Wishing you the best with your home search!

Chris Gorno
DRE#0149985
Windermere Real Estate
(619)788-4345
http://www.ChrisGorno.com
0 votes
Jerry Heard, Agent, San Diego, CA
Mon Jul 16, 2012
The closing costs for a purchase can vary a lot depending on the type of loan that you get and the lender that you use. Other than loan costs you will have title and escrow fees as well as homeowners insurance and property taxes to pay. I generally estimate that the closing costs will be between 2 and 3%..
If you would like to discuss this in more detail please contact me and I can help you determine much more accurately what you costs will be. It may be able to structure the offer to have the seller pay some of the costs.

I am never too busy for your referrals

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes
Bill Hays, Agent, Cardiff, AL
Mon Jul 16, 2012
A) Find an agent you can trust (if you don't already have one).

B) Have them ask this question to an escrow rep they work with so they can give you a printed estimate of what all the costs are specific to your request, property and situation. This is the best way to get the most accurate idea of what closing costs will be. It will not be exact, but pretty close.

Asking that question here, we have no idea of HOA fees, financing fees, prorates, etc. Also, some costs are calculated by the square footage of the home, so more info is needed.

I can get an accurate answer to this question if you want to call/email/text me.

BeachBrookerBill
The Coastal Real Estate Perspective You Can Trust
TALK/TEXT - (760) 525-8698
EMAIL - Bill@coastalhomesofsandiego.com
CA DRE 01775528
0 votes
Hector Gaste…, Agent, Coronado, CA
Mon Jul 16, 2012
Mrmrsdho,

To be on the safe side, I always calculate 3%, in your case about 15k, with lower amounts, the percentage is higher, each transaction is different (title, escrow, recording fees are pretty much standard) and it depends also on the month you fund, on the loan and type of loan as well. Is it a Conventional? FHA? VA? Government loans have funding fees in order to fund the programs, is there an origination fee? the Lender has to eat to, and all the magic happens thanks to the Lender, so lets give them a big THANK YOU!

Congratulations on your purchase!

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
hectorgastelum@yahoo.com
619-954-2225
125*142*10754
efax 619-270-2516
0 votes
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