Buying a home in San Diego is exciting, but the final wire you send can feel like a mystery. If you are budgeting only for the down payment, you may be surprised by the additional items due at closing. The good news is you can estimate these costs, learn what is negotiable, and plan ahead so there are no last‑minute surprises. This guide breaks down what San Diego buyers typically pay, how local fees work, and smart ways to reduce your cash to close. Let’s dive in.
Typical closing cost range
In California, including San Diego County, buyer closing costs usually total about 2% to 5% of the purchase price. This estimate does not include your down payment. It includes lender fees, appraisal, inspections, title and escrow, recording, and prepaids like property taxes and homeowners insurance.
Your cash to close can be higher than closing costs alone. Many loans require initial impound deposits for taxes and insurance, and some programs require reserves. Review your Loan Estimate from your lender to see your itemized figures.
Line items you will see
Loan and lender fees
- Origination or lender fee. This covers underwriting and processing. Buyers typically pay it, though seller credits or lender credits can offset it. Some lenders also charge points to lower the rate.
- Discount points. You can pay points up front to reduce your interest rate. This cost is optional and varies based on the pricing you select.
- Credit report and application fees. These are smaller third‑party charges paid by the buyer.
Third‑party services
- Appraisal. Your lender orders an appraisal to confirm value. In San Diego, this often ranges from several hundred dollars to about $800 to $1,200, depending on property type and complexity. The buyer usually pays.
- Inspections. A general home inspection is common, and you might add pest, roof, or sewer scope. Standard inspections often run a few hundred dollars, with specialty inspections extra. Buyers typically pay.
Title and escrow fees
- Escrow fee. The escrow company manages funds and closing. In many San Diego deals, buyers and sellers split escrow fees, but this is negotiable and should be confirmed in the purchase contract.
- Title insurance. The lender’s policy is usually a buyer cost. The owner’s policy is often paid by the seller in many Southern California transactions, yet this can vary by deal. Title premiums follow California rate schedules that depend on price.
Prepaids and impounds
- Property tax prorations and impounds. Taxes are prorated between buyer and seller at closing. Lenders commonly require an initial deposit into an impound account for future tax and insurance payments. In San Diego County, the base property tax is about 1% of assessed value, plus local assessments and possible Mello‑Roos or special taxes. These add to your annual tax and can increase your initial impounds.
- Homeowners insurance. Most lenders require you to pay the first year’s premium at closing. Costs vary by property and coverage.
Local fees and taxes
- Recording fees. The County collects recording charges for documents such as the deed of trust. Buyers typically pay to record the mortgage. Expect a modest amount, usually a few hundred dollars.
- Documentary transfer tax. This is a tax on the transfer of real property. In many California transactions the seller pays, though it can be split or negotiated. Confirm the applicable county or city rate and who is paying in your contract.
HOA and community costs
- HOA transfer and document fees. Condos and planned communities often charge for HOA documents or transfer processing. In Southern California, sellers often cover some HOA document fees, but it is negotiable. Special assessments or capital contributions can apply.
Other possible buyer costs
- Mortgage insurance. If you put less than 20% down on a conventional loan, you may have monthly PMI or an upfront option. FHA loans require upfront and annual mortgage insurance premiums. Upfront amounts can sometimes be financed into the loan.
- Lender‑required reserves. Certain loans require you to hold some months of housing payments in reserve, which impacts cash planning.
San Diego specifics to verify
- Transfer taxes. Confirm current documentary transfer tax and any city‑level taxes with the San Diego County Recorder. Your contract should state who pays.
- Mello‑Roos and special districts. Many newer communities carry special assessments. Review your Preliminary Title Report, tax records, and disclosures so you understand how these affect your impounds and monthly budget.
- HOA timelines and fees. Ask about HOA transfer fees, document packages, and any reserve or capital contribution requirements. These affect both costs and timelines.
- Title and escrow schedules. Title premiums follow California rate tables, while escrow fees vary by company and are often split. Get quotes early.
- Recording fees. Check current County schedules for exact recording charges.
- Assistance programs. The San Diego Housing Commission and CalHFA offer down payment or closing cost assistance for qualified buyers. Rules vary by income, price caps, and buyer status.
Ways to lower cash to close
- Seller concessions. Negotiate a credit for closing costs within your loan program limits. This reduces out‑of‑pocket cash but affects the seller’s net and may impact offer strength.
- Lender credits. Accept a slightly higher interest rate in exchange for a credit that covers part of your costs. This can help with upfront cash, with a long‑term tradeoff in interest.
- Finance allowable fees. Some charges, such as certain upfront mortgage insurance premiums, can be rolled into the loan if your program and appraisal allow.
- Down payment and closing cost assistance. Explore local and state programs that offer grants or low‑interest seconds. Expect eligibility rules and possible repayment or resale conditions.
- Shop third‑party costs. Compare homeowners insurance, and request detailed fee quotes from your lender, title company, and escrow provider.
- Be strategic with inspections. Focus on the most impactful inspections for the property type. Skipping inspections can increase risk, so weigh potential savings against protection.
Sample cost scenarios
Estimates below are for illustration. Your Loan Estimate and final Closing Disclosure will govern your numbers.
Example A: $700,000 purchase, conventional, 20% down
- Lender fees and points: about 0.6% → $4,200
- Appraisal and credit report: $700
- Escrow, recording, and lender’s title: about 0.3% → $2,100
- Prepaids and impounds: about 0.7% → $4,900
- Inspections: $600
- Estimated total buyer closing costs: about 2.4% → $16,500
- Cash to close including down payment: about $173,000
Example B: $700,000 purchase, FHA, 3.5% down
- Lender fees and upfront MIP if not financed: about 1.0% → $7,000
- Appraisal and credit report: $700
- Escrow and lender’s title: about 0.3% → $2,100
- Prepaids and impounds: about 0.9% → $6,300
- Inspections: $600
- Estimated total buyer closing costs: about 2.9% → $16,700
- Cash to close including down payment: about $41,200 if upfront MIP is paid in cash. If financed, cash to close is lower.
Example snapshot table
| Line item |
Typical payer |
Example amount |
| Down payment |
Buyer |
$140,000 |
| Loan origination or points |
Buyer, negotiable |
$4,200 |
| Appraisal |
Buyer |
$700 |
| Escrow fee, buyer share |
Split, negotiable |
$1,050 |
| Lender’s title policy |
Buyer |
$900 |
| Owner’s title policy |
Often seller, negotiable |
$0 |
| Recording fees |
Buyer |
$200 |
| Prepaids and impounds |
Buyer |
$4,900 |
| Inspections |
Buyer |
$600 |
| Estimated buyer closing costs |
Buyer |
about $16,500 |
Next steps
- Ask your lender for a detailed Loan Estimate and review each line item.
- Get title and escrow quotes early, and confirm who pays what in your purchase contract.
- Review property tax records, HOA documents, and disclosures for Mello‑Roos or special assessments.
- Explore assistance options if you want to reduce upfront cash.
If you want a clear closing cost game plan tailored to your price point and neighborhood, connect with the local team that guides San Diego buyers every day. Reach out to Select Living Realty Group for a friendly, detailed walkthrough of your numbers and options.
FAQs
How much are buyer closing costs in San Diego?
- Most buyers pay about 2% to 5% of the purchase price in closing costs, excluding the down payment and any required reserves.
Who pays title and escrow fees in San Diego?
- Many Southern California transactions have sellers pay the owner’s title policy and buyers pay the lender’s policy with escrow fees often split, but all items are negotiable and set by the contract.
Are there transfer taxes in San Diego and who pays?
- Documentary transfer taxes apply at the county and sometimes city level; payment is negotiable and often falls to the seller, so confirm the current rate and contract terms.
Can a seller cover my closing costs?
- Yes, sellers can provide concessions within your loan program limits, but the lender must approve and the credit must be disclosed on your closing documents.
How can I reduce my cash to close?
- Consider seller concessions, lender credits, assistance programs, financing allowable fees, and shopping third‑party providers for savings.
What San Diego taxes or assessments should I watch?
- Review for Mello‑Roos and other special assessments that increase annual property taxes and initial impounds, and check HOA documents for any fees or contributions.
When do I receive accurate closing numbers?
- You receive a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing with final cash‑to‑close details.
