Are you wondering how much cash you really need to close on a home in San Diego? You are not alone. Between lender fees, insurance, and local taxes, closing costs can feel confusing. The good news is you can plan ahead. In this guide, you will learn what San Diego buyers commonly pay, how to estimate your cash to close, and the local checks to run before you tour. Let’s dive in.
What closing costs cover
Closing costs fall into two buckets. Knowing which is which helps you plan your cash to close.
- One-time transaction fees and taxes. These include lender charges, appraisal, title and escrow services, recording fees, transfer taxes, inspections, and HOA-related transfer fees.
- Prepaids and initial escrow deposits. These include your first year of homeowner’s insurance, prorated property taxes, prepaid mortgage interest, and the starter balance for an escrow account if your lender requires one.
In most markets, total buyer closing costs are commonly about 2% to 5% of the purchase price. Because San Diego home prices tend to be higher, that percentage translates into a larger dollar amount. Your lender must provide a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before you sign, so you can review the details in advance.
What buyers usually pay in San Diego
Local custom matters. In San Diego County, many items are negotiable. Here is what buyers commonly cover, plus what to check.
Lender fees
- What they include: origination, underwriting, processing, application, credit report, rate lock, and optional discount points.
- Who pays: buyer.
- Tips: you can shop lenders and compare total fees and rate. Ask for an itemized fee schedule and review your Loan Estimate.
Appraisal and inspections
- Appraisal: most lenders require it. Cost is commonly several hundred dollars.
- Inspections: pest or termite, general home inspection, roof, HVAC, sewer scope, and more depending on the property. These are buyer ordered and buyer paid. Costs vary, often $300 to $1,000+ each.
- Survey: not common for most San Diego homes, though some situations may require one.
Title insurance and escrow services
- Two policies exist: an owner’s title policy and a lender’s policy. In much of California, sellers often pay for the owner’s policy while buyers pay for the lender’s policy. Escrow fees are often split, though practices vary by county and by contract.
- What to do: request a quote from the selected title and escrow company. Title premium rates are regulated in California, but endorsements and escrow fees can differ by company.
Recording and transfer taxes
- Recording fees: the county charges to record your deed and deed of trust. Buyers commonly pay their recording fees, though contracts can change this.
- Documentary transfer tax: California counties collect a transfer tax tied to the sale price. Some cities in the county may add their own tax. Who pays can be the seller, buyer, or split based on the contract and local custom. Confirm current rates with the San Diego County Recorder and the city where the property is located.
Property taxes, Mello-Roos, and proration
- Property taxes: taxes are prorated at closing. You pay the share from the closing date forward.
- Mello-Roos and special assessments: many newer San Diego communities have Community Facilities District assessments that appear on the annual tax bill. These are recurring and can be substantial.
- What to do: review the preliminary title report, seller disclosures, and the parcel’s tax bill. Verify any Mello-Roos or special assessments with the San Diego County Treasurer-Tax Collector.
Homeowner’s insurance and escrow deposits
- Lenders require proof of homeowner’s insurance before funding. Many lenders also require an escrow account for taxes and insurance and will collect an initial cushion at closing, commonly around two months of taxes and insurance.
- Earthquake insurance is separate and optional. Ask your insurance agent for local quotes that reflect wildfire and coastal exposures where relevant.
HOA fees and condo documents
- If the home is in an HOA, expect transfer and document fees. Custom varies on who pays which items. HOA dues are prorated at closing.
- Request the HOA estoppel and financials early. These can reveal any pending special assessments.
Other small fees
- Endorsements on title policies, courier, notary, and wire fees are common.
- Payoff and reconveyance fees for the seller’s loans appear on the settlement but are the seller’s responsibility.
- Some cities require local compliance items or certificates. Confirm any city-specific requirements early.
Who pays what and negotiation points
San Diego customs are helpful guidelines, not hard rules. Your purchase contract controls.
- Sellers often pay: owner’s title insurance policy in many California transactions, real estate commissions, and sometimes part of the transfer tax. This is negotiable.
- Buyers typically pay: lender fees, lender’s title policy, appraisal and inspections, recording fees, escrow fees that are commonly split, HOA transfer fees, insurance, and initial escrow deposits.
You can also ask for seller credits to help with closing costs. Program rules limit how much a seller can contribute.
- Conventional loans: typical limits often start near 3% if your down payment is under 10%, with higher caps, such as 6% to 9%, at larger down payments. Verify with your lender.
- FHA loans: commonly allow up to 6% in seller concessions for eligible items.
- VA loans: allow certain seller-paid costs and concessions within VA rules. Your lender can confirm eligible items.
Market conditions matter. In a strong seller’s market, seller credits are less common. In a balanced or buyer-friendly market, you may negotiate credits that meaningfully reduce your cash to close.
How to estimate your cash to close
You can get a reliable estimate early if you gather the right documents and use a simple formula.
Request these early
- Loan Estimate from your lender after application, including itemized fees and estimated cash to close.
- Purchase Agreement that shows price, who pays which fees, and any seller credits.
- Preliminary Title Report that lists liens, Mello-Roos, and assessments.
- HOA estoppel and financials if applicable, to confirm transfer fees and any special assessments.
- Property tax bill or parcel lookup to confirm annual taxes and assessments.
Use this formula
Cash to close = Down payment + Buyer-paid closing costs + Prepaids and initial escrow deposits + Any HOA transfer or estoppel fees − Seller credits − Lender credits.
See a quick example
- Purchase price: $800,000
- Down payment: 10% = $80,000
- Estimated buyer closing costs: 2.5% of price = $20,000
- Prepaids and initial escrows: $3,000
- Seller credit: $5,000
- Cash to close: $80,000 + $20,000 + $3,000 − $5,000 = $98,000
This example is for illustration only. Actual amounts depend on your loan program, negotiated credits, and the property’s specific fees.
When you get final numbers
- Loan Estimate: your lender must send it within three business days of application.
- Closing Disclosure: your lender must deliver it at least three business days before closing. This is the official breakdown of your final cash to close. If material terms change, the timeline can reset.
San Diego checks to run before you tour
Do a fast pre-check on these items to avoid surprises later.
- Mello-Roos or CFD: ask your agent to screen listings for known CFDs and pull the tax bill.
- Special parcel taxes: confirm with the county tax office for the property’s parcel.
- City transfer taxes: verify whether the City of San Diego or another city adds a transfer tax beyond the county’s standard documentary tax.
- HOA health: request an estoppel and recent financials early to spot upcoming assessments.
- Insurance exposure: get quotes that reflect wildfire zones, coastal wind, and optional earthquake coverage.
- Title and escrow practices: ask which title and escrow companies are commonly used for your submarket and how they split fees.
Tips to reduce surprises
- Get pre-approved and request a complete Loan Estimate with itemized fees.
- Ask your lender for a best estimate of escrow deposits for taxes and insurance, and whether mortgage insurance applies.
- Request a sample Closing Disclosure early so you understand the layout and categories.
- Have the seller provide the preliminary title report and HOA estoppel promptly after opening escrow.
- Compare title and escrow quotes. Title premiums are regulated, but endorsement and escrow fees can vary.
- Consider timing. Buying later in the tax year changes prorations, and prepaid interest depends on your closing date.
Questions to ask your lender
- Can you walk me through the Loan Estimate line by line and flag which fees are negotiable or refundable?
- What will my initial escrow deposit be for taxes and insurance, and will you require mortgage insurance or an escrow cushion?
- What are the seller concession limits for my loan type?
- What is the rate versus points tradeoff and how does it change my cash to close?
- When will I receive my Closing Disclosure, and who prepares the final settlement statement?
Questions to ask your agent
- In today’s San Diego market, is it customary for the seller to pay the owner’s title policy and split escrow fees?
- Does this property have Mello-Roos or special assessments, and can I review the current tax bill and HOA estoppel?
- Are there city or county transfer taxes for this address, and who typically pays them?
- Which title and escrow companies do you recommend, and can we get a preliminary fee estimate?
Next steps
Closing costs do not need to be a mystery. With the right lender estimate, clear title and HOA information, and smart negotiation, you can plan your cash to close with confidence in San Diego. If you want help pricing your total move-in budget or structuring seller credits the right way, our team is ready. Connect with Arturo Soler to schedule a free consultation. Hablamos español.
FAQs
What are typical buyer closing costs in San Diego?
- Buyers commonly plan for 2% to 5% of the purchase price in closing costs, not including the down payment. Your actual amount depends on loan type, price, credits, and local fees.
How do property taxes and Mello-Roos work at closing?
- Taxes are prorated so you pay from the closing date forward. If the home has Mello-Roos or special assessments, those appear on the annual bill and are your responsibility going forward.
Who pays for title insurance in San Diego?
- It is common for the seller to pay the owner’s title policy and for the buyer to pay the lender’s policy, with escrow fees often split. This is custom, not a rule, and can be negotiated.
Can a seller pay my closing costs with FHA or VA financing?
- Yes, seller credits are allowed up to program limits. FHA commonly allows up to 6% in concessions, and VA permits certain seller-paid costs within VA rules. Always verify with your lender.
What is the difference between closing costs and the down payment?
- The down payment reduces your loan amount. Closing costs cover transaction fees, taxes, prepaids, and escrow deposits. Your cash to close includes both, minus any seller or lender credits.
When will I know my final cash to close?
- Your lender must send a Closing Disclosure at least three business days before closing. That document shows your final cash to close and all itemized costs.
