Closing Costs in San Diego: What Buyers Should Expect

You budgeted for your down payment, but what about everything else due at the closing table? In San Diego, the add-ons can surprise first-time and seasoned buyers alike. You want a clear, local picture before you write an offer so you can move forward with confidence. In this guide, you’ll learn what closing costs include, what’s typical in San Diego, and smart ways to keep them in check. Let’s dive in.

What closing costs cover

Closing costs are the fees and prepaid items you pay at closing, separate from your down payment. In San Diego, they usually include lender charges, third-party inspections and reports, title and escrow services, county recording, and prepaid property taxes and insurance. If the home has an HOA or sits in a Community Facilities District, expect related fees or assessments.

Many items are negotiable or can be split with the seller. The purchase contract and local custom guide who pays what, so always confirm in writing during negotiations.

How much to expect in San Diego

A practical rule of thumb is about 2% to 5% of the purchase price in total closing costs. Your position within that range depends on your loan program, whether you pay discount points, and local items like HOA or special assessments.

For context, if you buy at $700,000:

• 2% is $14,000
• 4% is $28,000

That total often includes lender, title, and escrow fees, plus prepaids like insurance, interest, and a cushion for property tax and insurance escrow. Third-party inspections and the appraisal add a few hundred to a few thousand dollars.

What moves your number up or down

• Loan structure and points. Paying discount points raises upfront costs but can lower your rate.
• Property specifics. HOAs and newer communities with Mello-Roos or CFD assessments affect your budget and reserves.
• Timing. Closing late in the month can reduce prepaid interest.
• Negotiations. Seller credits can offset portions of your costs.

Lender fees to plan for

Your lender will provide a Loan Estimate within three business days of application. Compare at least two or three lenders and look at the total costs and APR, not just the rate. Common items include:

• Origination or processing fee
• Underwriting, application, and credit report fees
• Discount points if you choose to buy down the rate
• Mortgage insurance charges if your program requires it
• Program-specific fees like a VA funding fee

Ask each lender for an itemized breakdown and make sure the figures align with your goals and timeline.

Inspections and your appraisal

Third-party inspections protect your investment and can surface negotiation points.

Typical ranges:

• General home inspection: about $300 to $800+
• Pest or termite inspection: about $75 to $300+ (very common in San Diego)
• Appraisal: about $450 to $900+

You may also order roof, sewer, pool, foundation, or HVAC inspections depending on the property. Your lender orders the appraisal to support the loan.

Title, escrow, and recording

Title and escrow companies handle funds, documents, and ownership transfer. Expect:

• Title search and lender’s title insurance policy. Lenders require this. An owner’s title policy is optional and can be paid by buyer or seller depending on your agreement.
• Escrow fee for managing the transaction. This is often split but is negotiable.
• County recording and notary fees for your deed and mortgage documents.

Ask your escrow officer for a detailed estimate early. Fees vary by company and sale price, so it pays to compare.

Taxes and San Diego assessments

Local taxes and assessments can be the X-factor in San Diego budgets. Here is what to look for:

• Transfer taxes. Documentary transfer taxes may apply at the county or city level. Who pays is set by local ordinance and your contract, so confirm with your escrow officer and the local city or county offices.
• Property tax proration. You typically reimburse the seller for any prepaid property taxes for the period you will own the home.
• Mello-Roos or Community Facilities District (CFD) assessments. Many newer San Diego communities carry annual CFD charges that appear on tax bills. These affect ongoing costs more than a one-time closing fee, but they must be factored into affordability. They are disclosed in the preliminary title report and seller documents.

Prepaids and escrow reserves

Lenders collect certain items upfront so your first months as an owner go smoothly:

• Prepaid homeowner’s insurance. Often the first year’s premium, commonly about $600 to $2,000 depending on coverage and property.
• Prepaid interest. Covers the period from funding to your first payment date.
• Escrow reserves. A cushion for future property taxes and insurance, often a few months of each.

Condos, townhomes, and HOA costs

If the home is in an HOA or a condo association, expect:

• HOA document and transfer fees
• Possible move-in or capital contribution fees if required by the community
• Confirmation of any special assessments in the HOA paperwork

California law requires specific disclosures for common interest developments. Review the HOA package closely with your agent and escrow officer.

Timeline and key documents

Stay ahead by knowing what arrives when:

• Loan Estimate. Your lender must deliver this within three business days of application. It shows your projected loan terms and closing costs.
• Closing Disclosure. You receive this at least three business days before closing. Compare it line by line with your Loan Estimate and ask questions about any changes.
• Preliminary Title Report or ALTA Commitment. Review for liens, easements, and special assessments like Mello-Roos.
• HOA documents and estoppel. These confirm fees, rules, and any pending assessments.

Escrow periods in California often run 30 to 45 days, but your contract may set a shorter or longer schedule.

How to estimate your costs now

Use this quick plan to build a reliable budget:

1. Request Loan Estimates from two or three lenders. Compare total costs, rate, and APR.
2. Ask your escrow or title officer for an itemized estimate of title, escrow, recording, and prorations.
3. Add inspections and the appraisal. Use the ranges above based on the property type and condition.
4. Include prepaids and reserves. Plan for the first-year insurance premium, prepaid interest, and several months of tax and insurance reserves.
5. Check for HOA and CFD items. Review the preliminary title and HOA documents for transfer fees and any special assessments.
6. Revisit before closing. Compare your final Closing Disclosure with your original estimates and flag any differences.

Ways to lower your closing costs

• Shop lenders. Compare total costs and APR, not just rate.
• Ask for seller credits. You can negotiate a credit that applies to your closing costs.
• Compare title and escrow providers. Fees vary by company and can be negotiated.
• Be strategic with points. Only pay discount points if the breakeven works for your time horizon.
• Review optional items. Owner’s title insurance and home warranties are optional. Understand the protection they offer before deciding.

What to bring and how to pay

• Earnest money deposit. Paid after your offer is accepted and held in escrow.
• Closing funds. Use a bank wire or cashier’s check as directed by escrow. Always confirm wire instructions directly with your escrow officer by phone to avoid scams.
• Government-issued ID. Bring valid identification for signing and notarization.

Common mistakes to avoid

• Waiting to compare lenders. Small fee differences and points can add up.
• Skimming the Closing Disclosure. Compare it carefully with your Loan Estimate.
• Overlooking Mello-Roos and HOA assessments. These affect your monthly costs and reserves.
• Underestimating prepaids. Insurance, interest, and tax reserves are real line items.
• Ignoring transfer taxes. Confirm early who pays and how much based on local rules and your contract.

Ready to buy with clarity

When you understand closing costs early, you write stronger offers and move through escrow with confidence. If you want a precise, property-specific estimate and help coordinating lenders, title, and escrow, we are here to guide you from first look to final keys. Connect with Unknown Company for a tailored closing-cost review and a clear plan for your San Diego purchase.

FAQs

What are closing costs for San Diego homebuyers?

• Closing costs are fees and prepaids due at closing, typically about 2% to 5% of the purchase price, separate from your down payment.

How do I estimate my San Diego closing costs?

• Request a Loan Estimate from your lender and an itemized title and escrow estimate, then add inspections, the appraisal, prepaids, and any HOA or CFD items.

Who pays transfer taxes and escrow fees in San Diego?

• It depends on local rules and your purchase contract. Many fees are negotiable, so confirm the split with your escrow officer and agent.

What is Mello-Roos and how does it affect me?

• Mello-Roos or CFD assessments are annual charges in some communities that appear on tax bills. They affect ongoing affordability more than one-time closing costs.

What prepaid items should I plan for at closing?

• Expect the first year of homeowner’s insurance, prepaid mortgage interest, and several months of property tax and insurance reserves if your lender requires an escrow account.

When will I see my final closing figures?

• Your lender must provide the Closing Disclosure at least three business days before closing. Review it line by line and ask about any changes from your Loan Estimate.