Plan on closing costs of roughly 2% to 5% of the purchase price, paid on top of your down payment. On a $900,000 San Diego home, that is about $18,000 to $45,000. The wide spread comes from what your lender charges, whether you buy points, and how much insurance and tax money has to be set aside on day one. Your lender's Loan Estimate is the document that replaces my range with your number. Lenders have to send it within three business days of your loan application, so ask for one before you fall in love with a house. This is general education, not lending or tax advice, so confirm every figure with your lender and escrow officer.
Where the money goes
Closing costs are a stack of smaller charges, and each one has a different owner. Some go to your lender, some to the title and escrow company, some to the county, and some get paid in advance to cover the months after you move in.
| Item | Planning range | Who usually pays in San Diego County |
|---|---|---|
| Loan origination | Often 0.5% to 1% of the loan | Buyer |
| Appraisal | A few hundred dollars, more for larger homes | Buyer |
| Home inspection | A few hundred dollars, more for larger homes | Buyer, usually before closing |
| Lender's title policy | Varies by loan amount | Buyer |
| Owner's title policy | Varies by price | Customarily the seller, but negotiable |
| Escrow fees | Varies by company | Often split, check your contract |
| County transfer tax | $1.10 per $1,000 of price | Customarily the seller, but negotiable |
| Prepaids (insurance, interest, impounds) | Varies | Buyer |
A $900,000 example
Here is the arithmetic for a $900,000 purchase with 20% down. That is a $180,000 down payment and a $720,000 loan. These are illustrations built from the ranges above, not a quote.
Loan origination at 0.5% to 1% of $720,000 comes to $3,600 to $7,200. The county transfer tax at $1.10 per $1,000 works out to $990, and in San Diego County the seller customarily covers it, though your contract decides. Add the appraisal, inspection, your lender's title policy, your share of escrow, and a full set of prepaids, and it is easy to see how a 2% to 5% budget gets used up, especially if you buy points.
If you are putting down 10% instead, the loan is bigger, so the lender-side charges grow while the down payment shrinks. Run both versions with your lender before you pick a price range.
The costs that surprise people
Prepaids catch buyers off guard because they are not fees. They are your own money, set aside early. Expect to fund the first year of homeowners insurance, some prepaid interest, and often a starting balance in an impound account for taxes and insurance. Ask your lender to show these as a separate line so you can see which dollars are fees and which are just early payments.
The other one is the supplemental tax bill. After you buy, the county reassesses the property at your purchase price, and you may receive a separate bill for the difference from the date you took ownership. It usually does not show up at closing, which is exactly why people forget to save for it. The San Diego County Assessor and Treasurer-Tax Collector can tell you how it works for your address.
What you can actually negotiate
Lender fees are often negotiable, and it costs nothing to ask two or three lenders for a Loan Estimate and compare line by line. Seller credits are another tool, and I wrote about the math of using one for a rate buydown in our post on asking the seller for a buydown instead of a price cut. Whether a credit is realistic depends on the property and the week you write the offer, and each loan type caps what a seller can contribute. Your lender will know the limit before you write the offer.
If you want to see how all of this changes your monthly payment, the post on what a $1 million San Diego home really costs per month walks through taxes and insurance, and the buy now or wait calculator lets you test a few scenarios. For the full step-by-step, start with the San Diego buyer guides.
Frequently asked questions
How much are closing costs for buyers in San Diego?
A common planning range is 2% to 5% of the purchase price. On a $900,000 home that is roughly $18,000 to $45,000. Your lender's Loan Estimate gives the real number.
Who pays transfer tax in San Diego County?
The county rate is $1.10 per $1,000 of the price. By local custom the seller usually pays it, but it is negotiable, so check your purchase contract and ask your escrow officer.
Can I ask the seller to pay my closing costs?
You can request a seller credit in your offer. Whether it works depends on the market, the property, and the limits for your loan type, so talk it through with your lender first.
What is a supplemental tax bill?
It is a separate bill from the county after a change of ownership, covering the difference between the old and new assessed value from the date you bought. It generally arrives after closing, so build it into your savings plan.
Your next step
Before you tour another house, get a Loan Estimate and look at the cash-to-close line. Email Celeste or call 619-738-0725 and she will walk the numbers with you.