Buyer Resources

Closing Costs

A clear breakdown of what buyers pay at closing in California — so there are no surprises.

What to Expect

The Full Picture on
Closing Costs

In California, buyers typically pay 1–3% of the purchase price in closing costs, in addition to their down payment. On a $750,000 home, that's roughly $7,500–$22,500. Your lender is required to give you a Loan Estimate within 3 business days of application — review it carefully.

Three days before closing, you'll receive a Closing Disclosure with the final, locked numbers. Compare it to your Loan Estimate and flag any unexpected differences with your agent or lender immediately.

Buyer Closing Cost Breakdown

Cost ItemTypical AmountNotes

Loan Origination Fee0–1% of loan amountCharged by your lender to process the loan. Can sometimes be negotiated or offset by a slightly higher rate.

Appraisal Fee$500–$800Required by your lender to confirm the home's market value supports the loan amount.

Home Inspection$350–$600Strongly recommended even when not required. Additional inspections (pool, termite, sewer) are extra.

Title Insurance — Lender's Policy$500–$1,500Protects your lender against title defects. Required for all financed purchases.

Title Insurance — Owner's Policy$500–$1,500Protects you against title claims. In Riverside County, this is typically a buyer expense.

Escrow Fee$1,500–$3,000Split between buyer and seller. Escrow manages the transaction, holds funds, and coordinates closing.

Recording Fees$100–$250County fee to record the deed and deed of trust in public records.

Prepaid InterestVariesInterest on your loan from the closing date to the end of that month. Closing late in the month minimizes this.

Homeowner's Insurance (Prepaid)$800–$2,500/yrYour lender requires proof of insurance before closing. First year is typically paid upfront.

Property Tax ProrationVariesYou reimburse the seller for any property taxes they've prepaid beyond the closing date.

HOA Transfer Fee$200–$600If the property is in an HOA, a transfer fee is charged to set up your account. Some HOAs also require reserves deposits.

Can I Reduce Closing Costs?

Yes — a few ways. You can ask the seller to contribute toward closing costs (seller concessions), typically up to 3% of the purchase price on a conventional loan. You can also shop lenders to compare origination fees and ask about lender credits in exchange for a slightly higher rate. Some first-time buyer programs also cover a portion of closing costs.

Ahu's team will advise on whether requesting seller concessions makes sense in your specific offer situation, and our preferred lender Gary Kawano can walk you through loan options that minimize your out-of-pocket costs at closing.

Talk to Our Preferred Lender ← Buyers Guide

Get Pre-Approved

Know Your Numbers Before You Search

Gary Kawano at Success Lending can provide a clear picture of your loan options, rate, and estimated closing costs — at no obligation.

Meet Our Preferred Lender Talk to Ahu

Related Guides

Closing Costs

The Full Picture onClosing Costs

Buyer Closing Cost Breakdown

Know Your Numbers Before You Search

The Full Picture on
Closing Costs