Understanding Closing Costs in California

Closing costs in California typically range from 2 to 5 percent of the loan amount. Common costs include lender fees, title insurance, escrow fees, prepaid property taxes, and homeowners insurance. As a buyer you will receive a Loan Estimate within three business days of applying for a mortgage that outlines all expected costs. You can sometimes negotiate with the seller to cover a portion of closing costs especially in a slower market. First-time buyers should also ask their lender about no-closing-cost loan options which roll the fees into the interest rate. Planning for these costs from the start prevents unwelcome surprises at the finish line.