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What are closing costs when buying a home in San Diego?
Closing costs are fees due at the end of a real estate transaction, typically totaling 2 to 5 percent of the purchase price. In San Diego, these costs cover loan fees, title and escrow services, taxes, and insurance.

What Exactly Are Closing Costs?

Closing costs are a mix of lender, title, and third-party fees due when your home purchase is finalized. In San Diego, these usually range between 2 to 5 percent of your home’s purchase price. So, on an $850,000 home, you might expect closing costs between $17,000 and $42,500.

These costs are separate from your down payment and can’t be rolled into the loan unless otherwise specified. Understanding them ahead of time helps prevent last-minute surprises and ensures you budget correctly.

Typical Buyer Closing Costs in San Diego

Here’s a breakdown of common closing costs buyers face in San Diego:

1. Loan Origination Fees

  • Charged by your lender for processing your mortgage application 
  • Typically 0.5% to 1% of the loan amount 

2. Appraisal Fee

  • Required by your lender to confirm the property’s value 
  • Average cost in San Diego: $500–$800 

3. Credit Report Fee

  • Covers the cost of pulling your credit history 
  • Usually $30–$50 

4. Title Insurance and Title Search

  • Protects you and the lender from claims against the property 
  • Paid through a one-time premium, often based on sale price 

5. Escrow Fees

  • Charged by the escrow company for managing the transaction 
  • Typically split 50/50 between buyer and seller 

6. Homeowners Insurance

  • Your lender will require proof of insurance before closing 
  • Expect to prepay a full year at closing 

7. Property Taxes and Prepaid Items

  • Buyers often reimburse sellers for property taxes already paid 
  • Includes prepaid interest or homeowners association fees 

8. Recording Fees

  • Paid to the county to record the deed and mortgage documents 

Are Closing Costs Negotiable?

Some fees may be negotiable. You can:

  • Ask the seller to cover some of your costs (common in slower markets) 
  • Shop lenders to compare origination or underwriting fees 
  • Use closing cost credits offered by new construction builders or agents like Schwarz Real Estate Group 

If you’re a first-time buyer or using an FHA or VA loan, there may be restrictions or opportunities to reduce costs. Always ask your lender and agent what’s negotiable.

Can You Roll Closing Costs Into Your Loan?

Sometimes. Conventional and FHA loans may allow you to finance certain fees, but this increases your monthly payment and long-term interest.

VA loans, on the other hand, often allow sellers to cover all closing costs, making them more affordable for eligible buyers.

What About Closing Cost Assistance?

San Diego County offers some down payment and closing cost assistance programs for qualified buyers. These include:

  • CalHFA MyHome Assistance Program 
  • San Diego Housing Commission grants 
  • Employer homebuyer benefit programs 

Your eligibility may depend on income, credit score, or whether it’s your first home. Schwarz Real Estate Group can help connect you to a vetted lender who knows how to navigate these programs.

Final Thoughts

Closing costs are a critical part of budgeting when buying a home in San Diego. While they may seem overwhelming, understanding what to expect and where you can save gives you more confidence in the process.

At Schwarz Real Estate Group, we walk our buyers through every line of the closing disclosure, so you’re never caught off guard. From finding cost-saving opportunities to helping you navigate local grants, we’re here to support you from offer to close.