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Can Someone tell me the approximate closing cost for a house in California priced at $970,000?

  • October 10 2011 - San Mateo
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Answers (11)

Best Answer

Here in the Bay Area, I usually tell buyers to figure 1.5% of the purchase price. The truth is, it really depends on the type of financing you'll be using. Different lenders have different origination and other fees. Title insurance varies based on purchase price. You've got to pay for inspections ($1000 to $1500), first year of home owners insurance, transfer fees, supplemental taxes.... etc. 1.5% will almost always cover it unless the transaction is structured in an irregular way.

One thing I definitely recommend..... use either a lender you already have a relationship with, or a local lender.

Hope this helps:)

David
SanMateoLiving
  • October 10 2011
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Profile picture for sryan1980
3% of the purchase price is a general rule that many mortgage reps stand by. The type of home loan in questions also plays a big role. Government-backed loans have higher closing costs in most cases.
  • December 03 2011
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Profile picture for Sackin Team
Hi Sareban,
From a general stand point, we usually quote about 2% of the sales price. The specific answer to your question depends on what part of the state you are moving to. Here along the coast of Orange County, and our neighboring cities, closing costs are broken down into two types: recurring and non recurring. Recurring costs are costs of home ownership such as property taxes and loan payments. These are generally prorated based on your closing date. For example, you could pay as little as one month or as much as 5 months of property taxes through escrow. Likewise, you might pay a few days of advance mortgage interest or almost a month. When perspective buyers inquire about closing costs, they usually want the most data on the non recurring or one time fees. These are broken down  into four main categories: lender, escrow, title, and inspections.  Today's lender generally should only charge you a modest processing fee and a few small misc fees that should be about no more than $1,500; which includes your appraisal. Next the escrow fees are generally based on purchase price (2 dollars per thousand) plus some generic fees. Putting you at about $2,500. Title insurance for the buyer is based on your loan amount.  Assuming about 70% loan value ($679,000), your base fee would be $835. Lastly, a general home inspection will run between $400 and $600 depending on the size of the home, additional inspections will cost more.  Please note that the higher priced the home is, the smaller the percentage for closing cost. In closing, the best thing you can do is chat with a local professional Realtor and have them draft an"estimated Buyer's cost sheet".
  • October 13 2011
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Saraban,

I think you are inquiring about your total Settlement Costs. If so, I'll agree with Linda. About 3% of your purchase price. As far as David's link on escrow and title fees with this one you don't have to submit any information.
http://www.firstamericantitle.com/fee_schedules

Happy funding, Rudi
  • October 12 2011
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Profile picture for SteadyState
Wow - five agents answered and each answer was different. So either the questions needs additional details before it can be answered or most agents have the incorrect (there should  be at most one right answer).
  • October 10 2011
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Profile picture for Sareban
Thank you all for your help.  
  • October 10 2011
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Just found a handy closing cost calculator of a local title companies website. Thought you might find it useful. I suggest using the numbers you come up with as a ballpark figure, not an absolute number.

https://rates.gottitle.com/tpe/forms/Criteria.aspx?Metro=NCA
  • October 10 2011
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It is 3% of the purchase price.
  • October 10 2011
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Sarban

You do not tell us what your down payment will be.  Also note that depending on the down payment, you will either be in what they term Jumbo or High Conforming balance.   Fannie and Freddie recently lowered their limits for High conforming balance loans.

You lender also prices costs with both the lowest rates and fees, in addition to the highest rate with lowest fees...this is a new regulatory requirement.

Worst case, a good rule of thumb is 2-3 per cent of loan amount.

Good Luck.
  • October 10 2011
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Closing costs also depends on your loan amount. Typically, 1% of your your loan amount, $500 for appriasal fee, underwriting fee , credit fee, escrow fee, prepaids on interest & Taxes. Two percent of the loan amount is a good estimate/approximate of closing costs.
  • October 10 2011
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I always tell my buyers to estimate 2% of the purchase price.  This will include prepaid interest, insurance, property taxes, etc.

Your lender is required to give you a good faith estimate - he/she will work with escrow company to give you "true" estimate of costs.  Also, if you buy down the interest rate on your loan, etc. - your closing costs will rise. 
  • October 10 2011
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