Closing Costs in Central Valley, CA

Closing Costs in Central Valley, CA

Closing costs in Central Valley, CA information you can use, whether you are a homebuyer or seller, the listed tips below are just right for you.

If you’re a first-time homebuyer, you might be wondering what closing costs are and how much you need to pay upon closing. Simply put, closing costs is the collective term used to refer to all the fees and charges that a homebuyer and a seller are obligated to pay at the closing, or settlement, of a home purchase. Generally speaking, it is the buyer who is responsible for most of the closing costs, but this is not set in stone, and you can negotiate with the seller and ask them to shoulder some or all of the costs.

Closing costs vary from state to state, so if you are planning to purchase a house in the Central Valley, California area, hiring a licensed and experienced real estate professional will help ensure that you are properly guided on achieving the best deal out of your real estate transaction.

Average Closing Costs in California

Average Closing Costs in California

In California, the average closing costs range between 0.98% and 1.15% of your total home purchase price. Considering the average home selling price of $600,000 to $700,000, prepare to pay around $6,120 to $7,140 in closing costs (before taxes). Some of the fees and charges included in your closing costs are inspection, appraisal, and origination costs, as well as title insurance and courier fees.

Some of these fees and charges are negotiable. And while most of these closing costs are the responsibility of the buyer, you may ask the seller to help you pay for some or all of them. One important thing to take note of is that the taxes are set in stone. The Golden State imposes property and transfer taxes, and property taxes are capped at 1% of the purchase price.

Typical Closing Costs for Homebuyers and Sellers in Central Valley, CA

  • Appraisal fee: $200–$600
  • Archive and courier fee: $50–$120
  • Closing attorney: Varies
  • Condo or HOA fees: Prorated at closing (if applicable)
  • Credit report: $25
  • Flood certification: $11
  • Hazard insurance: Varies (if applicable)
  • Homeowners insurance: Varies
  • Mello-Roos CFD taxes: Varies (if applicable)
  • Miscellaneous condo fees: Varies
  • Mortgage insurance: Up to 1% of mortgage amount (if applicable)
  • Mortgage recording or deed of trust: $35
  • Origination fee: $800–$950
  • Points (optional): 1% of the loan amount
  • Property inspection fee: $300–$800
  • Property tax: Prorated at closing
  • Recording fee: $8.50–$10 a page
  • Settlement fee: $400–$700
  • Surveying fee: $500–$900 based on size of land
  • Title insurance: $1,200–$2,800
  • Title search: $500–$1,000

Average Estimates

  • Broker fees: Typically 6% of sales price
  • Condo or HOA fees: Prorated at closing (if applicable)
  • Courier and wire transfer fee: $50–$150
  • Document preparation fee: $150–$250
  • Escrow fees: Varies
  • Home warranty fee: Varies (if applicable)
  • Miscellaneous condo fees: Varies
  • Mortgage payoff: Subject to loan balance
  • Own attorney: Varies
  • Property tax: Prorated at closing (if applicable)
  • Recording fees: $125
  • Transfer tax: $1.10 per $1,000 of purchase price

Seller’s Closing Costs and Their Average Estimates

Tips for Homebuyers: How You Can Lower Your Closing Costs

Looking at the list of closing costs for buyers in Central Valley, CA can be quite overwhelming, especially if you’re a first-time homebuyer, but remember that these are not set in stone. There are a few things that you can do to lower the fees and charges in your list. Here are some helpful tips on how to reduce your closing costs:

1. Ask the Seller to Help You With Your Closing Costs

Although it is the buyer who will be shouldering most of the closing costs, it is common practice for sellers to share in the costs that are usually charged to the buyer. Try asking your seller if they are willing to help you with some of the buyer’s closings costs and, if they agree to your request, this will be shown on the loan estimate form as seller credits.

2. Get Loan Estimate Forms from Different Lenders

Although lenders are required to give you a Loan Estimate Form within three days after you have completed your mortgage application, you can request for this so you can get it sooner. A Loan Estimate Form will give you an itemized list of all your closing costs per lender. By requesting this form from several different lenders, you are able to compare and see which one can offer you the best deal.

3. Bargain for Lower Lender Fees

You can negotiate with lenders to waive their application and processing fees. Most lenders may not be willing to lower their origination fees, but it will be good to know the average rate while you are considering your options, which is 0.5% to 1% of the loan amount. So, if you are seeing rates above 1%, shop around for lower rates.

4. Shop Around for Vendors with Lower Rates

Lenders would usually list their recommended vendors on your Loan Estimate Form, but that does not mean that your options are limited to their list. You can ask the lenders for other referrals, or you can also do your own research. By doing this extra task, you can save hundreds of dollars on your closing costs.

5. Inquire About Discount Points and Rebates

Discount points and lender credits allow homebuyers to make tradeoffs in how their closing costs and mortgage will be paid. With points, you are granted a lower interest rate in exchange for paying for an upfront fee. Conversely, lender credits lower your closing costs in exchange for a higher interest rate. This is a preferrable option if you have a limited budget and are willing to shoulder the higher interest rate. On the other hand, discount points are more beneficial in the long-term.

6. Set Your Closing at Month End

This is the easiest way to lower your closing costs, reducing your cash outlay by simply scheduling your closing or settlement date at the end of the month. Since your first mortgage payment is due on the first day of the succeeding month, closing at the end of the month would result to the least number of days to which the per diem interest is applied.

Closing Costs in Central Valley infographic

If you are in the market to purchase a home in the Central Valley, CA area, let me show you all your best options in this location. Feel free to give me a call at 209-681-6392 or send me an email at [email protected] to schedule an appointment.

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