Californians pay an average of $6,537 in closing costs.
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
In California, closing costs are well above the national average. Expect to cough up between 0.98% and 1.15% of your total home purchase price — though the seller may be willing to sweeten the deal with a concession.
In California, the average home sells for $600,000 to $700,000. If you find a property within that price range, expect to pay between $6,120 and $7,140 — before taxes — in closing costs. These charges cover your inspection, appraisal and origination costs, as well as title insurance and courier fees.
Depending on the type of property and how you’re paying for it, you may also need to pony up for mortgage insurance, flood certification, HOA or condo fees. Some of these are negotiable, but the taxes are set in stone. California is subject to property and transfer taxes, though property taxes have been capped at 1% of the purchase price since 1978.
Our averages are based on sample data. Closing costs can vary based on your lender, the size and type of your loan and even your credit score.
Californians pay an average of $6,537 in closing costs.
California’s closing costs are the sixth highest in the country, lagging only behind DC, New York, Maryland, Delaware and Pennsylvania.
This rank is not surprising, given the expensive real estate and the fact that houses and land lots make up the majority of the market.
Closing costs are split between the buyer and the seller in the Golden State, though the buyer absorbs most of them. Your rates reflect your lender and the market, as well as the type, location and price of the property.
In California, you can pay interest up front at closing in the form of discount points. Many buyers opt into points to score a lower interest rate on their mortgage.
One point equals 1% of the loan amount. So, for a $250,000 loan, you’d pay an $2,500 in points at closing.
The Golden State stands out for its unique settlement process. When you buy or sell a property in California, you’ll need to keep a few rules and guidelines in mind.
You might not ever meet the other party face to face. Buyers and sellers often leave the communication up to their real estate brokers and agents, who ask questions and negotiate on their clients’ behalf.
Once the terms of the sale and escrow are finalized, you get the keys to your new home.
Your broker can be what’s called a dual agent, or — in the case of two agents working for the same broker — a dual-agency partnership.
If you agree, the buyer and seller must consent to the arrangement in writing. You’ll complete a Disclosure Regarding Real Estate Agency Relationships form, which identifies the brokers and agents involved in the real estate transaction.
Under the Community Facilities Act, Mello-Roos taxes are used to fund improvements to local infrastructure. They can be used to build or repair streets, sewers and sanitation systems, pay for police protection and cover the maintenance of parks, schools and other facilities.
Before buying a home, ask whether the property is located in a Mello-Roos Community Facilities District. If it is, ask about the expected special-tax payment due each year, and factor it into your budget.
California is prone to earthquakes. If you have a mortgage, you must buy homeowners insurance — but your policy won’t cover earthquake damage, except in the case of fire. Those policies are sold separately, and they’re optional.
When you buy homeowners insurance, the company must offer to sell you earthquake insurance. The written offer must lay out the limits, deductible and premiums you’d pay. And you have 30 days to accept the offer.
California’s closing costs are among the highest in the country: Expect to pay 0.98% to 1.15% of the sales price. There’s room to negotiate some fees, while others are fixed.
With closing costs so high, it’s worth it to compare mortgage lenders to find the most affordable for your needs.
No. You don’t need to hire a lawyer to represent your interests at closing in California. But purchasing property can be a complex transaction.
Many buyers choose to engage an experienced lawyer to help them through the process.
In 1978, California voters passed Proposition 13. The measure caps property taxes at 1% of a home’s assessed value at the time of purchase. Prior to this, the property tax rate across the state averaged 3% of a home’s market value.
Before you buy a home, your mortgage lender conducts a hard pull of your credit report to review your credit history and ratio.
Your report confirms your creditworthiness and your ability to pay your mortgage, potentially landing you lower rates with solid credit.
Typically, your earnest funds are held in an escrow account managed by the buyer’s real estate agent or title company. At closing, the deposit is either returned to you or deducted from your closing costs.
Choose from several options, but beware of this lender’s fees and poor reviews.
Get a low rate guarantee, but you won’t know if you’re eligible until you apply.
Tap your equity without paying closing costs or fees.
Learn the basic steps for transferring your car registration from another state or previous car.
You can refinance your mortgage as often as it makes sense.
This bill includes personal checks, expanded unemployment benefits, business financing and more.
Mortgage refinance fees can include loan origination fees, prepayment penalties and third-party charges.
Mortgages rates in Virginia bounce above and below the national average.
New Hampshire rates generally stay around the national average. Here’s what you need to know.
New Jersey rates closely mimic the national average. Here’s what you need to know.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.