Who pays closing costs and how much are they?

Q: Who pays closing costs and how much are they?

Closing costs are typically paid by the buyer and usually range from about 2% to 3% of the purchase price. In some cases, buyers may be able to reduce these costs through seller credits, lender credits, or assistance programs depending on how the transaction is structured.

Written by Armando Novelo, NMLS 237243, mortgage loan officer in West Covina, CA with 20+ years helping Southern California homebuyers.

Clear, real answers for California homebuyers

Closing costs are the fees involved in finalizing your home purchase.

Most buyers don’t expect them, and they can catch people off guard if you’re not prepared.

In California, closing costs typically range from about 2% to 3% of the purchase price, but the exact amount depends on your situation and how the deal is structured.

What Do Closing Costs Include?

Closing costs are made up of several different items, including:

Lender fees

Appraisal

Escrow and title fees

Prepaid property taxes

Homeowners insurance

Each of these plays a role in getting your loan approved and your home officially closed.

How Much Are Closing Costs in California?

As a general range, most buyers can expect:

About 2% to 3% of the home price

So for example:

On a $500,000 home → around $10,000 to $15,000

On a $700,000 home → around $14,000 to $21,000

These are estimates, but they give you a realistic idea of what to expect.

Do Closing Costs Come Out of Pocket?

Not always.

Depending on how your offer is structured, some buyers are able to offset part of their closing costs.

This can depend on:

Negotiations with the seller

The type of loan

Market conditions

This is where strategy really matters.

What We See With Buyers in the San Gabriel Valley

In areas like West Covina, Baldwin Park, and Covina, closing costs are one of the biggest surprises for buyers.

Many people focus only on the down payment, but once we go through the full breakdown, they’re able to plan more accurately and avoid surprises.

How to Prepare for Closing Costs

The best way to prepare is to get a full breakdown early in the process.

That way you know:

What to expect

How much you’ll need

What options you have to reduce costs

Having clarity upfront makes the entire process smoother.

If you’re still figuring things out, that’s completely normal. The first step is just understanding what’s possible for you based on your situation.

You can use our contact page to request a no-pressure strategy call with Armando and talk through your options together.

Links

Armando Novelo

NMLS 237243

Super Mortgage Bros

1900 W. Garvey Ave S. #100

West Covina, CA 91790

Phone: (626) 200-1838

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