Are you wondering how much cash you really need to close on a home in San Rafael or greater Marin? You are not alone. Closing costs can feel opaque, especially in a high-price market where a small percentage equals a large number. In this guide, you will learn what closing costs include, how much to budget, who typically pays what in California, and practical ways to plan and save. Let’s dive in.

Closing costs vs. down payment

Your down payment is the portion of the purchase price you pay upfront to build equity. Closing costs are separate. They are the fees and prepaid expenses required to finalize your loan and transfer ownership. Both are paid at closing, but they serve different purposes. Knowing the difference helps you budget accurately and avoid last-minute surprises.

How much to budget in Marin

As a rule of thumb, buyers often budget about 2% to 5% of the purchase price for closing costs, not including the down payment. The exact number depends on your loan program, price point, and local fees. In a market like Marin, even a modest percentage can add up quickly, so base your estimate on your actual price range.

To get precise figures, rely on two documents from your lender. Your Loan Estimate outlines projected fees early in the process, and your Closing Disclosure shows the final numbers at least three business days before you sign.

Line items: loan and lender fees

Origination and underwriting

Lenders may charge an origination fee and an underwriting fee to process your loan. Some lenders list these as flat fees, others use a small percentage of the loan amount. These can vary, so compare quotes and ask about lender credits if you want to reduce upfront costs.

Appraisal and credit report

Your lender typically orders an appraisal to confirm the property’s value and a credit report to verify your credit profile. Appraisals usually cost several hundred dollars. These are third-party expenses that the lender passes through to you.

Discount points

Discount points are optional prepaid interest you can buy to lower your rate. One point equals 1% of the loan amount. Whether points make sense depends on market rates and how long you plan to hold the loan. Ask your lender to model break-even timelines.

Mortgage insurance

If your down payment is less than 20% on a conventional loan, you may have private mortgage insurance. Some loans also include an upfront mortgage insurance premium. This is not a universal cost, so check your loan program.

Line items: title, escrow, and recording

Title insurance

Two title policies are common in California. The owner’s policy protects you, and the lender’s policy protects your lender. In many California counties the seller often pays for the owner’s policy and the buyer pays for the lender’s policy, but customs vary by county and are always negotiable. Title premiums are tied to the purchase price according to published rate schedules.

Escrow and settlement services

California uses escrow companies to coordinate funds, paperwork, and closing logistics. The escrow fee may be split between buyer and seller or assigned to one party based on local practice and your contract. Expect additional minor fees for notary, courier, and document handling.

Recording fees

The county charges recording fees to record the deed and the deed of trust. Buyers typically pay for these recordings. The exact amounts are set by the county fee schedule.

Line items: government taxes and assessments

Transfer taxes

Local governments may charge a documentary transfer tax when property changes hands. Who pays can follow local custom or your contract. In many California markets the seller commonly pays, but this is not guaranteed. Confirm what applies in San Rafael and across Marin with your title and escrow team.

Property tax proration

Property taxes are usually prorated between buyer and seller as of the closing date. If the seller has already paid for a period you will occupy, you reimburse them. If a period has not yet been paid, a proration credit or debit will appear on your closing statement.

Special assessments and Mello-Roos

Some properties carry special district assessments or Mello-Roos taxes. These appear on the preliminary title report and the property tax bill. Verify amounts early since they affect both monthly costs and any escrow account deposits.

Line items: prepaid items and escrow impounds

Homeowner’s insurance

Lenders usually require you to prepay the first year of homeowner’s insurance at closing. Obtain quotes early so your estimate is accurate.

Prepaid mortgage interest

You pay interest from your closing date through the end of that month. If you close later in the month, you prepay fewer days of interest. This can slightly reduce cash to close.

Escrow account deposits

If your loan includes an escrow account, your lender may collect several months of property taxes and insurance to seed the account. The number of months varies by lender and timing.

HOA dues and transfer fees

If your property is in an HOA, plan for prorated dues and possible move-in or transfer fees. Review the HOA documents and any estoppel letter for details.

Other costs to expect

• Home inspection, pest, or specialty inspections if needed
• Survey or boundary review if required
• Notary, courier, and wire fees for delivering funds
• HOA document fees depending on local practice and statute

These may be paid outside of closing or appear on your final statement. Track them alongside your closing-cost estimate so your total cash plan remains accurate.

Who pays what in California

Customs vary by county and city, and your contract controls. In many California transactions the seller often pays for the owner’s title policy and the documentary transfer tax where applicable, while the buyer pays the lender’s title policy, loan-related fees, recording charges, and prepaid items. Escrow fees may be split or assigned based on local custom.

Negotiation and loan rules matter. Seller credits toward buyer closing costs are often allowed but limited by program.

• FHA loans: seller concessions are commonly allowed up to 6% of the sale price for eligible costs. Confirm current HUD guidelines with your lender.
• VA loans: concessions have limits, often up to 4% for certain items. Confirm current VA rules with your lender.
• Conventional loans: concession limits depend on your down payment percentage and occupancy. Check current Fannie Mae and Freddie Mac guidance.

Always confirm who pays what on your purchase contract and verify any credits are permitted by your loan program.

How to estimate your cash to close

Use this simple method to avoid surprises.

1. Gather your documents

• Loan Estimate from your lender
• Preliminary title report
• Marin County property tax details for the specific property
• HOA documents and any estoppel letter
• Purchase contract with any negotiated credits
• Seller disclosures and any records showing special assessments

2. Build your estimate

• Start with lender fees, discount points, and third-party costs on your Loan Estimate.
• Ask your title and escrow company for a written quote for title insurance, escrow, and recording fees.
• Add prepaid items: homeowner’s insurance, prepaid interest, prorated property taxes, initial escrow deposits, and HOA prorations or transfer fees.
• Subtract seller credits and any seller-paid items noted in your contract.
• Add your down payment and any inspection fees not already included.

3. Confirm the final figure

• Review your Closing Disclosure at least three business days before signing. Compare it to your Loan Estimate and ask questions about any changes.

Timeline and key milestones

• Loan Estimate: delivered within three business days of loan application.
• Appraisal and underwriting: typically one to four weeks depending on lender and market conditions.
• Closing Disclosure: delivered at least three business days before closing. Material changes can restart the three-day clock.
• Closing day: bring certified funds or wire per escrow instructions. Always confirm wire details directly with your escrow officer to protect against fraud.

Marin and San Rafael local notes

• Transfer taxes and fee-splitting: Local practice can vary by county and city. Your purchase contract and title company will confirm whether the seller or buyer pays specific items.
• Property taxes and assessments: Use the property’s actual tax bill to understand base taxes and any special assessments, including Mello-Roos or other district charges.
• HOA specifics: Review HOA budgets, dues schedules, transfer fees, and any upcoming assessments so you plan both upfront and ongoing costs accurately.

Tips to lower or manage your costs

• Shop multiple lenders and compare Loan Estimates line by line. Ask about lender credits if you prefer lower upfront costs.
• Discuss rate versus points tradeoffs. A slightly higher rate can reduce cash due at closing.
• Negotiate seller credits within your loan’s allowed limits. Structure them early in the offer to align with program rules.
• Confirm whether the seller will pay the owner’s title policy. This can reduce your cash to close.
• Time your closing date strategically. Closing later in the month minimizes prepaid interest.
• Verify all special assessments early. Knowing exact amounts helps you plan escrow deposits and monthly costs.

The bottom line

Closing costs in Marin typically fall in a familiar percentage range, yet local practice, loan rules, and price point make the details unique to your purchase. When you combine a clear estimate from your Loan Estimate with written quotes from title and escrow, you get a reliable cash-to-close plan and confidence heading into closing.

Ready to map out your exact numbers for a San Rafael or Marin purchase? Connect for a personalized walkthrough and local guidance tailored to your property and loan.

Unknown Company can help you compare loan options, estimate your cash to close, and negotiate a smart allocation of fees.

FAQs

Are closing costs separate from the down payment?

• Yes. Closing costs cover fees and prepaid expenses for the transaction, while your down payment goes toward your home’s purchase price and equity.

How much should a San Rafael buyer budget for closing costs?

• A common rule of thumb is 2% to 5% of the purchase price, excluding the down payment. Your Loan Estimate and Closing Disclosure show the exact amounts for your loan and property.

Can a seller pay some of my closing costs in California?

• Often yes. Seller credits are negotiable but limited by your loan program. Ask your lender about the current limits for FHA, VA, or conventional loans.

How are Marin County property taxes handled at closing?

• Taxes are typically prorated between buyer and seller based on the closing date. Your lender may also collect several months of taxes for your escrow account at closing.

What is Mello-Roos and how does it affect closing?

• Mello-Roos is a special tax for certain community facilities districts. It appears on the title report and tax bill and can affect your escrow deposits and monthly payments.

When will I see my final closing costs before signing?

• Your lender must provide a Closing Disclosure at least three business days before closing. Review it carefully and compare it to your Loan Estimate.