Are closing costs in San Mateo catching you by surprise? You’re not alone. In a high-price market, even small percentages add up fast, and it’s easy to miss items that affect your cash to close. This guide breaks down what you’ll pay, how each line item is calculated, what’s negotiable, and the San Mateo specifics to check before you wire a single dollar. Let’s dive in.
How much you’ll pay
Most buyers should plan for about 2 percent to 5 percent of the purchase price in closing costs, not including your down payment. In San Mateo’s price range, that translates into meaningful dollar amounts, so getting precise local quotes early is smart.
Quick budget examples
- $1,000,000 purchase price → approximately $20,000 to $50,000 in closing costs
- $1,800,000 purchase price → approximately $36,000 to $90,000
- $2,500,000 purchase price → approximately $50,000 to $125,000
Your number will vary based on your loan program, whether you pay points, impounds for taxes and insurance, HOA prorations, and any seller credits you negotiate.
Line by line costs
Below are the common fees you’ll see on your Loan Estimate and Closing Disclosure, with typical ranges and how they’re calculated.
Loan charges
- Origination, processing, underwriting. Charged by your lender, often 0.25 percent to 1.0 percent of the loan amount combined. Some lenders bundle these into “points.”
- Discount points. Optional. Each point equals 1 percent of your loan amount paid upfront to lower your interest rate.
- Application fees. Small fixed items like a credit report or flood certification. The appraisal is the big one here and often runs $600 to $1,500 in the Bay Area depending on property type and complexity.
- Upfront mortgage insurance. Required for certain programs, such as FHA. Conventional loans may include your first month of mortgage insurance if your down payment is below the program threshold.
Inspections and reports
- General home inspection. Typically $300 to $800.
- Termite or pest inspection. Often $75 to $300.
- Specialized inspections. Roof, chimney, sewer, septic, or foundation as needed. Fees vary and are paid directly by you.
Title and escrow
California is an escrow-centric state, so escrow and title professionals coordinate your closing.
- Escrow fee. Charged by the escrow company to manage settlement and funds. In many transactions the buyer and seller split this, though it’s negotiable. A single-party escrow fee on a $1 million deal can range from the low hundreds to the low thousands depending on the company and fee schedule.
- Title insurance. Two policies are typical:
- Lender’s policy is required if you finance. Premiums follow state-regulated rate tables and scale with price. For high-value Bay Area homes, this can be several thousand dollars.
- Owner’s policy protects your ownership. It’s optional but commonly purchased and is often negotiable as to who pays.
- Recording fees. County charges to record the deed and mortgage, usually tens to a few hundred dollars.
- Notary and courier. Small fixed amounts.
Taxes and assessments
- Transfer tax. Rates are set by the county and sometimes the city. Who pays can be negotiated in California. To estimate, multiply the purchase price by the jurisdiction’s rate.
- Property tax and prorations. California’s base rate is about 1 percent of assessed value under Prop 13, plus local voter-approved additions. When you buy, the property is reassessed to market value, and you typically reimburse the seller for the period after closing. Most lenders require an impound account and collect an initial cushion, commonly about 2 months of taxes and insurance, at closing.
- Mello-Roos and parcel taxes. Some San Mateo neighborhoods include Community Facilities District assessments or parcel taxes, often tied to schools and infrastructure. These appear in the preliminary title report and tax records and are ongoing annual charges.
Insurance and prepaids
- Homeowners insurance. First year’s premium is usually paid before or at closing. Amount depends on the property and coverage.
- Prepaid interest. Mortgage interest from your closing date to the first payment, calculated per day.
- Initial impounds. Lenders typically collect several months of taxes and insurance to seed your escrow account.
HOA and misc fees
- HOA items. If applicable, you may reimburse the seller for prepaid dues, and there may be transfer or application fees per the HOA documents.
- Other small items. Wire fees, overnight mail, recording or reconveyance charges, and any agreed pest-clearance items.
What’s negotiable
Several items can be shifted in your favor with the right terms and timing.
- Seller credits. You can request a credit toward closing costs in the contract. How much you can receive depends on your loan program.
- Escrow fee split. Often split, but negotiable.
- Transfer tax. Who pays varies by city and current market practice. Put it in writing.
- Owner’s title policy. Commonly negotiated.
Seller concessions limits
Loan programs cap how much the seller can contribute to your costs:
- Conventional. Common limits are up to 3 percent if your down payment is below 10 percent, up to 6 percent if you put 10 to 25 percent down, and up to 9 percent if you put 25 percent or more down.
- FHA. Often allows up to 6 percent in concessions.
- VA. Commonly allows up to 4 percent in concessions, with specific rules about which fees can be covered.
These limits can change, so your loan officer should confirm what applies to your file.
Points vs lender credits
- Paying points lowers your rate but increases cash due at closing.
- Taking a lender credit raises your rate slightly and reduces cash to close.
Your Loan Estimate and Closing Disclosure will show the tradeoff. The right choice depends on how long you expect to hold the loan and your monthly cash priorities.
San Mateo checks
Local details can shift your budget by thousands. Here is what to verify for a San Mateo purchase:
- Transfer tax. Confirm San Mateo County and any city surtax and agree on who pays in the contract.
- Property tax reassessment. Expect reassessment to your purchase price, with a base near 1 percent plus local additions.
- Parcel and Mello-Roos assessments. Review your preliminary title report and tax bill for any CFDs or parcel taxes.
- HOA fees and transfers. Ask the HOA management company for resale package, transfer fee, and any move-in requirements.
Get exact numbers
Percent ranges are helpful, but precise quotes keep you from over or underfunding your wire.
- Lender. Request a detailed Loan Estimate that lists lender fees, points or credits, prepaid interest, and required impounds. Your Closing Disclosure must be delivered at least 3 business days before you sign.
- Title and escrow. Ask for the title insurance premium quote and the escrow fee schedule for San Mateo County, including recording fees.
- County offices. Confirm current recording and transfer taxes and review parcel-level tax details with the Assessor’s and Recorder’s offices.
- Preliminary title report. Check for liens, easements, and all special assessments.
- HOA management. Get exact transfer and application fees and proration rules.
Cash to close checklist
- Request a Loan Estimate from at least two lenders and compare.
- Ask your lender about required impounds and prepaid interest based on your target close date.
- Get a San Mateo title and escrow quote that includes both lender’s and owner’s title policies.
- Review the preliminary title report and seller disclosures for parcel taxes, Mello-Roos, and HOA costs.
- Budget for inspections, appraisal, and any repairs you may negotiate.
- Decide who pays transfer tax and how you’ll split escrow and title fees, then write it into the offer.
- Watch timelines. Your Closing Disclosure must arrive at least 3 business days before signing. Confirm wiring instructions by phone with a known contact to avoid wire fraud.
- If you plan to use seller credits, confirm they fit your loan program’s concession limits and are clearly stated in the contract.
- For higher price points, ask your lender and title team for exact premiums rather than relying on percentages.
Quick estimate template
Use this to frame your cash to close. Replace letters with your quotes.
- Purchase price: $X
- Down payment: $Y (not a closing cost)
- Loan amount: $X minus $Y
- Lender fees and any points: estimate A
- Appraisal: estimate B (often $600 to $1,500)
- Escrow fee: estimate C
- Lender’s title policy: estimate D
- Owner’s title policy: estimate E
- Recording and transfer taxes: estimate F
- Prepaids and impounds for taxes, insurance, interest: estimate G
- HOA transfer or resale fees, special assessments: estimate H
- Estimated closing costs = A + B + C + D + E + F + G + H
Ready to plan your close?
If you want a clean, line-item picture of your cash to close for a specific San Mateo home, we’ll coordinate exact quotes with your lender, title, and HOA and walk you through options like seller credits or lender credits. You’ll know what’s fixed, what’s flexible, and where we can negotiate. Reach out to Ektra Real Estate to get started.
FAQs
What are typical buyer closing costs in San Mateo?
- Most buyers should plan for about 2 percent to 5 percent of the purchase price, excluding the down payment, with exact amounts tied to loan terms, impounds, and negotiated credits.
Which closing costs are usually negotiable in California?
- Seller credits to the buyer, the escrow fee split, who pays transfer tax, and who pays for the owner’s title policy are commonly negotiable and should be written into the purchase contract.
How do property taxes affect my cash to close?
- You’ll typically pre-fund several months of property taxes into an impound account and reimburse the seller for prorated taxes, and the property is reassessed to market value after your purchase.
What is included in prepaids and impounds for a mortgage?
- Prepaids usually include daily interest from closing to your first payment and the first year of homeowners insurance, while impounds fund your escrow account with several months of taxes and insurance.
How much can a seller contribute toward my costs?
- Conventional loans commonly cap seller concessions at 3 percent with less than 10 percent down, 6 percent with 10 to 25 percent down, and 9 percent with 25 percent or more down; FHA often allows up to 6 percent and VA commonly up to 4 percent.
