Buying in San Mateo is exciting, but the moment you get an accepted offer, a new question appears: how much cash will you need to close? You want a clear number, not a surprise on the final week. In this guide, you’ll learn what closing costs typically include, how much to budget, and which fees are negotiable in our local market. You’ll also get a simple checklist to keep your lender, escrow, and title in sync. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepaids you pay to complete your purchase. They are separate from your down payment. Most buyers will see these common categories on their Loan Estimate and Closing Disclosure:
- Lender charges: origination, processing, underwriting, credit report, and any discount points you choose to buy down your rate.
- Appraisal: a third party confirms the home’s value for the lender.
- Title and escrow: escrow fee for handling the closing, title search, and the lender’s title insurance policy.
- Government and recording: county recording fees and any transfer taxes set by the county or city.
- Prepaid items and reserves: prepaid mortgage interest, initial deposits for property taxes and homeowner’s insurance, and any HOA dues or transfer fees due at closing.
- Inspections and reports: home inspection, pest inspection, and any specialty inspections you order.
- Miscellaneous: wire or courier fees, optional home warranty, and other admin charges.
San Mateo customs and who pays
California uses a standard purchase contract that leaves many fees negotiable. Local patterns are helpful, but they are not rules. Here is what you can usually expect on the Peninsula:
- Buyers typically pay their lender-related fees, the appraisal, the lender’s title policy, and recording fees related to the mortgage.
- Sellers commonly pay for the owner’s title policy. Escrow fees are often split or negotiated in the contract.
- Transfer taxes vary by city and county. Who pays is negotiated and can shift with market conditions.
- If the home is in an HOA, buyers often pay transfer or move-in fees, while dues are prorated as of closing.
Always confirm the expected split in your executed contract and on the escrow fee estimate. If you want the seller to credit some or all of your closing costs, ask early and confirm your lender’s program limits.
How much to budget
A practical range for buyers is 2 to 5 percent of the purchase price, excluding the down payment. Your actual number depends on your loan size, whether you buy points, local transfer taxes, and how much you need in prepaids.
Illustrative ranges seen on the Peninsula:
- Escrow fee: about $1,000 to $3,000, often shared or negotiated.
- Lender’s title policy: about $800 to $4,000, depending on the loan amount.
- Appraisal: about $500 to $1,500, higher for complex properties.
- Lender origination and fees: roughly 0.5 to 1.5 percent of the loan amount, plus optional points.
- Prepaid taxes and insurance: several hundred to several thousand dollars, often 2 to 6 months of estimated taxes and insurance.
- Homeowner’s insurance first-year premium: about $700 to $2,500 or more.
- HOA transfer or estoppel fees: often $100 to $500.
- Recording fees: usually $50 to $250 per document.
- Pest inspection: about $100 to $400, with repair costs varying by findings.
Transfer taxes can add hundreds to thousands of dollars depending on the property’s city and sale price. Check San Mateo County and the specific city for current rules before you finalize your offer.
Property taxes and assessments
In California, property taxes are collected by the county and prorated at closing. Some San Mateo neighborhoods include special assessments or Mello-Roos. These show up in the preliminary title report and county tax records. Review them early so your monthly budget reflects accurate ongoing costs.
HOA and condo considerations
If you are buying in a community with an HOA, factor in a few extra items:
- HOA transfer or move-in fees and any associated scheduling requirements.
- Proration of dues as of your close date.
- HOA document and estoppel fees that escrow must order early.
- Any special assessments that are disclosed and how they will be handled at closing.
Buyer worksheet: quick checklist
Use this list to estimate and organize your costs. Replace estimates with your lender and escrow figures as you get them.
- Purchase price, down payment percent, and loan amount
- Lender origination fee and any points
- Appraisal, credit report, processing, and underwriting
- Lender’s title insurance policy
- Escrow fee (your portion)
- Recording fees
- Any transfer taxes you are obligated to pay
- Prepaid interest (closing date to first payment period)
- Initial escrow deposits for taxes and insurance
- First-year homeowner’s insurance premium
- HOA transfer or move-in fee
- Pest and home inspections, plus a repair reserve
- Wire or courier fees
- Optional items like a home warranty
Outputs to track:
- Total buyer closing costs
- Funds to bring to closing = closing costs + down payment − seller credits − earnest money deposit
- Contingency buffer of 1 to 2 percent of purchase price or a flat $2,000 to $5,000
Next steps with lender, escrow, and title
Before you write or as soon as you are in contract:
- Get preapproved and request a Loan Estimate from your lender.
- Ask for a sample Closing Disclosure for a similar loan size to understand categories.
- Request a preliminary title report and an escrow estimate.
- Ask about local transfer taxes, any Mello-Roos, and special assessments.
- Confirm HOA fees and dues proration if applicable.
During escrow:
- Review the escrow company’s estimated settlement statement and compare it to your Loan Estimate.
- Confirm in writing who pays which fees per the contract; negotiate a seller credit if needed and allowed by your loan program.
- Schedule inspections and the appraisal; plan for any repair costs or credits.
Final week:
- Expect your final Closing Disclosure at least 3 business days before closing.
- Compare it to your Loan Estimate and ask about any changes.
- Prepare funds early and follow escrow’s instructions for delivery.
Safety tips for wiring funds
Wire fraud is a real risk. Protect yourself with simple habits:
- Only use wiring instructions provided by escrow and confirm them by calling a verified phone number.
- Never rely on emailed wiring changes without live verbal confirmation.
- Send a small test wire if time allows, then confirm receipt before sending the full amount.
Local transfer taxes and recording
San Mateo County recording fees are set by the county. Cities on the Peninsula may add a local transfer tax or fee tied to the sale price. The payer is negotiable and should be confirmed in your contract and escrow estimate. Because rates and rules can change, verify the property’s city and check the current requirements with the county recorder and the city before closing.
Are closing costs negotiable?
Yes. Many items are negotiable and guided by the contract. You can also request a seller credit toward your costs. Your lender may limit how much the seller can contribute based on your loan type and down payment, so confirm your program’s rules with your loan officer early.
When to expect firm numbers
Your lender’s Loan Estimate outlines categories and best estimates early in the process. Your final Closing Disclosure will provide the exact numbers before signing. Compare the two and ask your lender and escrow officer to explain differences. This step helps you bring the right amount to closing with confidence.
Ready to buy with clarity?
If you want a precise estimate tailored to your San Mateo purchase, we can coordinate with your lender and escrow to itemize real numbers and protect your timeline. For calm, expert guidance from offer to closing, connect with Mariana Pappalardo.
FAQs
How much should a San Mateo buyer budget for closing costs?
- A practical planning range is 2 to 5 percent of the purchase price, excluding the down payment; confirm with your Loan Estimate for exact figures.
Who usually pays for title insurance in California?
- Sellers commonly pay for the owner’s title policy, while buyers usually pay for the lender’s policy; the split is negotiable in the purchase contract.
What closing costs are prepaid or escrowed at closing?
- You may prepay mortgage interest, fund initial escrow reserves for property taxes and homeowner’s insurance, and prepay any HOA dues or transfer fees.
Can a seller cover some of my closing costs?
- Yes, seller credits are common, but the maximum allowed depends on your loan type and down payment; ask your lender for your program’s limits.
What local fees should San Mateo buyers watch closely?
- City or county transfer taxes, special assessments or Mello-Roos listed in the title report, HOA transfer fees, and higher title or escrow fees tied to price.
When will I see my final closing numbers?
- Most buyers receive a final Closing Disclosure at least 3 business days before signing; compare it to your earlier Loan Estimate and ask about any changes.
