How much are closing costs for a home buyer?
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Buyer closing costs typically range from 2-5% of the purchase price. On a $600,000 San Diego home, expect to pay $12,000-$30,000 in closing costs. This includes loan origination fees, appraisal, title insurance, escrow fees, and prepaid items like property taxes and insurance.
What's included in buyer closing costs?
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Typical buyer closing costs include: Loan origination fee (0.5-1% of loan), Appraisal ($400-$600), Title insurance ($1,000-$3,000), Escrow fees ($1,000-$2,000), Prepaid property taxes, Homeowner's insurance, and Recording fees.
Can I negotiate closing costs?
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Yes! Several closing costs are negotiable: Lender fees can be reduced by shopping multiple lenders. Title and escrow companies offer competitive pricing. You can also ask the seller to contribute toward closing costs (common in buyer's markets) or negotiate lender credits for a slightly higher rate.
Are closing costs tax deductible?
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Some closing costs are tax deductible. Deductible items include mortgage interest, property taxes, and discount points paid at closing. Not deductible: title insurance, appraisal fees, escrow fees, and recording fees. Consult a tax professional for your specific situation.
When do I pay closing costs?
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Closing costs are due on closing day — the day you sign your final loan documents and take ownership. You'll typically wire the funds to the escrow company 1-2 days before closing. Some costs like the appraisal and home inspection are paid earlier during the process.