Closing Costs Explained | North County San Diego, Inland Empire & Atlanta Buyers

Closing Costs Explained

Every homebuyer pays closing costs, no matter the loan type — even VA buyers who use $0 down financing. This page explains what closing costs include, what’s optional, what’s required, and how to reduce your upfront expenses when buying in North County San Diego, the Inland Empire, or Metro Atlanta.

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What Are Closing Costs?

Closing costs are the fees and expenses required to complete your home purchase and your mortgage loan. They’re separate from your down payment and usually total 2–3% of the purchase price, depending on location and loan program.

Typical Closing Cost Categories

  • Lender fees: underwriting, processing, rate buydowns, and points.
  • Third-party fees: appraisal, credit report, title insurance, escrow, notary.
  • Government fees: recording fees and transfer taxes (where applicable).
  • Prepaids: property taxes, homeowner’s insurance, and interest.
  • Initial escrow account setup: funds held by your lender to pay future taxes and insurance.

Our How Much Home Can I Afford? page helps you understand how these costs fit into your budget.

How Much Are Closing Costs?

The exact amount depends on your loan program, price point, and location:

  • North County San Diego: typically higher due to county fees and price points
  • Inland Empire: moderate costs; seller credits are more common
  • Atlanta: varies by county; transfer taxes may apply

Most buyers should expect:

  • FHA loans: 2.5–3.5% of purchase price
  • Conventional loans: 2–3% of purchase price
  • VA loans: 1–3% depending on lender credits and concessions

Ways to Reduce Your Closing Costs

1. Down Payment Assistance

Many buyers use DPA to reduce upfront cash needed. Review your area:

2. Seller Credits

Sellers may offer concessions to cover closing costs. This is common in the Inland Empire and Atlanta, and still possible in certain North County San Diego neighborhoods.

3. Lender Credits

You may opt for a slightly higher interest rate in exchange for credits that offset your closing costs.

4. VA Benefits (Valor Home Advantage)

VA buyers may reduce their costs using:

  • VA-specific lender credits
  • Seller concessions up to 4%
  • Programs that allow assistance for closing costs

More details on the VA & Military Homebuyers page.

Which Closing Costs Are Required?

Some fees are optional (e.g., certain buydowns), but most are unavoidable. Required items usually include:

  • Appraisal
  • Credit report
  • Title and escrow fees
  • Recording fees
  • Initial prepaid taxes and insurance

We review every fee with you when preparing your loan estimate.

Closing Costs for VA Buyers

VA loans eliminate the down payment but do not eliminate closing costs. Typical VA costs include:

  • Appraisal
  • Title and escrow fees
  • Prepaid taxes & insurance
  • VA funding fee (unless exempt)

Many VA buyers combine VA-friendly DPA with our Valor Home Advantage program to reduce total upfront expenses.

When Are Closing Costs Due?

You pay closing costs at the end of the transaction, usually during signing. In a typical 21–30 day escrow:

  • Initial deposit (EMD) is made after your offer is accepted
  • Additional funds are due at closing
  • Cash needed may be reduced by seller credits or DPA

Related Buyer Resources

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