Buying a home in Santa Clarita is exciting, but the final numbers at closing can feel confusing. You want to know exactly what you will pay, what is negotiable, and how to avoid last-minute surprises. This guide breaks down typical buyer closing costs, local taxes and fees, and smart ways to budget so you can move forward with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees and prorated items you pay at closing in addition to your down payment. In California, buyers often budget about 2% to 5% of the purchase price for closing costs, not counting prepaid taxes and insurance. The exact amount depends on your loan, the property, and how costs are split in your contract.
Common categories include:
- Loan and lender fees
- Title insurance and escrow fees
- County recording and transfer taxes
- Inspections and reports
- Homeowner’s insurance and prepaid interest
- HOA and community fees
- Prorations for property taxes and dues
Typical buyer costs in Santa Clarita
Loan and lender fees
If you are financing, you will likely see origination, processing, and underwriting fees. Some lenders charge a percentage of the loan amount, while others use flat fees. Discount points are optional and reduce your interest rate for an upfront cost.
You will also pay for an appraisal, which often runs about $450 to $900 depending on the property and loan type. A credit report fee is a small line item. If your loan requires mortgage insurance, you could see upfront or monthly premiums. Plan for prepaid interest from the day you close through the end of that month.
Title insurance and escrow
Two title policies exist: an owner’s policy and a lender’s policy. In much of Southern California, sellers commonly pay for the owner’s policy, while buyers pay for the lender’s policy if there is a mortgage. Escrow companies charge fees for managing the closing, and those are often split by negotiation. Exact customs can vary by submarket and deal, so confirm in your purchase contract and with the escrow officer.
Recording and transfer taxes
Los Angeles County charges recording fees to record the deed and mortgage. A documentary transfer tax may also apply. These amounts vary by jurisdiction and are itemized by your title and escrow teams. Who pays can be negotiated, but many buyers plan to cover their recording costs.
Inspections and reports
You typically pay for a general home inspection and a termite or pest inspection. Typical ranges are:
- Home inspection: $300 to $700
- Termite or pest inspection: $75 to $250
Specialized inspections may be recommended based on the property, such as sewer, septic, or geological evaluations. Schedule these early in your contingency period so you have time to review results and negotiate repairs or credits if needed.
HOA and community fees
If the home is in an HOA, expect a resale disclosure package, transfer or move-in fees, and prorated dues. Some communities also have pending assessments that you should review early. Many Santa Clarita neighborhoods include Community Facilities Districts (often called Mello-Roos). These are special taxes added to your annual property tax bill and can materially affect your monthly budget.
Insurance and prepaids
Most lenders require you to prepay the first year of homeowner’s insurance at closing. The premium varies by home and coverage level and can range from several hundred to a couple thousand dollars. If a property is in a higher wildfire risk area, you should obtain quotes early to understand costs. You will likely fund an impound account for property taxes and insurance, which increases the cash you need to close.
Prorations and miscellaneous
Property taxes, HOA dues, and certain utilities are prorated based on your closing date. You might also see notary, courier, or wiring fees. In California, surveys are less common, but your escrow officer will confirm any property-specific requirements.
Santa Clarita taxes and special districts
Property tax basics
Under Proposition 13, California sets a base property tax rate of 1% of assessed value, plus voter-approved local assessments and special taxes. Your effective rate is commonly more than 1%, depending on the neighborhood and local measures. Los Angeles County follows the statewide schedule, with installments typically due in November and February, and specific delinquency dates published by the county.
Mello-Roos and CFDs
Many newer Santa Clarita developments are within Community Facilities Districts. These special taxes fund infrastructure and services and are billed annually with your property taxes. They do not change your assessed value, but they do increase your tax bill. You can confirm whether a property is in a CFD through the Preliminary Title Report, seller disclosures, MLS details, or county tax records. Always ask your agent and escrow team for documentation so you know the exact annual amount.
How much to budget
A practical rule of thumb for buyers in Santa Clarita is to budget 2% to 5% of the purchase price for closing costs, plus prepaid items such as taxes, insurance, and interest. The total depends on your loan size, interest rate, discount points, HOA or CFD fees, and how costs are negotiated in your contract.
Example: $600,000 purchase
- Estimated buyer closing costs at 2.5%: about $15,000
- Plus prepaid items for taxes and insurance, which may add a few thousand depending on timing
Example: $900,000 purchase
- Estimated buyer closing costs at 3%: about $27,000
- Plus prepaid items and any HOA or CFD prorations at transfer
These are illustrative only. Your lender’s Loan Estimate and your escrow officer’s itemized estimate will give you a clearer picture. Three business days before closing, you will receive a final Closing Disclosure that shows the exact amount due.
Who pays what
In Southern California, it is common for sellers to pay for the owner’s title insurance policy. Buyers usually pay for the lender’s policy if they finance, their share of escrow fees, recording charges, inspections, and prepaid items. That said, almost everything is negotiable. Depending on the market, you may ask for seller credits to offset some of your closing costs. Your agent can help you structure an offer that meets lender rules and supports your affordability goals.
Timeline and disclosures
Within three business days of applying for a mortgage, your lender must provide a Loan Estimate with projected interest rates, payments, and closing costs. At least three business days before you close, you must receive a Closing Disclosure that shows final numbers. Review each document carefully and ask questions early so there is time to address any issues.
For wiring funds, always confirm instructions directly by phone with your escrow officer to protect yourself from wire fraud. Plan for a wire or cashier’s check for your final amount to close. Your escrow officer can provide a preliminary statement of funds due a few days ahead so you can prepare.
Cost-saving tips
- Compare lenders and ask for a detailed fee breakdown.
- Request an early itemized estimate from your escrow and title company.
- Ask whether seller credits can offset your closing costs, subject to lender rules.
- Verify any Mello-Roos or special taxes and review HOA documents for upcoming assessments.
- Schedule inspections early to keep your negotiating window open.
- Shop homeowner’s insurance early, especially if the property has wildfire risk.
- Confirm who pays each title and escrow fee in your contract rather than relying on custom.
- Watch your closing date. A month-end closing can reduce prepaid interest, while an early-in-the-month closing may increase it.
What to expect at closing
Before closing, complete your final walkthrough and confirm any agreed repairs. Review your Closing Disclosure, wire your cash to close per escrow instructions, and bring valid ID for signing. Your escrow officer coordinates recording with the county. Once recording is confirmed, you are the owner and can get keys.
Ready to map out your exact numbers and timing? We guide you from offer to keys with clear estimates, proactive communication, and local expertise. Connect with the team at Rose District to plan your next move.
FAQs
How much do Santa Clarita buyers typically pay at closing?
- Most buyers budget about 2% to 5% of the purchase price for closing costs, plus prepaid taxes, insurance, and interest.
What are common buyer-paid fees in Santa Clarita?
- You usually pay loan fees, appraisal, inspections, lender’s title policy, your share of escrow, recording fees, and prepaid items.
Do buyers pay Mello-Roos taxes?
- Yes, the annual Mello-Roos tax appears on the property tax bill; at closing, taxes are prorated so you may reimburse the seller for a prepaid period.
Who typically pays for owner’s title insurance?
- In Southern California it is common for the seller to pay the owner’s policy, but this is negotiable and should be confirmed in your contract.
Can I roll closing costs into my mortgage?
- Some costs may be financed or offset with seller credits within lender guidelines, but many fees and prepaids are due at closing.
How do I get an exact estimate of my closing costs?
- Ask your lender for a Loan Estimate and your escrow officer for an itemized estimate; your Closing Disclosure will show final numbers three business days before closing.
