Wondering how much cash you need beyond the down payment to buy in Novato? You are not alone. Closing costs can feel vague, especially when prices in Marin push dollar amounts higher. In this guide, you will see exactly what closing costs usually cover, who typically pays what in Novato, realistic ranges, and simple steps to plan your cash to close with confidence. Let’s dive in.
What closing costs cover in Novato
Closing costs usually run about 2% to 5% of the purchase price. In Marin, the percentage is similar to national ranges, but the dollars are often higher because home prices are higher. Your costs fall into a few core groups.
Lender and loan fees
If you finance your purchase, expect a mix of lender charges and third‑party costs:
- Origination or points: often 0.5% to 1% of the loan amount for processing, underwriting, and profit. Discount points are optional to lower your rate.
- Appraisal: typically $450 to $900 for a single‑family home; higher for complex properties.
- Credit report and processing: about $100 to $800 total across credit, underwriting, and administrative items.
- Mortgage insurance: applies if required by your loan program. Some costs are paid at closing or financed.
Title, escrow, and recording
These fees protect ownership, manage the closing, and record your purchase:
- Title insurance: A lender’s policy protects your lender and is commonly a buyer cost. An owner’s policy protects you; in many Bay Area deals, the seller often pays the owner’s policy, but this is negotiable.
- Escrow fee: the closing agent’s charge is commonly split between buyer and seller. A typical combined escrow fee can be $1,000 to $3,000+, so a buyer’s share may be $500 to $1,500+.
- Recording fees: usually $50 to $250 to record the deed and mortgage.
- Transfer tax: varies by county and sometimes city. Novato does not commonly add a separate city transfer tax. Confirm current county amounts and who pays in your contract.
Prepaids and prorations
You will prepay some items and reimburse the seller for others based on the closing date:
- Property tax proration: Marin County taxes are prorated at closing. You may be charged or credited depending on timing and what has already been paid.
- Prepaid interest: covers interest from your closing date to month end.
- Homeowners insurance: lenders often require the first year’s premium up front.
- HOA dues and fees: expect prorated dues and possible transfer or processing fees in condo or planned community purchases.
- Special assessments: Mello‑Roos or other assessments, if any, appear on your escrow statement.
Inspections and reports
Buyers typically order and pay for inspections during contingencies:
- General home inspection: $300 to $700+.
- Pest/termite inspection: $75 to $250.
- Sewer scope: $150 to $400, common for older homes.
- Specialists: roof, chimney, foundation, septic, or well inspections often run $100 to $700+ each, depending on scope.
Other line items
You may also see:
- Initial impounds for taxes and insurance if your lender requires reserves.
- Courier, wire, or notary fees, often $25 to $200.
- Remote notarization or eClosing convenience fees if used.
Who usually pays what in Novato
Local custom helps, but the purchase contract controls. In many Marin and Bay Area transactions:
- Owner’s title insurance is often paid by the seller. Lender’s title policy is typically a buyer cost. This is negotiable.
- Escrow fees are commonly split between buyer and seller.
- Transfer tax responsibility varies by locality and negotiation. Novato does not commonly add a separate city transfer tax, but confirm county amounts and contract terms.
- Inspections are usually buyer‑paid. Any agreed repairs or credits are negotiated during escrow.
- HOA fees like application or transfer charges may fall to the buyer; check HOA documents and your contract.
How much to budget
Because Marin prices are higher, absolute closing costs can feel large even when the percent is similar to other areas. Here are illustrative ranges for common price points with conventional financing. Your Closing Disclosure will show exact numbers.
Example components you may see
- Lender fees and third‑party loan costs: origination at 0.5% to 1%, appraisal $450 to $900, processing $100 to $800.
- Title, escrow, and recording (buyer share): $1,000 to $4,000+, increasing with price.
- Prepaids and reserves: prepaid interest varies by close date, homeowners insurance $700 to $3,000+, initial escrow deposits can be $1,000 to $10,000+ depending on taxes and loan requirements.
- Inspections: home inspection $350 to $700, termite $75 to $250, sewer scope $150 to $350, plus any specialists.
Total illustrative ranges by price
- $700,000 home: about $8,000 to $20,000 in buyer closing costs, roughly 1.1% to 2.9% of price.
- $1,200,000 home: about $15,000 to $40,000, roughly 1.25% to 3.3%.
- $2,000,000 home: about $30,000 to $80,000+, roughly 1.5% to 4%+.
Actual amounts depend on your loan, title and escrow fee schedules, points, and any credits.
Plan your cash to close
A few steps can make your numbers clear, early:
- Request a Loan Estimate within three business days of applying with a lender. Compare origination, points, and third‑party fees.
- Ask escrow for an estimate based on your purchase price to preview title, escrow, and recording charges.
- Confirm local taxes and assessments with county offices for the property you are buying.
- Discuss seller concessions with your agent if you want help with costs. Loan programs limit concessions, and they can affect offer strength.
- Consider lender credits in trade for a higher rate if reducing cash at closing is a priority.
- Clarify impounds for taxes and insurance and how the closing date affects prepaid interest and your initial escrow deposits.
- Budget for inspections and negotiate any repair credits in writing during contingencies.
- Plan your earnest money deposit at offer acceptance. It counts toward your cash to close but must be available early.
Your Closing Disclosure
Your lender must provide a Closing Disclosure at least three business days before closing. Review it line by line.
- Verify lender fees, title and escrow charges, prepaids, and all credits.
- Confirm wire instructions directly with your escrow officer and follow secure methods.
- Ask for updates if anything changes. Small adjustments can occur right up to signing.
Ways to keep costs predictable
- Shop at least two lenders and compare their Loan Estimates for rate, points, and total cash‑to‑close.
- Negotiate fees that are commonly split, like escrow charges, in your offer and counteroffers.
- Time your closing date with your lender’s input to understand prepaid interest and reserve impacts.
- Right‑size inspections based on property age and condition while leaving room for specialists if needed.
Next steps
Closing costs do not have to be a surprise. When you know what each line covers, what is customary in Novato, and how timing and loan choices affect the bottom line, you can move forward with clarity and confidence. If you are weighing scenarios or want a second look at a Loan Estimate or escrow quote, we are here to help.
Have questions about a specific Novato home or your cash‑to‑close plan? Connect with Falla Associates for local, step‑by‑step guidance from contract to keys.
FAQs
Who typically pays owner’s title insurance in Novato?
- In many Northern California deals, the seller pays the owner’s policy and the buyer pays the lender’s policy, but it is negotiable and set by the purchase contract.
Can a Novato home seller cover my closing costs?
- Yes, seller concessions are negotiable and can reduce your cash to close, subject to loan program limits and overall offer terms.
How are Marin County property taxes handled at closing?
- Taxes are prorated based on the closing date; you may be charged or credited in escrow depending on what has been paid and the billing cycle.
Will HOA transfer or document fees affect my total?
- Possibly; condos and planned communities often have transfer or processing fees and prorated dues, with responsibility set by the contract and HOA rules.
