Are you trying to budget for a Danville home and keep hearing about “closing costs,” but you are not sure what that really means? You are not alone. Many buyers focus on the down payment and then get surprised by the other dollars due at signing. You deserve a clear, local breakdown so you can plan with confidence.

In this guide, you will learn what closing costs include, who typically pays what in California and the East Bay, how your loan type can change the numbers, and how to estimate your own total. You will also get two illustrative examples you can adapt to your price point. Let’s dive in.

What closing costs include in Danville

Closing costs are the one-time expenses to transfer title and, if you are financing, to originate and record your mortgage. They generally fall into four buckets:

• Lender fees and services, including origination, processing, underwriting, appraisal, credit report, and small vendor checks.
• Title, escrow, and recording, including title insurance and the escrow company’s settlement charge.
• Prepaids and reserves, including property tax prorations, initial escrow deposits, first year homeowners insurance, and prepaid interest.
• Inspections and miscellaneous items, including home and pest inspections, HOA document fees, notary, and courier.

How much buyers typically pay

A common rule of thumb in California and the East Bay is 2 percent to 5 percent of the purchase price for buyer closing costs, excluding the down payment. Your actual total can be lower or higher based on loan type, purchase price, local taxes and assessments, and any negotiated seller credits.

In Danville and greater Contra Costa County, plan for these local checks on every purchase:

• Property taxes and parcel assessments. California property taxes start near 1 percent of assessed value, then add parcel and special assessments that vary by property.
• Transfer taxes. Confirm whether Contra Costa County or the Town of Danville charges a documentary transfer tax on the sale and how it is typically split in your contract.
• HOA costs. Some communities include HOA dues and separate HOA document or transfer fees.
• Market conditions. In competitive East Bay markets, sellers sometimes cover items such as the owner’s title insurance policy or a share of escrow fees. In other cycles, buyers cover more. Customs can vary by neighborhood and price bracket.

Line-by-line buyer costs and typical ranges

Below are common buyer items, who usually pays in California, and typical ranges. Actual figures depend on your loan, price, provider, and timing.

Lender fees and services

• Loan origination, processing, underwriting. Buyer typically pays. Origination is often 0.5 percent to 1.0 percent of the loan amount or a flat fee. Processing or underwriting can range from $300 to $1,500.
• Discount points. Optional, paid by buyer to reduce the interest rate. One point equals 1 percent of the loan amount.
• Appraisal. Buyer typically pays. In the Bay Area, many run $600 to $1,200, depending on home type and complexity.
• Credit report, flood determination, tax service. Buyer typically pays. Combined total often $50 to $300.
• Mortgage insurance. If you put less than 20 percent down on a conventional loan, plan for private mortgage insurance as a monthly cost. FHA and VA follow different rules that can include upfront fees.

Title, escrow, and recording

• Title insurance. California uses two policies. By custom, the seller often pays the owner’s policy and the buyer pays the lender’s policy, though this is negotiable and can vary locally. The lender’s policy cost scales with the loan amount.
• Escrow or settlement fee. Often split between buyer and seller in California and negotiable. Buyer share often falls between $800 and $2,500 per side, depending on price and provider.
• County recording fees. Buyer typically pays to record the deed of trust or mortgage. Expect roughly $50 to $300.

Prepaids and reserves

• Property tax proration and initial escrow deposits. Buyer reimburses the seller for any prepaid taxes due for the period after closing and funds an escrow account for upcoming tax and insurance bills if required by the lender. Many lenders collect 2 to 6 months of taxes and insurance at closing. The exact amount depends on your closing date and the county tax calendar.
• Homeowners insurance. Buyer typically pays the first year’s premium at or before closing. Many East Bay buyers see $700 to $3,000 or more, depending on coverage and property specifics.
• Prepaid interest. Buyer pays daily interest from closing through the end of the month. The cost depends on your loan amount, rate, and closing date.

Inspections and reports

• Home inspection. Commonly $300 to $800, depending on size and scope.
• Pest or termite inspection. Often $150 to $400. In California, either party may agree to cover this.
• Specialist inspections. Sewer, roof, chimney, or HVAC can run $100 to $500 each.
• HOA document or estoppel fees. If the property is in an HOA, budget $150 to $400 for the association’s required disclosures.

Miscellaneous

• Notary. Often $10 to $25 per signature.
• Courier. Often $25 to $200.
• Home warranty. Optional and sometimes negotiated. Frequently $300 to $700.

Transfer taxes and local taxes

A county or city documentary transfer tax may apply. Who pays is negotiable and can be split or seller paid by local custom. For Danville and Contra Costa County, confirm any transfer tax with the County Recorder and the Town of Danville for your specific property before estimating totals.

Who usually pays what in California

While every contract is negotiable, here are common practices across California that often carry into Danville transactions:

• Owner’s title insurance policy. Commonly seller paid by custom.
• Lender’s title policy. Commonly buyer paid.
• Escrow or settlement fee. Often split 50-50 between buyer and seller, though this can vary.
• Recording and lender fees. Commonly buyer paid.
• Transfer tax. Negotiable. Local custom varies and should be confirmed for the specific town and county.

If you are buying in a very competitive segment, you might see sellers cover certain costs to secure a deal, including an owner’s title policy or a portion of escrow fees. In a softer segment, buyers may cover more of the ordinary line items. Your agent can advise you on current custom by neighborhood and price point.

How your loan type changes costs

Your loan program affects what you pay at closing and what you pay monthly. Here is how the major loan types differ.

Conventional loans

• Down payment can be as low as 3 percent, though many buyers put 10 percent to 20 percent down.
• Private mortgage insurance is required with less than 20 percent down. This is a monthly cost unless you choose a lender-paid option with a higher interest rate or a one-time premium.
• Upfront costs include standard lender fees, appraisal, title and escrow, and prepaids. Discount points are optional.

FHA loans

• FHA charges an upfront mortgage insurance premium that is commonly 1.75 percent of the loan amount. You can finance this or pay it at closing. Verify the current percentage when you apply.
• An annual mortgage insurance premium is added to your monthly payment, often for the life of the loan depending on your down payment and current rules.
• Sellers can contribute closing cost credits within FHA limits, which can reduce your cash to close.

VA loans

• Eligible veterans and service members pay a one-time VA funding fee that varies by down payment and service history. This can be financed.
• VA loans do not require monthly private mortgage insurance.
• VA allows certain seller-paid costs and concessions, which can lower your cash due at closing.

Jumbo loans

• For loan amounts above conforming limits, lenders may charge higher fees, require larger cash reserves, and order more complex appraisals.
• Escrow deposits for taxes and insurance may be larger based on lender requirements.

Cash purchases

• You avoid lender fees and lender-required appraisal, though you may still choose to order an appraisal and inspections.
• You still pay title, escrow, recording, any transfer taxes, inspections, and any HOA fees.

Quick estimate worksheet

Use the checklist below to sketch a personalized estimate. These numbers are illustrative only. Actual costs vary. Request a Loan Estimate from your lender within three business days of application and ask your escrow officer for a preliminary title and escrow quote for your address.

Illustrative only. Obtain a Loan Estimate and local escrow and title quotes for transaction-specific amounts.

Example A: first-time buyer (illustrative)

• Purchase price: $800,000
• Down payment: 5 percent ($40,000)
• Loan amount: $760,000
• Sample buyer closing costs:
  • Origination at 0.5 percent: $3,800
  • Appraisal: $800
  • Lender’s title policy: $1,200
  • Escrow buyer share: $1,400
  • Recording, courier, notary: $200
  • Homeowners insurance, first year: $1,200
  • Initial escrow deposits, 3 months: $3,000
  • Inspections and HOA: $700
  • Prepaid interest: $1,000
• Estimated total cash to close, excluding down payment: about $13,300
• Note: With FHA, add the upfront mortgage insurance premium at approximately 1.75 percent of the loan amount. You can finance this premium.

Example B: move-up buyer (illustrative Danville scenario)

• Purchase price: $1,500,000
• Down payment: 20 percent ($300,000)
• Loan amount: $1,200,000
• Sample buyer closing costs:
  • Origination at 0.5 percent: $6,000
  • Appraisal, complex: $1,200
  • Lender’s title policy: $2,200
  • Escrow buyer share: $2,500
  • Recording, courier, notary: $200
  • Homeowners insurance, first year: $1,800
  • Initial escrow deposits, 3 months: $6,000
  • Inspections and HOA: $750
  • Prepaid interest: $2,000
• Estimated total cash to close, excluding down payment: about $22,650
• Note: Jumbo loans can include higher lender fees, more complex appraisal costs, and larger escrow deposits.

Local checks before you sign

• Confirm transfer taxes with Contra Costa County and the Town of Danville for your specific address and contract split.
• Review property tax parcel data for any special assessments such as Community Facilities District or Mello-Roos that affect prorations and escrow deposits.
• If the property is in an HOA, ask for a list of HOA document, transfer, or move-in fees.
• Ask your lender for a Loan Estimate. Lenders must deliver one within three business days after you apply.
• Ask your escrow officer for a preliminary title, escrow, and recording estimate for your transaction.

Ways to lower out-of-pocket

• Negotiate seller concessions where allowed by your loan program and market conditions.
• Compare lenders on origination fees and overall rate-cost tradeoffs. Only buy discount points when the breakeven makes sense for your timeline.
• Ask about financing allowable fees into your loan, subject to loan-to-value and appraisal.
• Where permitted, compare escrow and title quotes so you understand provider fees.
• Time your closing date to minimize prepaid interest if your schedule allows.

Ready to run your numbers?

You should feel calm and prepared when you make an offer. If you want a transaction-specific estimate and guidance on local customs by neighborhood and price point, reach out. As a Danville native and a hands-on advisor, Ashley Mancera will help you compare loan options, gather accurate quotes, and negotiate a clean, confident path to closing.

FAQs

What are typical buyer closing costs in Danville?

• Many buyers see 2 percent to 5 percent of the purchase price in closing costs, excluding the down payment, with totals varying by loan type, price, taxes, assessments, and any seller credits.

Who usually pays for title insurance in California?

• By custom the seller often pays the owner’s title policy while the buyer pays the lender’s policy, but parties can negotiate and local practice should be confirmed for Danville.

How do FHA and VA loans affect closing costs?

• FHA typically includes an upfront mortgage insurance premium that can be financed, and VA includes a funding fee that can be financed; both programs allow certain seller concessions that can reduce cash to close.

What is the biggest buyer cost at closing?

• It depends on your loan and timing, but lender fees plus initial escrow deposits for property taxes and insurance are often the largest portions for many buyers.

Where do I get exact numbers for my purchase?

• Your lender’s Loan Estimate and Closing Disclosure and your escrow officer’s preliminary statement will list itemized figures; also confirm transfer taxes and parcel assessments with Contra Costa County and the Town of Danville for your address.