Buying in Novato and wondering how much cash you’ll need beyond the down payment? You’re not alone. Closing costs can feel unclear, especially on a tight timeline. In this guide, you’ll see what typical buyers in Novato pay, how fees break down, and the steps that help you plan with confidence. Let’s dive in.

What are closing costs?

Closing costs are one-time fees and prepaid items required to complete your purchase. They are separate from your down payment. You’ll see lender charges, third-party reports, escrow and title services, government fees, and prorated items like taxes, insurance, and HOA dues.

Most buyers in Novato should plan for a total in the 2%–5% range of the purchase price. Your exact number depends on your loan type, property price, timing, and what you choose to pay upfront (such as discount points).

How much should you budget in Novato?

A practical guideline is 2%–5% of the purchase price. The lower end is common when lender fees are modest or you receive a seller credit. The higher end can apply if you buy down the rate with points, order specialty inspections, or have larger prepaid taxes and insurance.

As prices rise, the percentage sometimes compresses because many fees are flat. Your lender and escrow team will give you exact figures for your transaction.

Typical buyer cost categories

Lender and loan charges

• Loan origination or processing: 0%–1% of the loan amount (or a flat fee).
• Underwriting and admin: commonly $400–$1,200.
• Credit report: $25–$75.
• Discount points (optional): each point equals 1% of your loan amount and can reduce your rate.
• Upfront mortgage insurance (if applicable): varies by loan program.

Appraisal and inspections

• Appraisal: $500–$1,200+ in Marin, depending on property size and complexity.
• Pest/termite: $100–$400.
• Home inspection: $400–$1,000+; roof, sewer, or chimney inspections can add $150–$500 each.

Title and escrow services

• Lender’s title insurance policy: price varies by loan amount.
• Escrow fee (buyer share): typically $1,000–$2,500.
• Courier, notary, and wire fees: $50–$400.

Government and recording

• County recording fees: usually tens to a few hundred dollars.
• Transfer taxes: In California, local customs vary. Many areas have transfer taxes that are often paid by the seller, but this can be negotiated. Confirm current fees and customs for Novato with your escrow officer and lender.

Prepaid items and escrows

• Property taxes: California’s base rate is about 1% of assessed value, plus local assessments. You’ll pay a prorated share at closing, depending on the date.
• Homeowners insurance: often the first year is prepaid, commonly $800–$2,500+.
• Prepaid interest: covers the days between closing and your first payment.
• Initial escrow deposit: lenders often collect 2–6 months of tax and insurance reserves.

HOA and community charges (if applicable)

• HOA transfer or estoppel fees: $100–$500, depending on the HOA.
• Prorated HOA dues: you typically reimburse the seller for the unused portion.

Optional items

• Home warranty: $300–$700.
• Survey (rare in many California resales): $300–$1,000 if required.

Who pays what in California

California customs vary by county and can shift with market conditions. It is common for buyers to pay lender-related fees, inspections, the lender’s title policy, and a portion of escrow. Sellers often pay the owner’s title policy and transfer taxes. All of this is negotiable and should be confirmed with your lender, agent, and escrow team.

For statewide practice notes, you can review the California Department of Real Estate for consumer guidance and updates. If you need current recording fees or transfer tax schedules, check with the Marin County Recorder-County Clerk and confirm details with your escrow officer.

Property taxes in Marin: what to expect

Under Proposition 13, the base property tax rate is roughly 1% of the assessed value. Marin properties may include additional local assessments or voter-approved bonds, which vary by parcel. At closing, you’ll pay a prorated share of taxes based on your close date. Your lender may also collect an initial escrow deposit to keep tax and insurance payments on track.

If you want parcel-specific tax details, your escrow or title team can provide estimates and point you to county resources.

Sample closing cost scenarios in Novato

These examples are for illustration only. Your actual costs will come from your lender and escrow/title team.

Example A: purchase price $800,000

Estimated buyer closing costs (2.0%–3.0%): $16,000–$24,000

• Lender fees and any points: $2,000–$6,000
• Appraisal and inspections: $900–$2,000
• Escrow and title (buyer side): $1,200–$2,500
• Prepaid insurance and initial escrows: $1,500–$3,000
• Recording and miscellaneous: $200–$600
• Property tax proration: varies by closing date

Example B: purchase price $1,500,000

Estimated buyer closing costs (1.8%–3.0%): $27,000–$45,000

• Lender fees and possible points: $3,000–$10,000+
• Appraisal and inspections: $1,200–$3,000+
• Escrow and title: $1,800–$4,000
• Prepaid insurance, taxes, and escrow deposits: $3,000–$7,500+
• Recording and miscellaneous: $300–$800

Example C: purchase price $2,500,000

Estimated buyer closing costs (1.8%–2.8%): $45,000–$70,000

• Several items scale with loan amount, including title, escrow, lender fees, and prepaid tax and insurance escrows.

Your timeline and required disclosures

• Loan Estimate: Your lender must provide a Loan Estimate within three business days of your application. It outlines rates, fees, and estimated cash to close. Learn more about the Loan Estimate from the Consumer Financial Protection Bureau.
• Closing Disclosure: You must receive the Closing Disclosure at least three business days before closing. This document shows final numbers and the exact cash to close. Review the CFPB’s overview of the Closing Disclosure and timing rules.
• Settlement statements: Escrow and title will prepare a preliminary settlement statement before closing. Compare it to your Loan Estimate and Closing Disclosure and ask questions right away if anything seems off.

How to plan and reduce costs

• Compare lenders: Request written Loan Estimates from at least two lenders and ask about lender credits.
• Consider rate vs. points: Calculate the breakeven on discount points before paying them.
• Request itemized title and escrow quotes: Fees vary by company and transaction details.
• Negotiate seller credits: Within loan program limits, a seller credit can offset your closing costs.
• Plan prepaid items: Ask your lender to estimate insurance, tax proration, and initial escrows.
• Protect your funds: Verify wire instructions by phone using a known escrow contact. Treat last-minute changes as suspicious.

Quick checklist for your team

• Ask for a written estimate of all closing costs and who customarily pays each item in Novato.
• Verify the Loan Estimate and Closing Disclosure timelines.
• Request itemized title and escrow fee estimates.
• Confirm required inspections and approximate costs based on the property.
• Confirm wiring procedures and a trusted contact for settlement funds.

Work with a local expert

Closing costs in Novato are manageable when you know what to expect and have the right team guiding you. You’ll get clarity on fees, help coordinating lenders and escrow, and steady communication from offer to keys.

If you’re planning a purchase in Novato or greater Marin, reach out to Elizabeth for thoughtful, high-touch support that fits your timeline and goals. Request a Personalized Market Consultation with Elizabeth Green Kilgore.

FAQs

What are typical buyer closing costs in Novato?

• Most buyers should plan for 2%–5% of the purchase price, depending on loan type, points, inspections, and prepaid items.

Who usually pays which fees in California home sales?

• Buyers often pay lender fees, inspections, the lender’s title policy, and part of escrow; sellers often pay the owner’s title policy and transfer taxes, but all items are negotiable.

When will I know my exact cash to close?

• You must receive a Closing Disclosure at least three business days before closing, which shows your final cash to close.

How can I lower my closing costs as a buyer?

• Compare lenders, ask about lender credits, negotiate a seller credit, and request itemized quotes for title, escrow, and inspections.

What should I know about property taxes at closing in Marin?

• Expect prorated property taxes based on your close date and an initial escrow deposit if your lender collects taxes and insurance.

How do I avoid escrow wire fraud?

• Always verify wiring instructions by calling your escrow officer at a known number and treat any last-minute changes as suspicious.