BUYER EDUCATION
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Escrow Timeline
Offer Accepted- Escrow timing is typically 30 days
Day 0- Offer Accepted and Escrow Opens
Day 3- Earnest Money must be wired to escrow.
Day 7- Seller delivers disclosures
Order Home Insurance
Preliminary Title Report Issued. Fill out the Statement of Information.
Schedule home inspection
Review inspection and negotiate for repairs
Day 17- Inspection Contingency Removal
Day 21- Financial contingency Removal
Sign loan documents (have to be live signatures. No Docusign)
Loan funds
Title Company requests recording with San Diego County
Day 30- Close of Escrow
You get the keys!
You receive the grant deed in the mail
Costs of Buying a Home
Appraisal
Home appraisals can cost $500–$700 depending on location and home price. If you pay for the home appraisal at the time of service, it won’t be included as part of your closing costs.
Inspection
Home inspections are typically paid in-person and are not included as part of your closing costs. Inspections typically cost between $300–$500, which varies based on the property and your local rates.
Earnest Money
In most areas, you will pay an earnest money deposit when you reach mutual acceptance on your home purchase. Earnest money is typically 1%–3% of the home’s price. The amount you pay in earnest money will be subtracted from your closing costs — reducing the total amount you owe at closing.
Loan Origination Fee
Your lender may charge you a fee for creating your loan. Not every lender will charge you an origination fee. Be wary of lenders who charge high fees. Ask your lender what the fee covers and if it’s negotiable.
Loan Processing Fee
Lenders may charge a fee for processing your loan. This fee covers any additional costs incurred for underwriting or services performed to finalize your loan. Similar to the origination fee, ask your lender what the fees cover and if it can be waived.
Loan Discount Points
If you purchased points to lower your interest rate, you will pay a one-time fee for them at closing. A discount point can lower your interest rate by 0.25%–0.5% — and, just like interest rates, the price of points changes daily. While it may seem attractive to pay for a lower interest rate, it may not be worth it in the long run if you don’t plan to own your home for very long or plan to refinance in the future.
Private Mortgage Insurance (PMI)
Private mortgage insurance is required if your down payment is less than 20%. FHA and VA loans may also require you to pay an upfront fee for private mortgage insurance at closing in exchange for allowing you to have a lower down payment. Private mortgage insurance is typically included as part of your monthly loan payment. However, some loans will allow you to pay your private mortgage insurance upfront as a one-time fee at closing. It’s up to you to decide if you want to pay more at closing or a higher mortgage payment each month.
Homeowners Association Dues
If the home you are purchasing has a homeowners association, you will pay one month’s dues upfront at closing. Homeowners association dues vary by property and cover maintenance fees and operations costs.
Homeowner’s Insurance
Your homeowner’s insurance premium for the year may be included in your closing costs.
Property Taxes
You will pay a portion of your property taxes upfront at closing.
Title Insurance
Title insurance is a one-time fee paid as part of your closing costs. As the homebuyer, it’s common for you to pay for the lender and your own title insurance policies.
Recording Fee
The recording fee pays the city or county to record your deed in public records.
