Are you budgeting for a home in Oakdale and wondering how much to set aside for closing costs? You’re not alone. It’s easy to focus on the down payment and overlook the other fees that show up at signing. In this guide, you’ll learn what closing costs cover, how much buyers typically pay in Oakdale and Stanislaus County, how loan type changes the numbers, and smart ways to prepare and save. Let’s dive in.
Closing costs, simply explained
Closing costs are the fees and prepaids you pay to finalize your home purchase. They are separate from your down payment. Some costs are true fees, while others are prepayments or reserves placed into an escrow account for future bills like property taxes and insurance.
You’ll see these costs on two key lender documents: your early Loan Estimate and the final Closing Disclosure. Your escrow company will also provide a settlement statement that shows the exact cash to close.
How much to budget in Oakdale
Most Oakdale buyers can expect total closing costs of about 2-5% of the purchase price. The range depends on your loan program, whether you pay discount points, who pays for the owner’s title policy, and the amount of prepaid taxes and insurance collected.
- Example: On a $400,000 home, closing costs might land around $8,000 to $20,000.
- Example: On a $700,000 home, closing costs might land around $14,000 to $35,000.
Your Loan Estimate will show a personalized range. Use it to compare lenders and fee structures.
What buyer costs include
Closing costs fall into a few common buckets. Here’s what you’ll typically see in an Oakdale purchase.
Lender and loan fees
- Origination, processing, and underwriting fees: Set by the lender for creating and approving your loan.
- Credit report fee: A small charge to pull your credit.
- Appraisal fee: Usually paid upfront or at closing; required by most lenders.
- Flood certification: A small fee to confirm the property’s flood zone status.
- Discount points: Optional cost to buy down your interest rate. One point equals 1% of the loan amount.
- Mortgage insurance or upfront premiums when applicable:
- FHA loans include an upfront mortgage insurance premium that is around 1.75% of the loan amount. Many buyers finance this into the loan.
- VA loans include a funding fee that varies by service history and down payment. It can be financed, and certain veterans are exempt.
- USDA loans include an upfront guarantee fee and an annual fee.
- Conventional loans may require private mortgage insurance if the down payment is under 20%.
Title, escrow, and recording
- Lender’s title insurance policy: Usually required by the lender to protect its interest. One-time premium based on the loan amount.
- Owner’s title insurance policy: Optional but commonly recommended. In some California markets the seller often pays this, but it’s negotiable and local practices vary.
- Escrow fee: Charged by the escrow company to manage the closing and funds. Cost sharing between buyer and seller varies by negotiation and local custom.
- Recording fees: Paid to the Stanislaus County Recorder to record the deed and deed of trust.
- Documentary transfer tax: Charged at recording. Amounts and who pays can vary by county or city. Check current Stanislaus County and City of Oakdale practices during your transaction.
Prepaids and reserves
- Prepaid interest: Interest from the funding date to the first payment due date.
- Homeowner’s insurance: Often the first year’s premium is paid at or before closing.
- Property tax proration: You and the seller split the current tax period based on the closing date.
- Escrow impounds: Many lenders require reserves for future tax and insurance bills. Amounts vary by lender and loan program.
Note on California property taxes: Under Prop 13, the base property tax rate is generally about 1% of the assessed value, plus local assessments and any special taxes. When you buy, your assessed value typically resets to the purchase price. Some neighborhoods include special assessments such as Mello-Roos that can materially increase the annual tax bill.
Inspections and HOA items
- Home inspection and specialty inspections: Common in Oakdale and generally paid by the buyer. Pest or termite inspections are often required by lenders in California.
- HOA transfer and estoppel fees: If the property is in an HOA, you may see transfer or document fees. Who pays can vary by HOA rules and negotiation.
How loan type changes costs
Your loan program affects both the size and the structure of closing costs and any seller credits you can receive.
Conventional
- Most buyers fall within the 2-5% closing-cost range.
- Private mortgage insurance may apply with less than 20% down.
- Seller concessions are typically capped and depend on down payment size. Common caps are about 3% when you put less than 10% down, 6% with 10-25% down, and 9% with more than 25% down. Ask your lender for current limits.
FHA
- Includes an upfront mortgage insurance premium around 1.75% of the loan amount. It’s often financed into the loan.
- Seller concessions up to 6% of the sales price are permitted to cover closing costs, prepaids, and discount points, subject to current FHA rules.
VA
- Includes a funding fee that varies by service history and down payment. It can be financed or waived for eligible exempt veterans.
- The seller can pay certain buyer costs, subject to VA guidelines on concessions.
USDA
- Includes an upfront guarantee fee and an annual fee.
- Seller concessions are allowed within USDA limits. Confirm current allowances with your lender.
Loan program rules are updated periodically. Always confirm current percentages with your lender and review your Loan Estimate for exact fees.
Oakdale and Stanislaus specifics to check
- Property taxes and assessments: Confirm the estimated tax rate and any special taxes with the Stanislaus County Assessor and Treasurer. Mello-Roos or other district assessments can significantly impact your annual cost of ownership.
- Recording and transfer taxes: Ask your escrow officer to verify current Stanislaus County recording fees and any documentary transfer taxes that apply to your transaction.
- HOA fees: If buying in an HOA, request the HOA disclosures and fee schedule early. Transfer or document fees can add several hundred dollars to closing.
- Title and escrow providers: Premiums and service fees can vary. You can compare quotes and fee sheets.
When you’ll see the numbers
- Loan Estimate: Your lender must send this within 3 business days of your loan application. It outlines estimated closing costs and your projected cash to close.
- Closing Disclosure: You must receive this at least 3 business days before consummation. It lists your final costs and the exact amount to bring to closing.
- Day of signing and funding: You will bring a wire or cashier’s check for your cash to close. Always verify wire instructions directly with your escrow officer using a known phone number. After funding, the deed and deed of trust are recorded with the county.
How seller credits work
Seller-paid closing costs, often called seller concessions, are negotiated in your purchase contract. Within your loan program’s limits, these credits can reduce the amount you need to bring to closing by covering allowable buyer costs like lender fees, title and escrow charges, prepaids, and discount points.
A few key rules apply:
- Credits must follow loan-program caps. If credits exceed the cap, the price may need to be adjusted or funds reallocated.
- Credits cannot be used to meet minimum down payment requirements.
- Lenders consider credits during appraisal review to ensure the sale price reflects market value.
Sample Oakdale buyer budgets
Here are simple illustrations to help you frame expectations. Your numbers will vary based on the loan, rate, timing, and title/escrow selections.
- $400,000 purchase price: Closing costs roughly $8,000 to $20,000, excluding the down payment.
- $700,000 purchase price: Closing costs roughly $14,000 to $35,000, excluding the down payment.
If you’re using FHA, VA, or USDA, include the appropriate upfront premium or fee in your planning, noting that some programs allow you to finance part of the cost into the loan.
Ways to reduce your cash to close
- Compare lenders: Request Loan Estimates from at least two or three lenders. Review interest rate, points, and all lender fees side by side.
- Ask for seller concessions: If the market and loan program allow, negotiate a credit toward closing costs. Make sure it fits within your program’s cap.
- Shop title and escrow: Ask for full fee breakdowns. Premiums and escrow fees can vary by company.
- Review prepaids early: The timing of your closing can affect prepaid interest and the number of months collected for tax and insurance reserves. Ask your lender how timing may impact your cash to close.
- Confirm who pays the owner’s title policy: In many California markets the seller often pays, but it’s negotiable. Clarify this in your offer.
Quick Oakdale buyer checklist
- Get preapproved and request a Loan Estimate within 3 business days of application.
- Review the preliminary title report and HOA documents for special assessments and transfer fees.
- Confirm recording and any documentary transfer taxes with escrow.
- Compare title and escrow fee quotes.
- If needed, negotiate seller credits within loan-program limits.
- Review your Closing Disclosure at least 3 business days before signing.
- Verify wire instructions by phone using a known number before sending any funds.
Ready to plan your numbers?
Closing costs don’t have to be a surprise. With the right plan, you can estimate your cash to close, negotiate credits, and avoid last-minute stress. If you want a clear, local walkthrough tailored to your Oakdale purchase, reach out to Lisa Vandermeer to talk strategy and next steps.
FAQs
Do closing costs include my down payment?
- No. Closing costs are separate fees and prepaids due at closing. Your down payment is a distinct amount applied to your purchase price.
Can a seller in Oakdale pay my closing costs?
- Yes. Seller concessions are common and can cover allowable buyer costs, subject to loan-program caps. Your lender will confirm the maximum credit allowed.
When will I know my exact closing costs for an Oakdale home?
- Your Loan Estimate arrives within 3 business days of application with estimates. Your Closing Disclosure, delivered at least 3 business days before closing, shows final numbers.
What property taxes should I expect after buying in Stanislaus County?
- Under Prop 13 the base rate is generally about 1% of assessed value plus local assessments. Your assessed value typically resets to the purchase price, and special taxes like Mello-Roos may apply.
Are documentary transfer taxes large in Stanislaus County?
- Amounts vary by jurisdiction and can change. Ask your escrow officer to confirm current Stanislaus County and City of Oakdale transfer taxes and recording fees for your transaction.
What inspections are typical for Oakdale buyers?
- A general home inspection is standard, and pest or termite inspections are often required by lenders in California. Specialty inspections may be added based on property features.
