Are you budgeting for a Danville home and wondering how much cash you’ll need beyond the down payment? You’re not alone. Closing costs can surprise buyers because they include lender fees, title and escrow services, government charges, and several prepaid items. In this guide, you’ll learn the typical 2%–5% range, what’s unique in Contra Costa County, and how to estimate your cash to close with clear examples. Let’s dive in.
What closing costs cover
Closing costs include four main buckets: lender and loan fees, title and escrow services, government fees and taxes, and prepaid items like insurance and initial property tax escrow. Some costs are flat fees and others scale with price or loan amount. Many items are negotiable, and your final allocation depends on your contract and local custom. Your lender and title company will give you itemized estimates early so you can plan with confidence.
How much to budget
A practical rule of thumb is to budget 2%–5% of the purchase price for buyer closing costs, including prepaid items. In Danville and the broader Bay Area, many buyers find 3%–4% to be a realistic planning number because property tax and insurance dollars are larger. Your actual number will vary based on your loan type, rate options, escrow reserves, and any seller credits.
Danville and Contra Costa nuances
You will see standard county and state charges in Contra Costa. The common state documentary transfer tax rate in many jurisdictions equals about $1.10 per $1,000 of price, and county recording fees apply. The Town of Danville typically does not have a separate city transfer tax, which helps keep this line item lower than in nearby cities that do. Always verify current county rates and any local assessments with your escrow officer because fee schedules can change.
Typical buyer cost breakdown
Lender and loan fees
- Origination or administrative fee, underwriting, and processing often total about 0.5%–1.0% of the loan amount. Some lenders use flat fees or offer lender credits in exchange for a higher rate.
- Appraisal typically ranges from about $600 to $1,200 or more depending on property complexity.
- Smaller charges can include credit report, flood certification, and tax service fees. These are usually modest.
- If your loan requires mortgage insurance, your lender may collect the first month at closing or set an escrow cushion.
Title and escrow
- Title insurance includes a lender policy and an optional but recommended owner’s policy. Premiums are regulated in California and scale with price and loan amount.
- Escrow fees cover the neutral third party that manages funds and documents. In California, these are often split by local custom, but your purchase agreement controls who pays what.
- Recording and document fees are modest compared to other items and depend on the number of documents.
Government fees and taxes
- Documentary transfer tax is commonly calculated at about $1.10 per $1,000 of price in many California jurisdictions. Danville generally does not add a city transfer tax, but you should confirm for your specific property.
- Property tax proration reimburses the seller for any property taxes they prepaid that cover a period after your closing date.
Prepaid items
- Homeowners insurance is often paid for the first year at closing. Budget several hundred dollars to a few thousand depending on coverage.
- Initial property tax escrow usually ranges from 2 to 6 months of taxes, depending on your lender and time of year.
- Prepaid interest covers the period from funding to the first payment date.
- HOA-related costs can include transfer fees and prepaid dues if applicable.
Inspections and other costs
- General home inspection, pest, roof, sewer, or septic inspections are common. Plan for about $400 to $1,000 or more depending on scope.
- HOA document or estoppel fees and natural hazard disclosure reports may apply. Amounts vary by property and HOA.
Worked examples by price point
The examples below use the same assumptions to keep things simple: 20% down conventional loan, lender fees at 1.0% of the loan amount, title and escrow based on typical local ranges, 3 months of property tax escrow using a 1.1% combined tax rate estimate, first year homeowners insurance paid at closing, and no seller or lender credits. Your Loan Estimate, title quote, and insurance and HOA figures will refine these numbers.
Example A: $800,000 purchase
- Down payment (20%): $160,000
- Loan amount: $640,000
- Lender fees (1.0%): $6,400
- Appraisal and other lender charges: $1,000
- Title, escrow, and recording: $2,500
- Title policies (owner and lender): $1,500
- Homeowners insurance (1 year): $1,200
- Property tax escrow and proration (1.1% annual; 3 months): $2,200
- Prepaid interest (example): $600
Estimated buyer closing costs (excluding down payment): about $16,000–$18,000 (roughly 2.0%–2.25% of price). Estimated cash to close: approximately $176,000–$178,000.
Example B: $1,500,000 purchase
- Down payment (20%): $300,000
- Loan amount: $1,200,000
- Lender fees (1.0%): $12,000
- Appraisal and other lender charges: $1,200
- Title, escrow, and recording: $3,500
- Title policies (combined): $3,000
- Homeowners insurance (1 year): $1,800
- Property tax escrow and proration (1.1% annual; 3 months): $4,125
- Prepaid interest: $1,200
Estimated buyer closing costs (excluding down payment): about $27,000–$30,000 (around 1.8%–2.0% of price). Estimated cash to close: approximately $327,000–$330,000.
Example C: $3,000,000 purchase
- Down payment (20%): $600,000
- Loan amount: $2,400,000
- Lender fees (1.0%): $24,000
- Appraisal and other lender charges: $1,500
- Title, escrow, and recording: $5,000+
- Title policies (combined): $6,000+
- Homeowners insurance (1 year): $2,500–$4,000
- Property tax escrow and proration (1.1% annual; 3 months): $8,250
- Prepaid interest: $2,000+
Estimated buyer closing costs (excluding down payment): about $50,000–$90,000 (roughly 1.7%–3.0% of price). Estimated cash to close: approximately $650,000–$690,000.
Budgeting tips that work
- Use your lender’s Loan Estimate, which must arrive within three business days of your application, to see itemized loan costs and prepaids.
- Ask your title or escrow officer for a preliminary quote for title insurance, escrow, recording, and documentary transfer tax.
- Estimate property taxes by multiplying price by about 1.1% for Contra Costa, then set aside 2–4 months of that amount for initial escrow.
- Build in a cushion for inspections, HOA transfer costs, and prepaid interest based on your target closing date.
Simple cash-to-close checklist
- Gather your target purchase price and down payment percentage.
- Request a preliminary Loan Estimate from your lender.
- Get a title and escrow fee quote with estimated recording and documentary transfer tax.
- Estimate property taxes at about 1.1% of price and budget 2–4 months for escrow.
- Add first year homeowners insurance and any HOA-related fees or dues.
- Include prepaid interest based on your planned closing date.
- Sum lender fees + title/escrow/recording + government taxes + prepaids + inspections/HOA to get closing costs. Add your down payment for total cash to close.
Ways to reduce cash to close
- Negotiate seller credits toward closing costs as part of your offer.
- Compare lenders for lower origination charges or for lender credits in exchange for a slightly higher rate.
- Time your closing date to reduce prepaid interest or minimize the months of tax escrow when possible.
- Review optional items like an owner’s title policy. Many buyers choose to keep it for protection, but it is technically optional.
Timing and documents
Your lender must provide a Loan Estimate within three business days of application so you can compare offers. At least three business days before closing, you will receive a Closing Disclosure with your final numbers. Title and escrow will also provide a preliminary settlement statement to help you review what you will wire for closing.
Final thoughts and next steps
Closing costs in Danville usually land in the 2%–5% range, with many buyers planning around 3%–4% because of higher local tax and insurance dollars. The exact figure depends on your loan, credits, and timing, but you can dial it in early with a Loan Estimate and a title quote. If you want a tailored breakdown for your price point and neighborhood, reach out for local guidance and negotiation strategies.
Have questions or want a custom estimate for your situation? Connect with Linda Ngo for buyer representation, a clear cash-to-close plan, and a smooth East Bay purchase.
FAQs
What are typical buyer closing costs in Danville?
- Most buyers should plan for about 2%–5% of the purchase price, with many local buyers finding 3%–4% practical due to higher property tax and insurance dollars.
Who pays which closing fees in California home purchases?
- Many fees are negotiable; escrow and title fees are often split by local custom, but your contract controls the final allocation between buyer and seller.
Does Danville charge a city transfer tax on home sales?
- Danville generally does not impose a separate city transfer tax, though county and state documentary transfer tax and recording fees still apply.
When will I know my final cash to close in Contra Costa?
- You will receive a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing.
Can I roll buyer closing costs into my mortgage in California?
- Some lender charges can be financed or offset with lender credits, but prepaid items like property taxes and homeowners insurance usually must be paid at closing.
How can I lower my cash to close for a Danville purchase?
- Negotiate seller credits, compare lenders for lower fees or credits, and time your closing to reduce prepaid interest or the number of escrowed tax months when possible.
