Closing day should not come with surprise numbers. If you are buying in Novato, the cash you bring to close includes more than your down payment, and that can feel confusing. You want a clear, local picture of what these costs are, how much to budget, and which items you can negotiate. In this guide, you will learn exactly what shows up on a Novato buyer’s settlement statement, typical ranges, Marin‑specific customs, and smart next steps so you can plan with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees, prepaid items, and prorations needed to transfer ownership and fund your loan. They are separate from your down payment. Some items are buyer costs, some are seller costs, and some are split by local custom or negotiation.
Common buyer line items include:
- Loan fees if you finance: origination or underwriting, application, and processing.
- Discount points if you choose to buy down your rate.
- Appraisal and credit report fees.
- Lender’s title insurance policy, required by most lenders.
- Escrow or settlement fees, often split with the seller by local custom.
- Title search and related administrative items.
- Recording fees for the deed and mortgage documents.
- Property taxes, including prorations and any lender impound deposits.
- Homeowner’s insurance, usually the first year premium or proof of a binder plus any escrow deposit.
- HOA transfer or document fees and prorated dues, if the property is in an HOA.
- Inspections such as home, pest or termite, sewer, or septic, plus any agreed repairs.
- Prepaid interest from funding to your first mortgage payment.
- Miscellaneous items like flood certification, courier, and notary.
Common seller line items include real estate broker commissions, owner’s title insurance in many Northern California transactions, a share of escrow fees, transfer taxes if applicable, lien and mortgage payoffs, tax and HOA prorations, and recording fees for releases.
How much to budget in Novato
A useful rule of thumb for buyers is 2 to 5 percent of the purchase price for closing costs, not counting your down payment. Sellers often see 1 to 3 percent in closing costs before commissions. When you add commissions, total seller costs often land near 6 to 9 percent in many California sales.
Here are two Novato examples to set expectations:
- $800,000 purchase
- Buyer closing costs at 2 to 4 percent, about $16,000 to $32,000
- Typical breakdown: lender fees and appraisal $2,000 to $6,000; title and escrow $1,500 to $4,000; prepaids and impounds $5,000 to $15,000; inspections and misc. $500 to $2,000
- $1,500,000 purchase
- Buyer closing costs at 2 to 4 percent, about $30,000 to $60,000
These are planning ranges. Your lender choice, interest rate strategy, loan program, and who pays certain title or escrow items will move the final number up or down.
Why amounts vary
Several factors drive the wide range:
- Loan program and lender pricing, including whether you buy discount points.
- Title and escrow customs, such as who pays for the owner’s title policy and how settlement fees are split.
- The timing of property tax cycles and whether your lender requires impounds.
- Price tier, since some fees scale with the purchase price.
Marin County timing and customs
Property tax schedule and proration
California secured property taxes follow a standard timeline. Payments are due in November and February, and become delinquent in December and April. In Marin, escrow prorates taxes based on the closing date and this schedule, so you may credit or reimburse the seller for a share of a period that overlaps your closing. You can review timing and payment details with the Marin County Treasurer‑Tax Collector.
Title, escrow, and who pays what
In much of Northern California, including Marin County, it is customary for the seller to pay for the owner’s title insurance policy. The buyer typically pays for the lender’s title policy. Escrow fees are often split 50/50, but all of this is negotiable and should be confirmed with your chosen title and escrow company.
Transfer taxes and recording
California documentary transfer tax rules apply, and some cities and counties have their own additional transfer taxes. The County Recorder assesses recording fees for the deed and mortgage, which are usually modest per document. For local guidance and current practices, consult the Marin County Assessor‑Recorder and the County Recorder’s resources linked there.
HOA and inspection notes
If you buy in a condo or HOA community, expect prorated dues and a resale or document packet. HOA document and transfer fees can be several hundred dollars, and the seller often covers the resale packet by local custom. For many Marin homes, pest or termite inspections are common and repair responsibilities are negotiated in the purchase contract.
Estimate your cash to close
You can get reliable numbers early if you ask the right parties for the right documents.
- Request a Loan Estimate from your lender. Federal rules require lenders to provide this within three business days of your application. It outlines your interest rate, loan costs, and estimated cash to close. The CFPB’s Loan Estimate guide explains what to look for.
- Ask a Marin title and escrow company for a preliminary settlement estimate. Provide the price and your lender info so they can include title, escrow, recording, and typical prepaids.
- Verify property tax parcel details and any special assessments with county offices to anticipate prorations. Start with the Marin County Assessor‑Recorder and the Treasurer‑Tax Collector.
- Before closing, compare your Loan Estimate to the Closing Disclosure. Lenders must deliver the Closing Disclosure at least three business days before closing for most consumer mortgages. The CFPB’s Closing Disclosure overview shows where to check final costs.
Using seller credits
You can request a seller credit toward your closing costs in your purchase offer. Whether a seller agrees depends on the market and the terms you present. Different loan programs cap seller credits at different levels, so always confirm limits with your lender. For example, conventional loan limits vary by down payment, FHA often allows up to 6 percent in many situations, and VA has its own rules.
Example: $800,000 Novato purchase
Here is a simplified buyer worksheet using local planning ranges. Your actual numbers will come from your lender and title company.
- Lender fees and appraisal: $2,000 to $6,000
- Title and escrow, buyer share: $1,500 to $4,000
- Prepaid taxes, insurance, and impounds: $5,000 to $15,000
- Inspections and miscellaneous: $500 to $2,000
- Estimated total closing costs: $16,000 to $32,000
The largest variable here is often prepaids and impounds. Many lenders require a tax and insurance escrow, which can add several months of property taxes and insurance premiums to your cash to close.
Next steps for Novato buyers
- Budget 2 to 5 percent of the price for buyer closing costs until you have quotes.
- Get your Loan Estimate early and review it line by line.
- Ask a Marin title and escrow company for a settlement estimate based on your price and lender.
- Verify property tax timing and any special assessments before you remove contingencies.
- If the home is in an HOA, request the resale packet early to understand transfer fees and dues.
When you want local guidance from offer to closing, reach out to a trusted advisor who knows Marin’s customs and escrow practices. If you have questions or want a line‑by‑line review for your Novato purchase, connect with Greg Corvi for clear, local advice.
FAQs
What are closing costs for Novato homebuyers?
- Closing costs are the fees, prepaids, and prorations needed to transfer ownership and fund your mortgage, separate from your down payment, and they typically include lender charges, title and escrow, taxes, insurance, and inspections.
How much should I budget for closing costs in Novato?
- A practical planning range is 2 to 5 percent of the purchase price for buyers, which covers lender fees, title and escrow, prepaids for taxes and insurance, and inspections.
Who usually pays the owner’s title policy in Marin County?
- By local custom in much of Northern California, the seller often pays for the owner’s title policy and the buyer pays for the lender’s policy, but this is negotiable and should be confirmed with your escrow company.
When are Marin County property taxes due and why does that matter at closing?
- California secured property taxes are due in November and February, and delinquent in December and April, and escrow prorates taxes at closing based on this schedule and your closing date.
Can I ask the seller to cover some of my closing costs in Novato?
- Yes, you can request a seller credit in your offer, and your lender can confirm how much is allowed by your loan program since limits vary for conventional, FHA, and VA loans.
How do I get an accurate estimate before I make an offer?
- Request a Loan Estimate from your lender, ask a Marin title and escrow company for a settlement estimate, and verify tax and HOA figures so you can forecast your exact cash to close before removing contingencies.
