Buying in Encino and wondering what your closing costs really look like? You are not alone. Between lender fees, title and escrow, and prepaids for taxes and insurance, it can be hard to know what to budget. This guide breaks it down in plain language so you can make decisions with confidence and avoid surprises. Let’s dive in.
What are closing costs?
Closing costs are the one-time expenses you pay at settlement, separate from your down payment. In California, buyers typically spend about 2% to 5% of the purchase price on these costs. Your total will depend on your loan, property type, price point, and the exact terms of your purchase agreement.
Encino customs: who pays what
In Southern California, it is common for the seller to pay for the owner’s title insurance policy. You typically pay for the lender’s title insurance policy and roughly half of the escrow fee. Recording fees are usually a buyer cost, while the documentary transfer tax is often a seller cost. All of these are negotiable, so confirm the allocation in your contract.
Encino homes can fall under the City of Los Angeles or unincorporated Los Angeles County. That affects municipal transfer tax rules and local assessments. Always verify the property’s exact jurisdiction during escrow.
Cost breakdown: what you will pay
Lender fees
These include origination, processing, and underwriting, plus the credit report and any optional points to buy down your rate. Expect about 0.5% to 1% of your loan amount for origination and processing, with some items charged as flat fees. Credit reports usually run about 25 to 50 dollars. If you choose to pay points, one point equals 1% of the loan amount.
Appraisal and inspections
Your lender will order an appraisal, typically 500 to 900 dollars in the Los Angeles area, depending on size and complexity. Plan for a general home inspection at 350 to 700 dollars and a termite or pest inspection at 100 to 300 dollars. Older or more complex properties may need roof, sewer, pool, or other specialty inspections that add several hundred dollars each.
Title and escrow
Title services clear the title and issue insurance policies. Escrow coordinates the transaction and holds funds. In Encino, you commonly pay the lender’s title insurance premium and half of escrow, while the seller often pays for the owner’s policy. Escrow fees often range from 1,000 to 3,000 dollars or more based on price. Title insurance premiums scale with purchase price and loan amount.
Recording, transfer, and prorations
You will pay county recording fees for documents, usually a few hundred dollars depending on how much is recorded. Transfer taxes are often a seller cost in Los Angeles area transactions, though this is negotiable. Property taxes and some utilities are prorated between you and the seller based on the closing date.
Prepaids and impounds
Your lender may require an escrow, also called an impound account, for taxes and insurance. Plan to deposit about two to six months of property taxes and insurance at closing as a reserve. The first year of homeowners insurance is often paid upfront, commonly 700 to 2,000 dollars or more depending on coverage. You will also pay prepaid interest from your closing date to the end of the month, which can be several hundred to a few thousand dollars.
HOA and community fees
For condos or homes in an association, budget for transfer or estoppel fees, often 100 to 500 dollars or more, and prorated HOA dues. Some communities charge move-in or capital contribution fees. Review the HOA documents early so you know the exact amounts.
Example budgets for Encino purchases
These estimates are for planning only. Your Loan Estimate and title or escrow quote will provide the most accurate figures for your situation.
Scenario A: 600,000 dollar condo
- Estimated total buyer closing costs at 2% to 4%: 12,000 to 24,000 dollars
- Lender fees and processing: 3,000 to 6,000 dollars
- Appraisal: 500 to 700 dollars
- Inspections: 400 to 900 dollars
- Lender’s title, half escrow, recording: 2,000 to 5,000 dollars
- Prepaids and impounds: 3,000 to 7,000 dollars
- HOA items: 200 to 1,000 dollars
Scenario B: 1,200,000 dollar single family
- Estimated total buyer closing costs at 2.5% to 4.5%: 30,000 to 54,000 dollars
- Lender fees and points if any: 6,000 to 12,000 dollars
- Appraisal: 600 to 900 dollars
- Inspections: 500 to 1,200 dollars
- Lender’s title, half escrow, recording: 3,000 to 7,000 dollars or more
- Prepaids and impounds: 8,000 to 20,000 dollars
Scenario C: 2,500,000 dollar higher-end home
- Estimated total buyer closing costs at 2% to 4%: 50,000 to 100,000 dollars
- Note: title premiums and escrow fees scale with price, and the seller’s payment of the owner’s policy can reduce your out-of-pocket.
Property taxes: what to expect
In Los Angeles County, plan for an annual property tax burden of about 1.1% to 1.25% of the purchase price. The 1% Proposition 13 base is standard, with local bonds and assessments added on top. If your loan includes an impound account, a portion of this annual amount will be collected at closing to fund the reserve.
Smart negotiation tips
- Ask for a seller credit to offset your closing costs if the market allows, subject to loan program limits.
- Confirm who pays title insurance, escrow splits, and transfer taxes in the contract before removing contingencies.
- In competitive situations sellers may push more costs to buyers. In a slower market you may secure credits that cover a large portion of your costs.
Your closing cost checklist
- Apply for your loan and review the Loan Estimate within 3 business days.
- After your offer is accepted, request a written title and escrow fee quote.
- If the property has an HOA, request the association’s transfer or estoppel fee and dues proration details.
- Schedule inspections early and budget for any needed specialty inspections.
- Confirm whether you must fund an escrow or impound account, and how many months of taxes and insurance are required.
- Review your Closing Disclosure at least 3 business days before signing.
- Verify the property’s jurisdiction to understand any municipal transfer tax and special assessments.
Items that surprise buyers
- Initial tax and insurance reserves for the impound account.
- Prepaid interest from your closing date to month end.
- First year homeowners insurance due at closing.
- HOA move-in, transfer, or capital contribution fees.
- Lender’s title insurance premium when the seller pays only the owner’s policy.
How to get exact numbers
- Ask your lender for an updated Loan Estimate any time your rate locks or your terms change.
- Request a written fee quote from the title and escrow company for title insurance, escrow services, and recording.
- Contact the HOA for transfer or move-in fees and a dues statement.
- Use Los Angeles County and City resources to confirm recording costs, transfer tax rules, and the property tax calendar.
Final thoughts
If you budget 2% to 5% of the price for buyer closing costs in Encino, you will be in a solid planning range. The exact figure depends on your loan, property type, and the way fees are split in your contract. Get written estimates early, keep an eye on prepaids and impounds, and use credits where possible to reduce cash to close.
If you want a calm, step-by-step path from offer to keys, connect with our team for tailored guidance. Start with a quick call, and we will map your costs, timeline, and strategy together with white-glove care. Reach out to Angelo Fierro to get started.
FAQs
How much are buyer closing costs in Encino?
- Plan for about 2% to 5% of the purchase price for buyer-paid closing costs, which include lender fees, third-party fees, and prepaids.
Who pays title insurance in Encino purchases?
- It is common for the seller to pay the owner’s title insurance policy, while you pay the lender’s title policy and roughly half of the escrow fee, subject to negotiation.
Are there Los Angeles transfer taxes when buying?
- The seller often pays the documentary transfer tax in Los Angeles area deals, but this is negotiable and can vary by jurisdiction and contract.
What should I budget for property taxes in Los Angeles County?
- Expect about 1.1% to 1.25% of the purchase price per year, which covers the 1% base under Proposition 13 plus local assessments.
When is my first mortgage payment due after closing?
- You usually prepay interest from closing to month end, then your first full mortgage payment is due the following month or the month after, depending on your closing date and lender setup.
