Buying in Pasadena and wondering why your “cash to close” looks bigger than your down payment? You are not alone. Closing costs bundle several services, taxes, and prepaid items that show up near the finish line. In this guide, you will learn what buyers typically pay in Pasadena and the greater Los Angeles area, realistic local ranges, what is negotiable, and how to confirm your exact numbers before you sign. Let’s dive in.
What closing costs cover in Pasadena
Escrow and title
Escrow is the neutral third party that holds funds and paperwork and coordinates your closing. Title insurance protects against certain title defects, with a lender’s policy required when you finance. In many California deals, sellers pay the owner’s title policy, while buyers pay the lender’s policy, but this is negotiated in the contract.
- Typical escrow fee: about $1,000 to $3,000 depending on price and complexity.
- Lender’s title policy: often about $1,000 to several thousand dollars, based on loan amount and published rate tables.
Lender and loan fees
These cover the cost of originating and processing your loan. You may see an origination fee or points, plus underwriting and third-party fees required by the lender.
- Origination or points: often 0% to 1% of the loan amount, with optional discount points if you choose to buy down your rate.
- Appraisal: typically about $450 to $900, higher for complex or high-value homes.
- Credit report and other third-party verifications: often a few hundred dollars total.
Prepaid items and escrow reserves
Prepaids are not fees. They are upfront funding for items that recur, such as interest, insurance, and property taxes. If your loan includes an escrow account, your lender will also collect reserves to seed that account.
- Prepaid interest: depends on closing date and your first payment date, often 1 to 2 months of interest.
- Homeowners insurance: first-year premium commonly $800 to $2,500 or more depending on coverage.
- Escrow reserves: lenders often collect several months of taxes and insurance to fund the escrow account.
Government and recording charges
Expect county recording fees for your deed and loan documents. Depending on the property’s city, documentary transfer taxes may apply and are usually calculated by the title company.
- Recording fees: typically tens to a few hundred dollars based on document count and county schedule.
- Transfer taxes: vary by city and county policy. Confirm whether the specific city for your purchase imposes an additional city transfer tax.
Inspections and reports
Beyond the lender’s appraisal, buyers often order their own property inspections to understand condition and costs.
- General home inspection: typically $300 to $700.
- Pest inspection: often $75 to $250.
- Specialty inspections: sewer, roof, chimney, pool, or others as needed, each at additional cost.
HOA fees and related charges
If the home is in a homeowners association, there may be transfer or move-in fees, and prorated dues.
- HOA transfer or estoppel fees: commonly $150 to $400, but varies by association.
- First month’s dues or prepaid dues: equal to the monthly HOA payment.
Miscellaneous items
You may see a home warranty, termite repairs, courier and wire fees, or notary and document prep charges.
- Home warranty: often $300 to $700 if negotiated or buyer-chosen.
- Courier, wire, notary, and document fees: usually small line items, often $25 to $150 each.
How much should you budget?
A common planning rule is to budget about 2% to 5% of the purchase price for closing costs, not including your down payment. Your actual number depends on your loan type and size, timing for prepaid interest, the cost of insurance, whether the property carries special assessments, and any transfer taxes. Negotiated concessions can lower your out-of-pocket, while points to reduce your rate will increase it. Your Loan Estimate and Closing Disclosure will show your specific total.
Pasadena and LA County specifics to check
- Transfer taxes: Some cities in Los Angeles County impose their own transfer tax in addition to the county tax. Confirm whether the city tied to your property address imposes a city transfer tax and how responsibility is handled in your contract.
- Mello-Roos or special assessments: Many Southern California properties have Community Facilities District assessments. These appear on the property tax bill and in the preliminary title report, affect annual carrying costs, and may require prorations at closing.
- County recording fees: Los Angeles County sets recording charges by document type and count. Your title company will calculate these precisely.
- Local custom on title and escrow: It is common in many California transactions for sellers to pay the owner’s title policy and for buyers to pay the lender’s policy. Escrow fees are often split or assigned by contract.
Example: What an $800,000 purchase might look like
Here is an illustrative snapshot for a conventional loan with 20% down. Use it only for planning, then rely on your lender and title company for exact figures.
- Escrow and title, buyer portion including lender’s title policy: about $1,500 to $3,000.
- Lender fees, appraisal, processing and underwriting: about $2,500 to $6,000.
- Prepaids and reserves for taxes, insurance and interest: about $3,000 to $8,000 depending on timing and coverage.
- Inspections and pest: about $400 to $1,200.
- HOA or special assessments: variable based on the specific property.
- Recording and transfer taxes: variable by city and county policy.
- Total buyer cash for closing costs: could range roughly $8,000 to $32,000 in this scenario based on the items above.
What is negotiable in Pasadena deals
- Seller concessions: You can ask the seller to cover some closing costs. Your loan type and down payment set limits on total concessions.
- Owner’s title insurance: Often paid by the seller in many California transactions, but it is negotiable and must be written into the contract.
- Escrow fee allocation: Buyers and sellers can split or reassign escrow fees by agreement.
- Discount points: Decide with your lender whether to pay points at closing for a lower rate or prioritize lower upfront costs.
- Home warranty: Frequently negotiated. You can request a seller-paid plan or choose to purchase one yourself.
How to verify your numbers before you close
- Request a Loan Estimate from your lender and compare it with at least one other lender so you understand fees and points.
- Ask your chosen title or escrow company for a written fee estimate that includes the title premiums and escrow charges.
- Order your home inspection and pest inspection early so you can negotiate any repair credits or concessions.
- Confirm who pays for the owner’s title policy in your specific Pasadena contract and how escrow fees are split.
- Review the preliminary title report for Mello-Roos, special assessments, liens, or HOA details.
- Verify city and county transfer taxes and recording fees through your title officer.
- Review your Closing Disclosure at least 3 business days before signing and ask about any changes from the Loan Estimate.
Smart timing and budgeting tips
- Watch your closing date: Prepaid interest runs from the day you close to the start of your first payment, so end-of-month closings often mean fewer days of interest.
- Plan for insurance: Get quotes early. Your first-year homeowners premium is commonly paid at closing and can vary with coverage and endorsements.
- Expect escrow reserves: Many loans require a cushion for taxes and insurance. Build these reserves into your budget so they are not a surprise.
- Keep a buffer: Set aside an extra 1% to 2% of the purchase price for unexpected items or negotiated repairs that could show up before closing.
Ready to buy with confidence?
You deserve a smooth, well-managed closing that aligns with your budget and goals. With boutique, hands-on escrow management and deep micro-market expertise across Los Angeles, we help you anticipate costs, verify line items, and negotiate strategically so you can focus on the home. If you are planning a Pasadena purchase, connect with Sarah Minka Jackson for a curated search and clear guidance from offer to keys.
FAQs
When are buyer closing costs due in Pasadena?
- Most buyer closing costs are due at closing, typically via wire to escrow. Some items, like inspections or the appraisal, may be paid earlier.
How do I get an exact closing cost number for my loan?
- Your lender’s Loan Estimate provides an early breakdown, and your Closing Disclosure, delivered at least 3 business days before signing, shows the final figures.
Can the seller pay my closing costs in a Pasadena purchase?
- Yes. Seller-paid closing costs are negotiable and common, though your loan program sets limits on how much the seller can contribute.
Who usually pays the owner’s title policy in Southern California?
- It is often the seller, but that is a custom, not a rule. Your purchase contract controls who pays, so confirm with your agent and the title officer.
How do Mello-Roos or special assessments affect me as a buyer?
- These appear in the preliminary title report and on the property tax bill. They affect your annual property taxes and may be prorated at closing.