San Francisco Buyer Closing Costs, Line by Line

Staring at a closing disclosure and wondering where all those numbers come from? You are not alone. In San Francisco, closing costs can feel bigger and more complex because several fees scale with price and loan size. This guide shows you every line item buyers see at closing, who usually pays it, and how to budget with confidence in our market. You will also get a simple checklist to request the right documents so there are no surprises. Let’s dive in.

What to expect in San Francisco

Buyer closing costs in California typically run about 2% to 5% of the purchase price when you use a mortgage. That range does not include your down payment. In San Francisco, absolute dollar amounts can be higher because title premiums, recording fees, transfer taxes in some transactions, prepaid interest, and escrow reserves often scale with price.

Cash buyers skip lender fees, mortgage-related title premiums, and some recording charges. You will still pay escrow, recording, and prepaids like property taxes and insurance. Some transfer taxes may still apply depending on local rules and your contract.

Federal timing rules protect you. Your lender must send a Loan Estimate within 3 business days of application, then a Closing Disclosure at least 3 business days before closing. These two documents are the most reliable sources for your final cash to close.

Line by line: your closing costs

Lender-related fees

• Origination or lender processing fee. The lender’s charge to create and process your loan. You pay this, although you can sometimes negotiate or use a lender credit. On jumbo loans, the dollar amount is often higher.
• Underwriting, application, and processing fees. Administrative charges for credit checks and file review. These are usually smaller flat fees paid by you.
• Discount points. Optional prepaid interest to buy down your rate. One point equals 1% of the loan amount. This is a major lever if you want to trade cash now for a lower monthly payment.
• Appraisal fee. Required by most lenders. San Francisco appraisals can be higher in cost, especially for complex, multi-unit, or jumbo properties. You pay this.
• Other small lender charges. Items like credit reports, flood certifications, and tax transcripts. These are minor but paid by you.

Title and escrow

• Lender’s title insurance. Protects the lender. In California the buyer typically pays this loan policy. It follows a rate schedule, so it increases with larger loan amounts.
• Owner’s title insurance. Protects your ownership interest. In California it is customary for the seller to pay this, but it is negotiable in San Francisco. Confirm the allocation in your purchase contract.
• Escrow or settlement fee. Paid to the escrow company that manages funds, documents, and recording. In San Francisco it is common to split this, but it can be negotiated and varies by company. Fees often increase in tiers with higher prices.
• Title endorsements and title search. Charges for researching public records and issuing the title commitment. Buyers usually pay lender-required endorsements. Complex properties may require additional endorsements.

Recording, taxes, and municipal charges

• County recording fees. Paid to the County Recorder for the deed and mortgage documents. Buyers typically pay to record loan-related items. These are relatively small but can add up.
• Documentary transfer tax. San Francisco has a municipal transfer tax schedule that can be substantial at higher prices and in certain transfers. Who pays depends on local custom and your contract. Even if sellers often pay, negotiated allocations or special cases can shift this cost. Confirm with your title company and the San Francisco Treasurer and Assessor-Recorder early.
• City or special surcharges. Certain transactions can involve local fees. Your escrow officer will flag anything applicable to your deal.

Prepaids and escrow reserves

• Prepaid interest. Interest from your closing date to your first payment. The amount depends on your rate and the number of days.
• Property taxes. Taxes are prorated between buyer and seller at closing. Your lender may also collect 2 to 6 months of tax reserves to seed your escrow account, depending on loan program and billing cycles. In San Francisco, high assessed values mean larger dollar amounts.
• Homeowner’s insurance. Lenders usually require the first year’s premium at closing and may also collect reserves.
• HOA dues and assessments. Association dues and any special assessments are prorated. Some San Francisco HOAs charge transfer fees. Amounts vary by building and association.

Program or loan-specific charges

• FHA loans. Expect an Upfront Mortgage Insurance Premium. FHA’s UFMIP is typically 1.75% of the base loan amount, which can often be financed into the loan.
• VA loans. A funding fee applies unless you are exempt. The percentage varies by down payment, service category, and prior VA usage. It can usually be financed.
• Conventional loans with PMI. If you put less than 20% down, you may have private mortgage insurance. This can be monthly, upfront, or both, depending on the product.
• Jumbo loans. Larger loans can come with higher lender pricing, bigger appraisal requirements, and stricter documentation. These factors can increase cash to close.

How costs change by price and loan type

By price point

• Low to midrange purchases. Title and escrow fees are smaller in absolute dollars than luxury deals, but still meaningful. Prepaids like taxes are lower in dollars, yet similar in proportion. Depending on market conditions, seller credits may offset some costs.
• High and luxury properties. Title and escrow fees rise with price. San Francisco’s municipal transfer tax can become a major expense at higher brackets. Jumbo loans often bring larger appraisal and underwriting requirements that increase cash to close.

By loan type

• Conventional. Expect appraisal, lender origination, lender’s title policy, prepaid interest, and escrow reserves for taxes and insurance. PMI may apply with less than 20% down.
• Jumbo. Pricing can include points, more extensive appraisal work, and stricter documentation. Lenders may require larger escrow reserves and more on-hand borrower reserves.
• FHA. UFMIP and annual mortgage insurance apply. UFMIP can be financed, which reduces cash due but raises the loan amount.
• VA. A funding fee often applies and can be financed. VA appraisals have specific standards and lenders will still require a lender’s title policy and certain endorsements.
• Cash purchases. You avoid mortgage-related fees and MI charges, but you still pay escrow, recording, prepaids, and any transfer tax or HOA fees per the contract. Owner’s title insurance is often paid by the seller in California, but confirm in writing.

Your budgeting framework

Use your Loan Estimate and Closing Disclosure

• The Loan Estimate arrives within 3 business days of application. Use it for your initial budget and ask your lender to walk you through each line.
• The Closing Disclosure must arrive at least 3 business days before closing. Treat this as your authoritative cash to close. Any change may require re-disclosure and could delay closing.

Request these documents early

• From your agent: the signed purchase contract showing who pays which fees and any seller credits.
• From your lender: your Loan Estimate, full breakdown of lender fees and points, estimated prepaids and required reserves, and details on PMI, UFMIP, or the VA funding fee if applicable.
• From title and escrow: the title commitment, an estimated closing statement, escrow instructions, estimated title premiums for both loan and owner’s policies, and a transfer tax estimate if applicable.
• From the city and county: confirmation of transfer tax rules for your transaction type with the San Francisco Treasurer and Assessor-Recorder.
• From the HOA: dues prorations, any transfer fees, and any special assessment history.

Negotiation levers to consider

• Seller credits. You can request credits to cover part or all of your closing costs. Loan programs cap these credits, so check the limits.
• Rate and points. Decide whether you want a lower payment by paying points now or a higher rate with less cash up front. Review your break-even timeline.
• Lender shopping. Compare multiple Loan Estimates. Evaluate the total package: rate, points, and any lender credit.
• Title and escrow selection. You can negotiate which company handles your file. Request itemized estimates and compare pricing and service.
• Timing. Build in enough time for the Closing Disclosure requirement. Rushed files can trigger courier or rush fees.

Simple steps to build your budget

• Step 1: Get your Loan Estimate and request a written estimate from title and escrow for your price point.
• Step 2: Add your down payment, lender fees, title and escrow charges, prepaids and required reserves, prorations, and any HOA or city transfer taxes.
• Step 3: Add a contingency of 1% to 2% of the purchase price for changes, program limits on credits, or unexpected items.
• Step 4: Confirm your Closing Disclosure at least 3 business days before closing and prepare your wire per escrow instructions.

Final thought

The key to a smooth San Francisco closing is simple: confirm each cost in writing and build your budget around the Loan Estimate and Closing Disclosure. When you understand the line items, you can negotiate smarter, plan your cash to close, and avoid last-minute stress.

If you want a calm, strategic partner to help you model scenarios and negotiate credits, the Hanji & McAllister Group is here to help. Request a Complimentary Market Consultation and Valuation and get a clear plan for your next move.

FAQs

Who usually pays San Francisco transfer tax?

• It depends on local custom and your contract. San Francisco has a municipal transfer tax that can be significant at higher prices. Confirm the allocation with title and the city early in the process.

Will the seller pay for my owner’s title insurance?

• In California it is customary for the seller to pay the owner’s policy. This is negotiable, so confirm the allocation in your purchase contract and title commitment.

How many months of tax and insurance reserves will my lender collect?

• Many lenders collect 2 to 6 months depending on the loan program and billing cycles. Your Loan Estimate will show the exact amounts for your file.

Are HOA transfer fees common in San Francisco condos?

• They vary by association. Some charge modest transfer fees and others charge several hundred dollars. Review HOA documents and ask early.

When will I receive my Loan Estimate and Closing Disclosure?

• Your lender must send the Loan Estimate within 3 business days of application and the Closing Disclosure at least 3 business days before closing. Use these to verify cash to close.

Do cash buyers have closing costs too?

• Yes. Cash buyers avoid lender fees and mortgage-related title premiums, but still pay escrow, recording, prepaids like taxes and insurance, and any transfer taxes or HOA fees per the contract.