Are you wondering how much cash you’ll need to close on a home in Salinas 93901? You’re not alone. Closing costs can feel confusing, and they vary by property, lender, and timing. The good news is there’s a clear way to plan ahead, spot the biggest cost drivers, and find legal ways to reduce what you pay out of pocket. In this guide, you’ll learn what typical closing costs look like in Monterey County, how to budget using simple ranges, and where you can save. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaids you pay to finalize your purchase, separate from your down payment. They usually include lender fees, title and escrow charges, government and recording fees, inspections, and prepaid items for taxes and insurance. Your exact costs depend on your loan program, the property, and who pays which items in your purchase agreement.
A helpful rule of thumb for Salinas buyers is to budget about 2-5% of the purchase price for closing costs. You’ll refine this as you receive quotes and disclosures from your lender and escrow.
How much to budget in 93901
Plan your cash with percentage-based ranges so you can adjust as prices change:
- $400,000 purchase: approximately $8,000 to $20,000
- $700,000 purchase: approximately $14,000 to $35,000
- $1,000,000 purchase: approximately $20,000 to $50,000
These estimates include typical lender fees, title and escrow, prepaid taxes and insurance, and routine inspections. Your final numbers will come from your lender’s Loan Estimate and the escrow/title Closing Disclosure.
Common buyer cost categories
Loan and lender fees
- Origination and processing. Often 0.25% to 1.0% of the loan amount. These can be negotiated or offset with credits from the lender.
- Discount points. Optional fee to lower your rate. One point equals 1% of the loan amount. Consider only if you plan to keep the loan for a long period.
- Appraisal. In Monterey County, many single-family appraisals run about $500 to $1,000 or more depending on size and complexity.
- Credit report and admin. Modest fees that typically range from tens to low hundreds combined.
Tip: Ask for Loan Estimates from more than one lender so you can compare fees and any available lender credits.
Title and escrow
California uses escrow and title companies to manage closing and issue title insurance. You may see both a lender’s title policy and an owner’s title policy on your statements. Title premiums are based on the purchase price, and escrow fees scale with the transaction. In many California locations the seller often pays the owner’s title policy, but customs vary by area and are negotiable. The buyer usually pays the lender’s policy. Recording fees are set by the county and are typically modest per document.
Government and municipal
- Documentary transfer tax. Some counties and cities charge a transfer tax at closing. Confirm if a city or county transfer tax applies in Salinas or Monterey County and who pays it in your contract.
- Property tax proration. California’s base property tax is about 1% under Proposition 13, plus any local assessments. You’ll reimburse the seller for your share of the current tax period at closing.
Prepaid items and escrow reserves
- Homeowner’s insurance. Lenders usually require you to pay the first year’s premium at closing.
- Prepaid interest. Covers interest from your closing date until your first mortgage payment.
- Initial reserves. Many lenders collect a few months of taxes and insurance to seed your escrow account.
Timing affects these amounts. Your lender can estimate prepaids based on your target closing date.
Inspections and reports
- Home inspection. Often $300 to $800 or more depending on size and scope.
- Pest or termite inspection. Often $75 to $300 or more. Treatments or repairs add cost if required.
- Natural hazard and other disclosures. Sellers typically provide required disclosures, while buyers may order additional reports as needed.
- HOA documents and transfer. If applicable, expect HOA disclosure or transfer fees that can be a few hundred dollars.
Some Salinas and coastal-area homes may call for specialized inspections, such as drainage or foundation reviews. Discuss with your agent based on the property’s features.
One-time and miscellaneous
Expect escrow settlement fees, notary, courier or wire charges, optional home warranty, and any HOA move-in fees. Who pays for deed recording or specific items is set by the contract and local practice.
Local items to verify in Salinas
- Transfer tax. Confirm whether a Monterey County or City of Salinas transfer tax applies and who pays it per your agreement.
- Property taxes. Monterey County bills include a base tax and any district assessments or Mello-Roos. Review the current tax bill early.
- Title policy custom. In many California markets, sellers often pay the owner’s policy, but that is not universal. Confirm what is customary in Salinas and negotiate accordingly.
- Escrow timeline. A typical escrow is 30 to 45 days, though timing can be shorter or longer depending on financing and contingencies.
- HOA specifics. Ask for HOA budgets, reserves, rules, and transfer fees if you are buying a condo or in a planned community.
Ways to lower out-of-pocket costs
- Request a seller credit. You can negotiate for a seller contribution toward your closing costs in your offer.
- Ask for lender credits. Many lenders can offer credits in exchange for a slightly higher interest rate. Compare the long-term cost to the short-term savings.
- Shop lenders and escrow. Even small differences in origination, appraisal, and escrow fees can add up.
- Finance some costs. If allowed by your loan, you may roll certain costs into your mortgage. This raises your balance and interest over time.
- Look for assistance. Check state options such as CalHFA and any County or City of Salinas programs for eligible buyers.
- Plan your closing date. Prepaid interest changes with the day you close. Coordinating the date with your lender and escrow can help manage cash due.
- Trim optional extras. Only waive optional items, like a home warranty, after weighing the risks and benefits.
Your step-by-step checklist
- Get pre-approved by at least two lenders and request Loan Estimates so you can compare interest rates and fees line by line.
- Ask your lender to estimate prepaids for taxes, insurance, and interest, plus the initial escrow deposit.
- Request quotes from title and escrow, and ask who typically pays the owner’s title policy in Salinas.
- Order key inspections early, including home and pest, and any specialized inspections your agent recommends.
- Review the preliminary title report for easements, liens, or special assessments, including any Mello-Roos.
- Confirm transfer taxes and recording fees with your escrow officer. They will give you the most current local numbers.
- Prepare your funds to close and verify wiring instructions directly with escrow to avoid wire fraud.
What to expect on disclosures
- Loan Estimate. Your lender provides this early in the process. It outlines interest rate, payment, and projected closing costs.
- Closing Disclosure. You receive this before closing. It shows your final numbers and cash to close.
Compare these documents and ask questions. Small changes in timing or credits can change your total.
Work with a local guide
Clear expectations and early planning can make closing day in Salinas smooth and stress-free. A local team can help you spot negotiable items, confirm Monterey County customs, and coordinate inspections and escrow so your numbers stay on track. If you are weighing seller credits, lender credits, or assistance options, personalized guidance can save you time and money.
Have questions about your specific price point, neighborhood, or loan type? Reach out to Homes by Henson for friendly, local guidance through every step of your purchase.
FAQs
How much cash do Salinas buyers typically need at closing?
- Most buyers in 93901 should plan for about 2-5% of the purchase price, excluding the down payment. Your Loan Estimate and Closing Disclosure will show your exact amount.
Who pays for title insurance in Salinas transactions?
- It varies by local custom and negotiation. In many California markets the seller often pays the owner’s policy, while buyers typically pay the lender’s policy. Confirm in your offer.
Can I roll closing costs into my mortgage?
- Some costs can be financed or offset with lender credits, subject to program limits. Rolling costs into the loan increases your balance and interest costs over time.
What inspections should I budget for in Monterey County?
- Budget for a general home inspection and a pest inspection. Typical ranges are about $300 to $800 or more for home inspections and $75 to $300 or more for pest. Specialized inspections may be recommended.
Are there programs that help with closing costs locally?
- Yes. Explore state options like CalHFA along with City of Salinas or Monterey County resources. Eligibility rules apply and programs change, so verify current offerings.
How long does escrow usually take for Salinas purchases?
- Many standard transactions close in 30 to 45 days. Timelines vary with financing, appraisal, and contingencies.
