Are you planning to buy a home in Upland and wondering how much cash you’ll actually need at the finish line? Many buyers focus on the down payment and are surprised by closing costs. You can plan ahead. In Upland, most buyers should expect closing costs in the range of about 2% to 5% of the purchase price, not including the down payment. In this guide, you’ll learn what those fees cover, how your loan type changes the totals, and simple ways to reduce what you pay. Let’s dive in.
Upland closing costs at a glance
Closing costs are the one-time fees due at signing. In Southern California, many are customary and some are negotiable. Here’s what buyers typically pay in Upland:
- Lender fees and origination: usually about 0.5% to 1.5% of the loan amount, or a flat fee.
- Points to buy down your rate: optional, often 0% to 2% of the loan.
- Appraisal: commonly $450 to $900 for a single-family home in the Inland Empire.
- Credit, flood, and tax service fees: usually $25 to $250 combined.
- Title insurance (lender’s policy): regulated rates that scale with your loan amount, from hundreds to a few thousand dollars.
- Escrow fees: often $600 to $2,000 or more for the buyer share, depending on price and whether fees are split.
- Recording fees: typically a few hundred dollars paid to the county to record your deed and mortgage.
- Prepaid items: first-year homeowners insurance, prepaid interest from closing to your first payment, and property tax prorations. These can add up to thousands depending on timing.
- HOA fees (if applicable): transfer or estoppel fees often $200 to $500 or more.
For planning, budget a total of about 2% to 5% of the purchase price for closing costs, plus your down payment. Conventional loans with lower lender fees tend to land near the lower end. Loans with upfront insurance or higher prepaids push toward the higher end.
Who pays what in Southern California
Local custom in much of Southern California includes the seller paying the owner’s title insurance policy and real estate commissions. Escrow fees are often split 50/50. Buyers usually pay lender-related fees, the appraisal, the lender’s title policy, and prepaids. These items are negotiable. Your Purchase Agreement and any counter offers decide the final split.
Upland and San Bernardino County may also have a documentary transfer tax. Rates and who pays can vary by area. Do not assume there is no tax. Your escrow officer will confirm current rates with the San Bernardino County Recorder and clarify who pays it in your contract.
How loan type changes your costs
Your loan program is one of the biggest drivers of closing costs. Here’s how the common options compare.
Conventional loans
- What to expect: lender fees, appraisal, title and escrow, recording, and prepaids.
- Mortgage insurance: if you put less than 20% down, you’ll likely have private mortgage insurance (PMI). PMI is usually monthly, not a one-time closing fee, unless you choose an upfront PMI option.
- With 20% down, there is no PMI, which can keep closing costs closer to the 2% to 3% range.
FHA loans
- Upfront Mortgage Insurance Premium: typically 1.75% of the loan amount. You can pay it at closing or finance it into your loan.
- Annual mortgage insurance applies as part of your monthly payment. That affects affordability, not your upfront closing total beyond the UFMIP.
- Sellers can often contribute up to the FHA limits toward your closing costs, which can help reduce your cash to close.
VA loans
- VA funding fee: a one-time fee that varies with down payment and prior VA use. Many buyers finance it into the loan, and some veterans are exempt.
- No monthly PMI, which can lower your overall monthly cost compared to a low-down-payment conventional loan.
- VA guidelines allow certain seller-paid costs and concessions within program limits.
USDA loans
- Guarantee fee: upfront and annual fees apply for eligible properties and income-qualified buyers. The upfront fee can often be financed.
- USDA loans have property location and income limits and allow seller concessions within program rules.
Bottom line: low down payment programs reduce cash needed for the down payment but may add an upfront fee and ongoing insurance. Conventional loans with 20% down often have the simplest closing-cost profile.
Local taxes and assessments to review
Buying in Upland means you should check a few local items that affect both closing and your ongoing budget:
- Property taxes: California’s base property tax is about 1% of assessed value, plus voter-approved assessments. In San Bernardino County, effective rates commonly fall around 1.0% to 1.5%, and can be higher where Mello-Roos applies.
- Mello-Roos and special districts: many newer Inland Empire communities carry Mello-Roos bonds that increase the annual tax bill. Escrow will prorate taxes at closing, and you should review the current bill before removing contingencies.
- HOA dues: confirm monthly dues and any transfer or setup fees collected at closing.
- Transfer tax: confirm the current county and city policies with your escrow officer.
If you need help stretching your budget, explore assistance options through CalHFA, San Bernardino County, or city programs for eligible buyers. These can help cover part of your down payment or closing costs if you qualify.
Cash to close, explained step by step
Your cash to close is the total you need to bring to closing. It includes:
- Down payment.
- Closing costs: lender, title, escrow, recording, and related fees.
- Prepaid items: first-year insurance, prepaid interest, and property tax proration.
- Escrow reserves: some lenders require funds to start your tax and insurance escrow.
- Less any seller credits or lender credits.
Timeline in a typical Upland escrow:
- Offer accepted and escrow opens. Most escrows run 21 to 30 days, depending on contingencies and loan approval.
- Within 3 business days of your loan application, your lender provides a Loan Estimate.
- At least 3 business days before closing, you receive a Closing Disclosure with your final cash to close.
- You wire funds to escrow, loan funds, and the county records the deed to close.
Real-world examples for Upland buyers
These examples illustrate how the numbers come together. Your actual costs will depend on your price, loan, and timing.
Example A: $500,000 purchase, conventional, 10% down
- Estimated buyer closing costs: roughly 2.0% to 3.0% of price, or about $10,000 to $15,000.
- Typical items: appraisal about $600, lender fees about $3,000, title and lender policy about $1,200, escrow and recording about $1,200, prepaids about $3,000, HOA or other fees about $1,000.
- Cash to close: down payment $50,000 plus closing costs $10,000 to $15,000, totaling about $60,000 to $65,000, plus any required reserves.
Example B: $700,000 purchase, FHA, 3.5% down
- UFMIP of about 1.75% of the loan can be financed or paid at closing. If paid upfront, it increases your cash to close.
- Estimated closing costs including optional upfront UFMIP: about 3.0% to 4.5% of price, or roughly $21,000 to $31,500, plus the down payment of $24,500. Total cash to close about $45,500 to $56,000.
- If you finance UFMIP, the upfront cash drops, but your monthly payment rises.
Ways to lower your out-of-pocket costs
- Ask for seller credits. In the right market conditions, sellers can contribute toward your closing costs within loan program limits.
- Shop lenders. Compare Loan Estimates, ask for itemized fee explanations, and negotiate origination fees.
- Use lender credits. Accept a slightly higher rate in exchange for credits that cover part of your closing costs.
- Finance eligible fees. FHA UFMIP and the VA funding fee can often be rolled into the loan.
- Time your closing. Closing earlier in the month can reduce prepaid interest due at signing.
- Explore assistance programs. State, county, or city programs may offer grants or forgivable loans to qualified buyers.
Pro tips for a smooth closing
- Get quotes early. Ask your lender and escrow for estimates so you can plan for the 2% to 5% range with confidence.
- Verify taxes and assessments. Review the property tax bill, Mello-Roos disclosures, and HOA documents before you remove contingencies.
- Watch the calendar. Your Closing Disclosure will arrive at least 3 business days before signing. Use it to confirm your final cash to close.
- Keep credits clean. Make sure any seller or lender credits are clearly written into the Purchase Agreement and the loan file.
Ready to map your cash to close on a specific Upland home? Talk with local advisors who know Foothill communities and the San Bernardino process inside and out. Connect with Carlos & Pat Samuelson and Associates for a personalized plan.
FAQs
Who pays closing costs in Upland purchases?
- Custom often has sellers covering the owner’s title policy and transfer tax, buyers covering lender-related fees and prepaids, and escrow fees split, but all terms are negotiable.
How much should first-time buyers budget in Upland?
- Plan for about 2% to 5% of the purchase price in closing costs, plus your down payment, and budget toward the higher end with FHA or higher prepaids.
Do FHA and VA loans increase upfront costs?
- FHA has a 1.75% upfront mortgage insurance premium and VA has a one-time funding fee unless exempt, both of which can be financed or paid at closing.
What local items can raise my payment after closing?
- Mello-Roos or special assessments, HOA dues, and supplemental property tax bills can increase ongoing costs, so review disclosures and tax bills carefully.
When will I know my exact cash to close?
- Your lender must issue a Closing Disclosure at least 3 business days before closing that shows your final cash to close.
