Real Estate Closing Costs for Buyers in Petaluma, CA

Buying a home in Petaluma is a huge milestone — and while closing costs might sound intimidating, they don’t have to be. When you know what to expect and how to plan ahead, the final steps of your home purchase can feel smooth and totally manageable. In this video, I’ll walk you through the typical closing costs for buyers in Petaluma so you can head into escrow feeling confident and prepared.

Let’s start with the basics.

What are closing costs? These are the fees and expenses associated with finalizing the sale of your home. They’re paid at the very end of the transaction — just before you get the keys — and typically range from 2% to 3% of the purchase price.

So on an $850,000 home in Petaluma, you're looking at anywhere from $17,000 to $25,000 in closing costs. It’s a wide range, but I’ll walk you through the details.

First, we have your loan origination fee — usually 0.5% to 1% of your loan amount. This is what your lender charges to process your mortgage application.

Next is the appraisal, which typically costs $500 to $700. The lender uses this to verify the home's market value.

Then there’s the home inspection, usually around $400 to $700. It’s optional, but strongly recommended — especially in Petaluma, where some homes are over a hundred years old and others are brand new. You want to know what you're buying. Often times, home sellers have already performed inspections and those reports are found in the disclosures.

Title insurance comes next — figure about $600 to $1,600 depending on the price of the home. It protects both you and your lender in case any issues pop up with the property’s ownership history.

You’ll also pay escrow fees. Escrow fees in Petaluma typically range from $1.50 to $1.80 per $1,000 of the home’s sale price. That covers the third-party handling of all the money and documents during the transaction.

Then we’ve got recording fees — these are paid to Sonoma County to officially record the sale and usually cost around $125 to $250.

You’ll also need to plan for property tax prorations. Property taxes in Petaluma hover around 1.1% of assessed value, and depending on your close date, you’ll be responsible for paying your share upfront at closing.

And don’t forget homeowners insurance — usually $600 to $1,300 per year, and lenders often require you to pay the first year in full at closing. It is very important to get a quote for homeowners insurance before you even make an offer on a home. That way you can see the price and be positive that the home is insurable.

If you’re putting down less than 20%, you may also have private mortgage insurance — or PMI. That cost varies based on your loan, but it can add a few thousand dollars to your closing costs.

And finally, if you’re buying a home in an HOA community — which is common in parts of East Petaluma and some newer developments — you might need to prepay HOA dues or transfer fees at closing.

Now, let’s talk about how to lower your closing costs.

You can negotiate with the seller — especially if their home’s been sitting on the market for a while. You can ask the seller for a credit to cover closing costs. You can shop around for lenders, because different lenders charge different fees. You might even explore no-closing-cost loans, where the fees are rolled into the mortgage. 

Closing costs are a significant and sometimes confusing aspect of buying a home. However, with proper preparation, these expenses don't have to be unexpected. To get an accurate estimate of your closing costs in your desired Petaluma home price range, consult with your lender and real estate agent.

If you're planning to buy a home in Petaluma — or anywhere in Sonoma or Marin Counties — I’d be happy to help you find the right property and guide you through every step of the purchase with clarity and confidence. Feel free to call, text, or email me.