Buyers plan for the down payment. It is the number everyone talks about. Then the closing statement arrives and there are several thousand dollars more, some of which nobody mentioned.

Here is the whole picture, so it is boring rather than alarming.

Before you are even in contract

Your earnest money deposit goes in early, and it is not extra money. It counts toward your purchase. But it leaves your account weeks before closing, so it has to be liquid and ready when you write the offer.

Inspections come out of pocket and are not refundable. A general inspection, plus whatever specialists the house calls for: sewer camera, roof, chimney, structural, pest. On an older Northeast LA house you may want several. Budget for the possibility that you pay for inspections on a house you do not end up buying. That is the cost of finding out early, and it is money well spent.

The appraisal is usually paid to the lender at or near application.

At closing: lender costs

Loan origination or points if your program has them, underwriting and processing fees, credit report, and prepaid interest covering the days between closing and your first payment.

Then the escrow account. Your lender will usually collect several months of property taxes and a full year of homeowners insurance upfront to fund it. This surprises people more than any other line, because it is a large number that is not a fee, it is your own money held in advance.

In Los Angeles, property taxes on a newly purchased home get reassessed to your purchase price. If you budgeted from the seller’s current tax bill on a long held property, your number is materially too low. Check this early.

At closing: title, escrow and recording

Escrow fees, the lender’s title policy, recording fees, notary, wire fees. Who pays which share is partly local custom and partly negotiated, and your agent should be able to tell you what is typical in the county you are buying in.

What lenders check that nobody mentions

Reserves. Many loan programs require you to still have a defined number of months of housing payments in the bank after closing. If closing empties your accounts completely, that can itself become an underwriting problem, even if you technically had enough to close.

Also worth knowing: large deposits into your accounts during escrow have to be documented and sourced. Gift funds have their own paperwork and timelines. If family is helping, start that conversation early rather than a week before closing.

The number people forget entirely

Moving costs, immediate repairs, the locks you will change, window coverings, and whatever the inspection told you to deal with in the first month. None of it is closing costs. All of it is real, and it lands in the same few weeks.

How to get a real number instead of an estimate

Your lender is required to give you a Loan Estimate early and a Closing Disclosure before closing, and those contain the actual figures. Ask for a written estimate of cash to close as soon as you are in contract, and ask specifically what it assumes about property taxes and insurance.

Then add the things that will not appear on it: inspections you have already paid, moving, and a genuine cushion. The buyers who find this stressful are almost always the ones who planned to the exact dollar.

General information about closing costs for California buyers, not lending or tax advice. Costs vary by loan program, lender, price and county. Your Loan Estimate and Closing Disclosure are the authoritative documents for your transaction.