When buying a home in California, it's important to understand that closing costs fall into two primary categories:

1. Costs Related to the Home Purchase:  
These are expenses directly tied to transferring ownership of the property itself. Examples include escrow fees, recording fees, transfer taxes, home inspections, broker compensation, prepaid property taxes, and sometimes costs for repairs or warranties negotiated in the sale.

2. Costs Related to the Mortgage Acquisition:
These are direct costs associated with obtaining a mortgage loan. They include lender fees, appraisal, credit reports, mortgage insurance, and broker compensation.

Who Pays What?  
Cash Buyers. Only pay costs related to the home purchase since they are not getting a mortgage.  
Mortgage Buyers.  Pay both the home purchase-related costs and the lender-related costs.

Why Are Closing Costs Different in Every Transaction?  Closing costs vary from one transaction to another because they are influenced by several factors:

1)  Loan Type: Conventional, FHA, VA, or other loan programs have different fee structures.  
2)  Property Value: Higher-value homes typically incur higher transfer and recording taxes.  
3)  Lender and Loan Details: Different lenders charge different origination, processing, and broker fees. 4)  The loan structure:  loan amount, interest rate, and whether you buy discount points also impact costs.  
5)  Negotiations and Local Regulations: Seller concessions, negotiated repairs, negotiated broker compensation and local taxes can make each closing unique.


Let's review some typical costs Related to the Mortgage Acquisition:

1)  Loan Origination Fees:  Usually 0.5% to 1.5% of the loan amount, covering processing and underwriting.
2)  Loan Processing Fees:  Administrative costs for handling your application.
3)  Credit Report Fees: pay for credit checks.
4)  Appraisal Fees: pay to assess property value.
5)  Discount Points: Optional payments to lower your interest rate (about 1% of the loan per point).  Also known as an interest rate buy down.  We will expand on this in an upcoming blog.
6)  Lender’s Title Insurance:  Protects the lender from ownership disputes, paid by the buyer based on the loan size.
7)  Prepaid Interest:  Prepaying interest from closing date to the next mortgage payment.
8)  Private Mortgage Insurance (PMI):  If your down payment is below 20%, PMI is typically required and can be paid upfront or monthly.  (read our blog about the SALT deduction which reinstated PMI as a tax write off in 2025)

9)  Prepaid Homeowners Insurance:  Homeowners insurance is essential for protecting your property and is often required by lenders. Typically, you’ll need to prepay the first year's premium at closing, either as a lump sum or escrowed into your monthly mortgage payments. This ensures your home is insured immediately after transfer.

Let's review Costs Related to the Home Purchase and are not directly related to your mortgage: 

1)  Escrow Fees:   Paid to the escrow company handling the transaction, often split between buyer and seller.
2)  Recording Fees:  Government charges for officially recording the deed and transfer of ownership, varying by county.
3)  Transfer Taxes:  State and local taxes based on the property's sale price.
4)  Home Inspection Fees:  Costs for inspections such as general, termite, or pest inspections.
5)  Prepaid Property Taxes:  You might prepay taxes for the upcoming year or reimburse the seller for pre-paid taxes.
6)  Home Warranties or Repairs:  Sometimes included as part of negotiations, influencing final costs.
6)  Broker Compensation:  Real estate agent or broker fees, which can often be negotiated with the seller or included in the purchase agreement.

In Summary:
Your total closing costs can vary widely depending on your loan type, property specifics, and negotiations. Understanding what costs are associated with the property purchase versus your mortgage helps you plan effectively and avoid surprises at closing.

Note: A responsible Realtor should refrain from providing a ballpark estimate of potential closing costs to clients because of the following reasons:

1. Variability and Complexity:  Closing costs are highly specific to each transaction, influenced by factors such as the loan type, property value, location, lender charges, negotiated terms, and more. Providing a rough estimate can lead to misconceptions or false expectations about the total expense.
2. Legal and Ethical Duty:  Real estate professionals have a fiduciary duty to provide accurate, transparent, and up-to-date information. Offering ballpark figures without detailed analysis can be misleading and may compromise their ethical obligation to act in the client’s best interest.
3. Risk of Misleading the Client:  Inaccurate estimates might cause clients to underestimate their financial obligations, potentially leading to budgeting issues or difficulty at closing, which can damage trust and cause delays.
4. Encourages Due Diligence and Proper Planning:  Instead, responsible Realtors encourage clients to review official documents like the Loan Estimate and to work closely with lenders to get precise, personalized estimates early in the process, ensuring clients have a realistic understanding tailored to their specific situation.

Iit’s best practice for Realtors to advise clients to rely on official documents and direct communications with lenders for precise costs, avoiding ballpark estimates that lack reliability and could potentially mislead. As your Realtors, we are committed to guiding you in the right direction and helping you obtain accurate, relevant information tailored to your specific transaction. Our goal is to ensure you’re well-informed and confident throughout your homebuying journey.

Connect with us easily through our digital business card! Stay updated and get in touch anytime — click here to access our contact information and professional profile.

Thank you for reading our Blog,

Please connect with us once you are ready.

Nestled in the picturesque landscape of Murrieta, California, Bear Creek Golf Club and the adjoining Bear Creek residential community offer a unique blend of luxury living and recreational opportunities. This vibrant community is designed for those who appreciate an active lifestyle, featuring a plethora of amenities that cater to residents of all ages.

Amenities That Enhance Your Lifestyle

• Community Center
  At the heart of Bear Creek lies the Community Center, a hub for social, recreational, and relaxation activities. It features:
  • Bear's Den: A spacious meeting and party room with a fully equipped kitchen, perfect for gatherings of up to 50 people, ideal for celebrations or community meetings.
  • Outdoor Pavilion: An inviting space for smaller gatherings, accommodating 25 people with retractable sunshades and casual seating to enjoy the beautiful Southern California weather.
  • Bear's Cave: A cozy retreat for intimate meetings or game nights, providing a warm atmosphere for up to 12 participants.
  • Locker Rooms: Complete with dry saunas and showers for post-workout refreshment, ensuring residents feel comfortable and rejuvenated.

• Fitness Facilities Bear Creek boasts three state-of-the-art gyms:
  • Cardio Room: Equipped with the latest exercise machines, from ellipticals to treadmills, aimed at promoting cardiovascular health and fitness.
  • Weight Room: Featuring a variety of free weights and machines for strength training, it enables residents to build muscle and endurance effectively.
  • Stretch-Core Room: A serene space designed for yoga, Pilates, and stretching routines, promoting flexibility and well-being in a tranquil environment.
  • Swimming Pool and Spa. The community’s 25-meter pool caters to both serious swimmers and casual dippers, providing a refreshing oasis. The large jacuzzi spa offers a relaxing retreat, perfect for unwinding after a workout or simply enjoying some leisure time.

• Sports Courts
  • Tennis Courts: Three hard surface courts and three clay courts, all equipped with floodlights for those late-night matches, enabling residents to play whenever they want.
  • Pickleball Courts: Four dedicated courts designed for excitement and friendly competition, complete with shaded seating and tables for a social experience.
  • Bocce Ball Courts: Ideal for players of all skill levels, featuring a shaded seating area, tables for relaxation, and a scoreboard to keep the fun spirited.
  • Children's Park: Safe play structures designed for children aged two and up, ensuring hours of imaginative play and social interaction in a secure environment.
  • Basketball Court: A half court with a height-adjustable backboard, making it accessible for players of all ages, plus floodlights for extended playtime under the stars.
• Bear Creek Golf Club. The crown jewel of the community is the Bear Creek Golf Club, a private course designed by the legendary Jack Nicklaus. Established in 1982, this member-only club features:
• 18-Hole Course: A beautifully maintained course that challenges golfers of all skill levels, with stunning views and expertly crafted holes.
• Driving Range and Practice Facilities: Ideal for honing your skills, whether you're warming up before a round or dedicating time for improvement.
• Dining Options: Savor a meal at the Dining Room Restaurant and Bar or enjoy a more casual dining experience at the Grill Room Restaurant.
• Pro Shop: Stocked with the latest golf gear and apparel, ensuring that members are well-equipped for their golfing adventures.

Conclusion
Bear Creek Golf Club and the Bear Creek community present an unparalleled lifestyle in Murrieta, California. With extensive amenities and beautiful surroundings, it’s a perfect sanctuary for those who cherish golf, sports, and a vibrant community living experience. Whether you're looking to relax by the pool, engage in friendly competition, or relish a round of golf, Bear Creek has something for everyone, making it a truly exceptional place to call home.

 Start your Bear Creek Country Club home search by clicking the below image.

Buying a home is one of life's biggest milestones — a moment filled with excitement and new possibilities. But for many, the biggest hurdle isn’t the dream itself—it’s coming up with the down payment. If that feels overwhelming, you're not alone. That’s why, during National Homeownership Month, Realtors® Scott and Caroline Doan want to spotlight a resource that could make your homeownership journey more achievable: **down payment assistance**.

What Is Down Payment Assistance?

Since 2008, Down Payment Resource (DPR) has been dedicated to helping prospective buyers discover financial aid they might not even know exists. DPR tracks over 2,500 assistance programs nationwide, providing tools that connect you to support, reduce your upfront costs, and make owning a home more affordable.

So, what exactly is DPA?

Down payment assistance programs are designed to help cover upfront costs — usually the down payment, but often they go beyond:

- Closing costs
- Prepaid expenses
- Interest rate buy-downs
- Even your buyer’s agent commission (yes, some programs cover this!)

Many programs also help reduce your monthly mortgage payments and decrease the total amount you’ll repay over time, making homeownership more manageable.

Debunking Myths: You Might Qualify More Than You Think

A common misconception is that DPA is only for low-income or first-time buyers. The reality is quite different:

- Income limits are often based on your local area, and many are higher than you expect.
- Your credit score doesn’t need to be perfect—if you’re close to lender requirements, you could qualify.
- Repeat buyers are welcome — nearly 40% of programs are open to those who have owned before.
- Buying unconventional homes? Almost 1,000 programs support manufactured homes, and over 800 cover multifamily properties like duplexes or fourplexes. You can even live in one unit and rent out the others to offset costs.

What Does Help Look Like?

DPA programs aren’t one-size-fits-all, but here are some examples of what you might find:

- Loans: 57% offer second mortgage loans—often at low or no interest.
- Deferred payments: 80% of these loans are deferred until you sell or refinance.
- Forgiveness: 53% of programs forgive portions of the loan over time, rewarding stability.
- Grants: 177 programs provide free money that you never have to pay back.

On average, these programs can reduce your loan-to-value (LTV) ratio by about 6%, easing your path to qualifying for a mortgage and lowering your monthly payments.

Finding Assistance Has Never Been Easier

Since partnering in 2021, over five million home shoppers have used DPR tools via Zillow, and 93% of users found at least one assistance program they may qualify for. That means help is out there, and you might be surprised at how close to your goal you already are.

Your Journey to Homeownership Starts Here

If saving that huge down payment has kept you on the sidelines, let DPR and your local real estate professionals help you turn that dream into reality. Scott and Caroline Doan are here to:

- Help you discover programs you’re eligible for
- Show how assistance can fit into your overall homebuying plan
- Connect you with knowledgeable agents and lenders familiar with DPA

Let’s Make Homeownership Happen

This National Homeownership Month, it’s time to rewrite the story of what it takes to buy a home. Down payment assistance isn’t just a “long shot”—it’s a practical, powerful resource that’s helping countless people across the country take that first step toward homeownership.

Your dream home might be closer than you think.

Ready to get started? Find down payment programs in your area today and see if you qualify. Scott and Caroline Doan are here to guide you every step of the way!  Here is the link to our website to get started. 

Looking to purchase? Reach out today and let’s explore your options together!

Thank you,

Scott and Caroline Doan Realtors®

(951) 541-3498

Realty Executives

28581 Old Town Front St. #100 

Temecula, Ca. 92591

doanhomesale@gmail.com

DRE#02248461

Dear Homeowners and future Homebuyers,

We're pleased to share some important news that could significantly impact your tax strategy and savings in the coming years. A recent change in federal tax law has temporarily increased the SALT (State and Local Tax) deduction cap from $10,000 to $40,000 beginning in 2025. This change offers noteworthy advantages, especially for homeowners in high-tax states.

What Does the New SALT Deduction Mean?

Starting with the 2025 tax year, taxpayers can now claim up to $40,000 in SALT deductions. This is quadruple the previous limit of $10,000, which was in effect from 2018 through 2024. The deduction amount is set to increase slightly each year through 2029, after which it reverts to $10,000 unless Congress acts to extend or preserve the increase. Additionally, there is a phasedown for taxpayers with a modified adjusted gross income over $500,000.

The new law also preserves the mortgage interest deduction at the levels established by the 2017 Tax Cuts and Jobs Act (TCJA), allowing homeowners to continue claiming mortgage interest deductions, which are a significant benefit of homeownership.

Why Is Deductibility of Mortgage Interest and SALT Important?

The ability to deduct mortgage interest and state and local taxes from your federal return has been a cornerstone benefit of homeownership for over a century. Prior to the 2017 law, many homeowners relied heavily on itemized deductions. However, the TCJA limited the SALT deduction to $10,000 while nearly doubling the standard deduction, which led to a sharp decline—from 31% of taxpayers in 2017 to just 9% in 2020—of those itemizing their deductions, according to the Tax Policy Institute.

Higher-tax state homeowners, in particular, were disproportionately affected by the $10,000 cap. This advocacy-led change aims to make homeownership more affordable and attractive, fostering stronger communities and social benefits such as improved educational outcomes, civic engagement, and health.

How Do I Take Advantage of the New SALT Limit?

To benefit from these changes, you'll want to itemize deductions on IRS Form 1040 Schedule A. In addition to SALT, common deductible expenses include:

• Mortgage interest
• Contributions to qualified charitable organizations
• Medical and dental expenses exceeding a certain percentage of your adjusted gross income

The law also restores deductibility of private mortgage insurance (PMI), which is often required for borrowers with less than 20% equity in their homes.

Additional Tips:

• Maintain thorough records and receipts to substantiate your deductions.

Consult with a qualified tax professional to ensure you leverage all available deductions and understand how the phasedown may affect high-income taxpayers.

Final Thoughts

These changes could have a meaningful impact on your tax savings and homeownership affordability. As policies evolve, we do our best to say informed and share the information they may benefit you the most.

When it is time to buyer or sell a home please call us.

Thank you Scott and Caroline Doan Realtors®

(951) 541-3498

Disclaimer:
This newsletter provides general information about recent tax law changes. It is not intended as tax advice. Please seek personalized guidance from a qualified tax professional or financial advisor before making any tax-related decisions.