If you're buying in Sherman Oaks, budget 2% to 5% of the purchase price for closing costs. On a home at the local median of about $1.35 million, that's roughly $27,000 to $67,500 — on top of your down payment.
That range is wide because it depends heavily on your loan. Here's what's actually in it.
What you're paying for
Lender fees — $3,000 to $12,000 Origination or points, underwriting, processing. Points are optional: you're pre-paying interest to lower your rate. Whether that's worth it depends on how long you'll keep the loan.
Appraisal — $700 to $1,200 Higher in the Valley than the national average, and higher again for larger or unusual properties.
Title insurance — $2,000 to $4,000 Two policies exist. In Los Angeles County the seller customarily pays for the owner's policy and you pay for the lender's. "Customarily" means negotiable.
Escrow fee — roughly $2 per $1,000 plus a base fee On $1.35M that's around $2,950, and in Southern California it's commonly split between buyer and seller.
Prepaid property taxes — $3,000 to $9,000 This is the one that surprises people. California bills in arrears on a July–June fiscal year, and your lender will usually collect several months into an impound account at closing.
Prepaid interest — a few hundred to $4,000 Interest from your closing date to the end of that month. Closing on the 3rd costs you far more prepaid interest than closing on the 28th. If your dates are flexible, this is free money.
Homeowners insurance — $1,200 to $3,000 Usually the first full year, paid up front. In parts of the Valley near the hills, wildfire risk has pushed premiums up sharply and some carriers have withdrawn. Get quotes before you're in escrow, not during.
Recording, notary, courier — $150 to $400
What it looks like on a real purchase
Median-priced Sherman Oaks home, 20% down, conventional loan:
Purchase price $1,350,000
Down payment (20%) $ 270,000
Loan amount $1,080,000
Lender fees $ 6,500
Appraisal $ 900
Lender's title policy $ 2,400
Escrow (half) $ 1,475
Property tax impounds $ 5,400
Prepaid interest (mid-month close) $ 2,100
First-year insurance $ 2,200
Recording + misc $ 300
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Closing costs $ 21,275
Cash needed at closing $ 291,275
About 1.6% of the purchase price. Toward the low end, because a conventional loan with no points is the cheapest version of this. An FHA loan, a jumbo, or buying points can push it well past 3%.
You can run your own numbers with our closing cost calculator.
Three ways to pay less
Ask the seller for a credit. In a market where homes are sitting, a seller credit toward closing costs is often easier to negotiate than a price reduction — it costs them the same and it solves your actual problem, which is cash on hand.
Close later in the month. Purely a timing choice, and it can save $1,000–$3,000 in prepaid interest.
Shop the lender, not just the rate. Fees vary more than rates do. Ask every lender for a Loan Estimate — it's a standardised form, so section A is directly comparable across all of them.
What isn't a closing cost
Your down payment is separate. So is your earnest money deposit, though that gets credited toward your total at closing.
Moving costs, immediate repairs and furniture aren't closing costs either, but they're real, and they land in the same month. Most buyers underestimate this by a few thousand dollars.
The short version
On a median Sherman Oaks purchase, plan for $25,000 to $40,000 in closing costs on top of your down payment, and ask your lender for a written Loan Estimate early. The number on that form is the one that matters — everything before it is an estimate, including this article.
Written by Emily Rose, a licensed California REALTOR® serving Sherman Oaks and the San Fernando Valley. Figures are estimates for general guidance, not a quote. Median price per Redfin, May 2026. Your actual costs depend on your lender, loan type and negotiated terms — always work from your Loan Estimate and Closing Disclosure.