The Buyer
In Florida, like elsewhere, most of your closing costs are incurred in connection with obtaining a mortgage; however, even if you are not obtaining a mortgage, you can expect the following closing costs.
- Survey: If you are purchasing a single family home, you will want to make sure exactly what the boundaries are to your property and make sure that there are no unusual easements or encroachnments affecting your property. Not required on most condominiums. $300 - $400
- Title Insurance: $5.75 per $1000 until $100,000, then $5.00 per $1000 thereafter.
- Hazard and Flood Insurance: Obviously, you want to protect your investment from fire or storm.
- Closing Fee: Charged by the closing agent for closing on the property. $325 - $600.
- Real Property Taxes and Homeowners Association Fees: These items need to be prorated at closing depending upon the time of year.
- Title Search: Charged by Title Insurance Underwriter for searching the title on the property. $75.00-$125.00.
- Home Inspection: You want a licensed inspection company to check out the roof structure and appliances. $300.00 - $400.
- Termite Inspection: Always recommended on single family residences. $45.00- $55.00.
- Condominium Association Application: Required by some Associations to approve you as a buyer. $100.00-$200.00.
Closing Costs for Obtaining a Mortgage or refinancing an Existing Mortgage.
Most lenders will charge for many of these items. Be sure to request a Good Faith Estimate and Truth and Lending Disclosure before committing to a loan. This disclosure will detail your estimated closing costs such as:
- Flood Certificate Fee: Charged by Lender to determine if the property is in a flood zone. $20 - $30.
- Tax Service Fee: Charged by Lender to monitor payment of real property taxes. $80 - $90.
- Loan Origination: Charged by Lender for giving you the loan.
- Loan Discount Fee: Charged by Lender for reducing the interest rate on the loan.
- Escrows: Some lenders require you to escrow money in advance for real estate taxes and insurance.
- Prepaid Interest: If you close on any day other than the last day of the month, you will need to prepay interest for the rest of the month.
- Title Insurance: Required by Lender to Close. $25.00 if purchase with simultaneous owner's title policy.
- Intangible Taxes: .0020% of the loan amount charged by State of Florida at closing.
The Seller
- Real Estate Commission: Generally 6-7% of the selling price.
- Documentary Stamps on Deed: .70 per $100.00 or $7.00 per 1,000 times the purchase price.
- Payoffs: Any existing mortgage INCLUDING equity lines or "revolving" lines of credit.
- Real Property Taxes and Homeowners Association Fees: These items need to be prorated at closing depending upon the time of year.
- Home Warranty, if applicable: $325.00 - $425.00.
- Courier or Wiring fees for mortgage payoffs: $15.00 each.
- Estoppel Fees: For confirmation of Homeowner/Condominium dues paid to date: $75.00-$150.00.