Buying a home is a significant financial commitment. It’s important to budget beyond the down payment, and closing costs are a considerable portion of that equation. On average, homebuyers in Florida can expect to pay between 2% and 5% of the home’s purchase price in closing costs, so it’s important to make sure to budget accordingly.
What are the Average Closing Costs in Florida?
Closing costs include a variety of fees and services required to complete the real estate transaction. Florida is one of the most expensive states for closing costs and a large portion of it goes to the city and state in the form of doc stamps and transfer and recording fees. On average, these fees represent 1% of the purchase price. Here are some other closing costs to consider:
- Appraisal. Before a loan can be approved, a lender will require an appraisal by a state licensed professional. They provide a written estimate of the market value of the home based on sales of comparable homes, while adjusting for any special attributes or flaws of the home. This average cost ranges from $350 to $700 for a standard sized residential home.
- Home Inspections. Whether a lender requires it or not, home inspections are highly recommended for obvious reasons. The average cost ranges from $250 to $500 for a standard sized residential home.
- Survey. Your lender will require a survey of the property to confirm that there are no infringements on the surrounding property. The average cost ranges from $300 to $500 for a standard sized residential home.
- Mortgage Banker/Broker. These consultants/lenders shop around between different banks for the best loan terms, then assist in the underwriting process. They can originate, sell, and service mortgage loans. The typical fee for this services ranges between $900 and $1500 called a loan processing or underwriting fee plus anywhere from 0-3% of the loan amount as an origination fee.
- Title Insurance. One of the largest costs is title insurance, which protects the buyer and lender in case there are issues with the title after the sale. In Florida, this can cost anywhere from $1,000 to $2,500, depending on the home’s value.
Buyers should also budget for prepaid expenses like property taxes, homeowners’ insurance, and HOA fees if applicable. These are paid upfront at closing and can significantly affect your cash flow and financial responsibility.
When choosing The Law Office of Donna Hearne-Gousse, P.A. for your title, escrow, and closing needs, we’ll be sure to clarify all of these financials for you. You’ll enjoy all the benefits associated with an attorney-based title agency at similar, and in many cases, lower costs than a standard title company will charge. Please contact us for more information on closing costs, or complete legal representation in the areas of real estate law.
The Law Office of Donna Hearne-Gousse
(561) 582-5670