What are the Closing Costs in Florida?

Florida Closing Costs
Florida Closing Costs with Mortgage Rates Today

Closing costs in Florida on average range between 7% to 9% of the loan amount, depending on the size of the loan according to the National Association of REALTORS®. Closing costs are the extra fees that come with buying a home. The majority of closing costs are charged by third parties who must be compensated for their involvement in the transaction. To show how much closing costs in Florida are, we’ll break down the expenses that make up the total.

Here are the main closing costs in Florida on average:

  • Lender fees range between $1000 – $1500
  • Escrow account fee range between $1500 – $3000
  • Title search fee range between $300 – $600
  • Appraiser fee range between $300 – $500
  • Survey fees range between $350 – $650

What are the Types of Closing Costs in Florida?

Here are the types of closing costs in Florida: 

  • Property Title Search
  • Title Insurance
  • Inspection Fee
  • Appraisal Fee
  • Escrow Fee
  • Survey Fee
  • Credit Report Fee
  • Early Payoff Fee
  • Attorney Fee
  • Lender Fee
  • Transfer Tax
  • Recording Fee
  • Prepayment Penalty
  • Property Taxes
  • Down payment
  • Outstanding Balance

 

How to Estimate Closing Costs in Florida?

Because there are so many different types of closing costs in Florida, it’s best to get more information from a local Loan Officer. However, before you can estimate closing expenses, you must first understand what fees are involved, who pays which closing costs, and how prices can vary depending on the loan amount. When negotiating the Contract, it’s important to keep in mind that the Buyer may request that the Seller pay some or all of the closing costs. You must first understand the various closing costs in Florida to determine if this is the best option for you.

Here’s a short rundown of the most frequent Florida closing costs:

Title Search Fee Florida

The abstract of title search allows the current owner to sell their home while also guaranteeing that the property is legally theirs and free of liens or judgments. The price fluctuates between $300 and $600, according to Realtor.com.

Title Insurance Florida

Title insurance protects lenders and buyers from any difficulties uncovered after the closing with the prior owner’s title. Title insurance costs $5.75 per $1000 up to $100,000 and $5.00 per $1000 up over $1,000,000 on average.

Home Inspection Florida

Home inspections are important since they discover any issues with the property and should not be neglected. The house could have significant structural, plumbing, electrical, or roofing issues that need to be addressed and could cost tens of thousands of dollars to fix. It’s a great way to evaluate the home’s condition before closing. In Florida a home inspection usually costs between $250 and $350.

Appraiser Fee Florida

The Appraiser is responsible for determining a fair and accurate house price as well as the property’s condition, on behalf of the Mortgage Lender. The Appraiser determines value using a variety of factors, the most important of which is how much other comparable houses in the area have sold for in the last six months. An appraisal in Florida normally costs between $300 and $500.

Escrow Accounts Florida

The Lender establishes an escrow account to pay your taxes and insurance. This cost is influenced by the time of year you buy, as well as the amount of annual property tax and hazard insurance. The money you’ll need for your escrow account might be anywhere between $1500 and $3000. The more costly a home is, the more expensive it is to form an escrow account.

Survey Fee Florida

A survey is used to assess a home’s legal constraints. The cost is estimated to be between $350-$650 by Home Advisor experts. In essence, these surveys give you a legal description of where your property borders begin and end. A survey is not always required, and the date of the previous survey determines whether or not one is required.

Credit Report Fee Florida

When applying for a mortgage, Buyers are subjected to credit checks to ensure that they are creditworthy. The cost of a credit report can range from $20 to $50.

Fee for Early Payoff Florida

These expenses usually include prepaid interest and other Lender fees. When the mortgage is paid off, the seller, on the other side, pays this fee.  This is not a fee the buyer needs to be concerned with.

Real Estate Attorney Fees in Florida

The average Real Estate Attorney Fees in Florida can be estimated between $150 and $350 an hour. The Attorney’s job is to make sure the Seller has the financial means to sell the house, that the Buyer is buying a house free of judgments or liens, and that the Buyer is buying the right property, including the land. The Attorney is responsible for the Title Search, Closing, Wiring of Funds, and other costs associated with the Closing. The cost of an Attorney varies based on whether the transaction is a purchase or a refinance, as well as the purchase price and loan amount.

Fee charged by the Florida lender

Lenders frequently levy a single large fee, known as a Lender Fee, Underwriting Fee, or Application Fee, that ranges from $950 to $1250. Other small fees, such as credit reports, tax service fees, and flood certification fees, usually totals between $100 and $200, are levied. The Lender may charge an Origination Fee, which is an additional fee charged to the Buyer for utilizing this Lender. There are a few Lenders who do not charge Origination Fees, and we recommend that you look for one. A discount fee is a fee charged to reduce the interest rate on a loan. It is an optional fee that lowers the rate for the customer.

Taxes on Transfers Florida

House sellers in Florida should expect to pay on average of $0.60 per $100 of home value in sales taxes, however rates vary by county. This real estate expense is normally paid by the seller and should be documented in the closing statements or settlement statements.

Fee for Recording Florida

The recording price includes the cost of recording a Deed at a local courthouse. In Florida, these costs will vary from county to county. On Average the recording fee in Florida is roughly $10.

Penalty for early payment Florida

On average the prepayment penalties are generally 3%-4% of the loan. Some states charge prepayment penalties if you obtain a mortgage and pay it off before the term finishes.

Exceptional Amount Florida

Any outstanding HOA or homeowner’s insurance premiums will be prorated to the closing date. As a result, you must pay mortgage insurance or any outstanding liabilities before the property may be transferred to the Buyer.

Real Estate Commission at Closing in Florida

A normal real estate commission is 6% of the final sale price, and Florida real estate brokers are compensated by the seller. The fundamental reason for this is that the seller is better able to pay the fee because they are the one who receives the money from the transaction.

 

FL Closing Costs FAQs

What is the Average Closing Costs for Sellers in Florida?

Closing costs are different for both the Seller and the Buyer. Closing fees for house sellers in Florida cover the costs of transferring homeownership, clearing any outstanding amounts, and confirming the title.

What are the typical total Closing Costs in Florida?

Typical Total Closing Costs in Florida range between $15,000 to $20,000. Closing costs, which account for services such as appraisals, inspections, and legal paperwork at the end of the sales process, often range from 7% to 9% of the final sale price.

Who Pays the Closing Costs In Florida?

Closing costs can be split among the three parties engaged in the transaction: the Buyer, Seller, and Lender. It is crucial to obtain an estimate of all closing costs before making an offer on a home, so that it can be decided who pays the closing fees. When considering how to structure your offer, always obtain assistance from a local Loan Officer.

Conclusion of closing costs in FL

Closing costs in Florida are unavoidable whether selling or buying a home. The exact amount will vary based on the sale price, size of the home. county property taxes and the kind of real estate transaction. Your family can save a large amount of money by looking for ways to minimize services and closing costs. Please do not hesitate to contact the Mortgage Rates Today team for more information on Florida closing costs and to get the best rates.

More About Florida

Florida is a state in the United States that is located in the
Southeast. The Gulf of Mexico borders Florida on the west, Alabama on
the northwest, Georgia on the north, the Bahamas and Atlantic Ocean on
the east, and the Straits of Florida and Cuba on the south; it is the
only state that borders both the Gulf of Mexico and the Atlantic Ocean.
Florida is the 22nd largest state in terms of area (65,758 square
miles/170,310 km2) and the third most populous (nearly 21 million
people). Tallahassee is the state capital, and Jacksonville is the most
populated city. The Miami metropolitan region, with a population of
about 6.2 million people, is the most populous in Florida and the ninth
most populous in the United States; other major conurbations with
populations exceeding one million include Tampa Bay, Orlando, and
Jacksonville.

For at least 14,000 years, many Native American populations have
lived in Florida. The first recorded European to make landfall was
Spanish explorer Juan Ponce de León in 1513, who named the location La
Florida ([la floia] for its lush foliage and the Easter season) (Pascua
Florida in Spanish). Florida was the first location in the continental
United States to be permanently populated by Europeans, with the Spanish
town of St. Augustine being the oldest continuously inhabited city,
founded in 1565. Florida was contested by Spain and the United Kingdom
several times before being given to the United States in 1819; it became
the 27th state on March 3, 1845. The Seminole Wars (1816–1858), the
longest and most comprehensive Indian war in American history, were
fought mostly in Florida.
On January 10, 1861, the state seceded from
the Union, becoming one of the seven initial Confederate States. On
June 25, 1868, Florida was returned to the Union following the Civil
War.

Florida has witnessed substantial demographic and economic growth
since the mid-twentieth century. Tourism, hospitality, agriculture, real
estate, and transportation are the primary sectors of its $1.0 trillion
economy, which is the fourth-largest in the United States and the
16th-largest in the world. Florida is known around the world for its
beach resorts, amusement parks, warm and sunny environment, and nautical
recreation; sites like Walt Disney World, Kennedy Space Center, and
Miami Beach attract tens of millions of people each year.

 

 

 

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Last Updated on 09/21/2022 by Mark Verhoeven

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