I can't give you an exact figure of the closing costs you'll incur on the home you buy...but I can prepare you for the things you will be charged for, and I will always do my best to give you an estimate of your closing costs so you aren't shocked at the closing table!
For Buyers:
Taxes: Since property taxes in Florida are paid in arrears, you will be responsible for paying the property taxes from the day of closing until the end of the year. That payment will be due in November or later, so technically, it's not a closing cost. On the other hand, you will get, from the sellers, the taxes from January 1 up until the closing date...so these amounts depend on your closing date.
Title Insurance: The cost of title insurance is based on what you pay for the home. A $200,000 home requires title insurance that costs $1,075.00 (in 2020)
Title Company Fees: Each title company has their own charges. And, depending on what you need, you'll be charged accordingly. Some people require courier fees if they are closing from out of town, for example. If you are closing at the title company, that won't be charged to you.
Government Recording and Transfer Charges: You will have recording fees, intangible taxes and transfer taxes.
Lender fees: You will have underwriting fees and other fees here. Be sure to ask your lender what they charge and be prepared!
Insurance and Taxes for escrow: Lenders require that you pay a whole year plus up to three months of insurance in advance. This is not lender "fees"...it's in addition to lender fees. When you have an escrow account, the lender charges a lot of upfront monthly fees so that they have enough money in your escrow account to pay the taxes and insurance when they come due.
Miscellaneous: You may have an HOA or be moving to an area with an HOA...those monthly fees will be prorated. There may also have Estoppel fees charged by the HOA. You may have elevation certificates, depending on where you move. And, you will most likely have a survey to pay for as well.
This list isn't all inclusive because there are circumstances that affect buyers differently. However, you will be provided with an estimate from the title company before closing, so be prepared to ask for estimates from your lender and title!
For Sellers:
Taxes: Since taxes are paid in arrears, you will be responsible for the property taxes paid from January 1st to the day before closing and that will be given to the buyers. The buyers will be responsible for paying taxes at the end of the year, so you are only paying taxes for the time that you occupied the home.
Title Insurance: The cost of title insurance is based on the selling price. A $200,000 home requires title insurance that costs $1,075.00 (in 2020)
Commission: Sellers are the one's that usually pay commission to both realtors. That is an agreed upon price between you and your Realtor/Broker when you list your home.
Doc Stamps on the Deed: This depends on the price at which you sell your home. Your realtor can give you this figure. If they can't, you might want to interview a few more realtors!
Miscellaneous: You may have agreed to purchase a home warranty for the buyers or even pay some of their closing costs to help them get into your home.
Title Fees: Each title company has their own charges. And, depending on what you need, you'll be charged accordingly. Some people require courier fees if they are closing from out of town, for example. If you are closing at the title company, that won't be charged to you.
These figure are always ESTIMATES . It's impossible to give an exact figure ahead of time, but the estimates will help you prepare for closing!
Before you start shopping for a home, be sure to be prepared! First, find a lender to see what you can afford based on your credit and income, then find a Realtor who can help you estimate your closing costs. You'll feel a lot better buying a home after being prepared!
“The opinions expressed on this blog are my personal opinions, and they don’t reflect those of my company.”
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