Closing Costs in Florida for First-Time Home Buyers and Sellers

Closing costs in Florida is one of the most misinterpreted parts of the home buying process. When determining a home to purchase, many people neglect to factor in their closing costs and end up spending more than they originally planned. We are here to address this issue so that you don’t face unexpected financial challenges when closing on your new home. In this in-depth guide, you will learn what is included in closing prices, what you typically expect to pay, and strategies for negotiating and reducing fees.

You might be asking yourself what closing costs are. A closing cost is a cost of completing a real estate transaction. Lender, title, insurance, and mortgage broker fees are often included in the closing price and found in the closing documents. Whether you’re buying your first home or your second home, preparing for the closing costs will keep you one step ahead of the loan process. Closing fees may vary from lender to lender. It differs in that it may include a loan repayment fee, title insurance, appraisal, credit report, registration fee, flood certificate (if applicable), and tax service fee. Closing costs are the fees most buyers pay when selling a home, but sometimes sellers contribute a portion—or all—of the closing costs. Closing fees are prepaid. They are not included in the loan balance, unlike the down payment. This is an excellent reason to estimate the closing cost at a higher price. Each house is different, so knowing the final cost will depend on the home you’re planning on purchasing.

Who pays for closures in Florida? Closing costs are unavoidable when buying or selling real estate. Although it varies from state to state, the closing fee you must pay in Florida depends on the property and the county in which it is located. Even if both the seller and the buyer pay the closing fee, you, as the buyer, are responsible for most of the fees and taxes. Compared to other parts of the United States, the cost of closing in Florida is relatively high. The closing costs in Florida is ranked 16th highest out of our 50 states.

How Much are Closing Costs in Florida?

Closing costs are typically around 1.7% of the home sale price in Florida, excluding real estate agent fees. However, sometimes the cost of closing in Florida can be between 3% and 6% of the sale price. Closing costs are the same in every state in the United States, but in Florida, the three taxes that go into closing costs are intangibles, state taxes, and deed taxes.

What’s Included in Closing Costs in Florida?

Loan repayment fees: processing and underwriting fees Exam and Investigation Fees title insurance homeowner insurance

Private Mortgage Insurance (PMI with no 20% down payment)

Mortgage Points property tax Closing or Escrow Fee

What Are the Buyer’s Closing Costs in Florida?

In Florida, home buyers spend more than 2% of the purchase price.  Florida Buyer Closing Fees include investigation and evaluation fees. Some credit companies charge for preparing your credit report, which should not exceed $100. Home inspection and registration fees are also factored into a buyer’s expenses before purchasing a home. If there is an HOA for the house, the fees for HOA approval are distributed pro-rata.

What Are the Seller’s Closing Costs in Florida?

A Florida seller’s closing cost is typically 5-10% of the home’s purchase price. The highest closing cost for Florida sellers is the real estate fee, which is usually 5-6%.

What Should I Know About Mortgage Loans?

Again, whether you’re buying your first home or familiar with the mortgage loan process, one of the first things you need to know is the mortgage interest rate. To get the highest interest rates, you need to pay attention to the housing market itself.

How Do I Calculate the Closing Costs?

Most mortgage lenders have a final cost calculator on their website. It’s as easy as entering your loan details into a closing cost calculator. You can estimate the fee you will ultimately pay at the close, also known as mortgage repayment. Again, this is a rough estimate, but you know how much money you will need to close a deal in advance.

If you are buying a home for the first time or desire to learn how to lower your current mortgage interest rate, it is essential to consult with an experienced broker who can provide guidance.

Meridian Trust is a professional home investment company. We specialize in buying homes, townhouses, condos, apartments, and multi-family units–for cash. With over 15 years in the industry and tens of thousands of properties purchased, we are the trusted experts in real estate transactions. Click here to contact us or give us a call at (954) 807-9087.