A Buyers Guide to Closing Costs in Florida
A Buyers Guide to Closing Costs in Florida breakdown.
Below is a list of the various items included on a closing statement. Use the breakdown of a buyers guide to closing costs in Florida to understand the different line items before making your purchase.
- Origination Fee – Payment to lender to evaluate your credit and underwrite and process loan.
- Discount Points – Paid to lender at closing to reduce interest rate over life of mortgage.
- PMI or Mortgage Insurance – Required if down payment is less than 20%. Protects lender if you default.
- Appraisal Fee – Paid to appraiser to confirm home’s fair market value.
- Title Search – Covers cost to confirm seller owns property, and it is free from liens.
- Title Insurance – Protects lender and (optionally) you if title claim surfaces later.
- Termite Inspection Fee – Inspection required to certify home is free of termite damage.
- Survey Fee – Charge to verify property boundaries.
- Flood Certification Fee – Covers cost to determine if home is in federally designated flood zone. If it is, lender will require you to purchase flood insurance. Some lenders also charge a separate flood monitoring fee to check for flood map updates.
- Prepaid Interest – Covers mortgage interest due between date of closing and first mortgage payment.
- Prorated Property Tax – Covers property taxes from date of closing to end of tax year.
- Homeowners’ Insurance – Typically, you’ll pay full firstyear cost upfront at closing.
- Homeowners’ Association Transfer Fee – Paid on properties governed by associations to transfer ownership documents to you.
- Initial Escrow – Lender may require first two months of next year’s homeowners’ insurance, flood insurance and property taxes to build up reserve.
- Closing or Settlement Fee – Paid to title company, attorney or escrow company that conducts closing.
- Recording Fee – Paid to state to record transfer of property from one owner to another.
- Transfer Tax – Paid to state, based on the amount of the mortgage.