May 30, 2019

Buyer closing costs in Florida: How much will you pay?

HOME BUYER CLOSING COSTS

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You will need to show up at closing with much more than your down payment!

There are several costs involved in purchasing property in Florida, many which fall on the home buyer. Besides the actual purchase price of the home, buyer closing costs in Florida run anywhere from 2-4% and generally include:


Inspection costs:

You will most likely want to inspect the home you are purchasing. Full professional inspections for a home generally run between $400 and $1,000, depending on which inspections you choose to have. These are paid at the time the services are delivered.

Mortgage related costs:

If you are getting financing, the upfront costs of funding your loan vary widely by lender and loan product. These costs include: origination fees, processing fees, underwriting fees, credit reports, appraisal, upfront mortgage insurance or funding fees, prepaid taxes, interest and home-owners insurance, lenders title insurance policy, tax service fee, flood certification, and sometimes more. Your lender will be able to provide with an estimated CD – an estimate of all your closing costs related to the loan when you apply for your mortgage. Expect to pay at least 1-2% of the loan value. 


Government costs:

  • Recording Fees: ( $10 for the first page and $8.50 every page thereafter in Duval county). 
  • Documentary stamp taxes: Mortgages, are subject to tax at $0.35 per $100.00 of indebtedness. 
  • Intangible tax: $0.002 x total loan value.

Settlement costs:

These are  amounts charged by the title agent to close your sale. The average settlement cost is $400-$500.


Prorations:

There may also be adjustment for items such as prepaid taxes, heating fuels or other prepaid services, HOA fees, etc. These can vary widely.


At closing you will need to deliver your down payment (less any deposits already paid) and the above closing costs.


EXAMPLE:

John and Mary purchase a Jacksonville home for $200,000. They put down $10,000 and finance $190,000. 

John and Mary pay $600 to have the home inspected. They pay for this at the time of inspection.

AT CLOSING: 

Mortgage related costs total $3,600.

Government fees total $1,245

Settlement costs total $400

There are no prorations.

John and Mary show up to closing with their $10,000 down payment, and $5,245 in combined closing costs for a total sum of $15,245.





Minna Reid

Minna Reid is a Broker Associate at Florida Homes Realty & Mortgage, serving northeast Florida.

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