What Are Closing Costs?
Florida closing costs include a bunch of fees for the services and expenses related to close a mortgage. Closing costs are a part of any home loan whether you buy a home or refinance it. While the majority of closing costs rest with the buyer, the seller has some, most notably a real estate agent commission.
Each mortgage lender is obliged to define your closing costs in the Loan Estimate you receive when you first apply for the loan and in the Closing Disclosure document you receive in the days before the closing day. Examine them carefully and ask questions about anything that is not clear or confusing.
"Skinny" Closing Costs With Fidelity Home Loans
One of our competitive advantages is to offer Florida home loan customers one of the lowest closing costs around. And we mean the lowest! We don’t bait and switch or add costs somewhere else. Fidelity wants to provide the top rates and terms and offer “skinny” closing costs for all our customers. For example, if you are mortgage a loan amount of $300,000 then an average closing cost in Florida for the buyer would be about $6000. With a Fidelity “skinny” closing cost loan, we can save customers up to 50% off that amount. That’s real money that stays in your pocket or not more money added to an interest-bearing loan.
What Are a Florida Home Buyer’s Closing Costs?
Before a bank or lender shells out for you to purchase a home, your lender will ask you to order and pay for a home appraisal to validate that their investment is assured. The average cost of a home appraisal by a certified appraisal professional in Florida can be up to $500 depending on the area you live in.
There are two times a money lender will run your credit score: in the preliminary stages when you’re getting pre-approved for a loan then just before closing to authenticate that your credit score is about equal. It typically costs between $30 – $50 run a report from Equifax, Trans Union, and Experian. Your credit score plays a huge part in deciding the interest rate you’ll get on your mortgage, and if you have less-than-perfect credit then a lender will frequently charge more closing costs because the risk of the mortgage has grown.
All home loan lenders will need you to pay for a home inspection to confirm that the home you’re about to purchase is structurally sound and in livable condition. The cost for a Florida home inspection could be as much as $400 – costs will vary by area depending on cost of living.
Recording fees are paid at settlement when you sign your final documents. In Florida, you’ll pay a one-time fee to your local county to record your mortgage documents, which can vary depending on the size of the document. The national average for recording fees is $125, but it could be lower or higher depending on the Florida county you live in.
Just like the name sounds, this is a tax that is paid when the possession of a property is transferred from the seller to the buyer. It’s usually equivalent to a percentage of either the sale price or appraised value of the property. The tax is set by the state, county, and/or city. Best to consult with your local county recorder’s office to determine the cost.
If you’re getting ready to buy a Florida home and you’re a first-time home buyer, then you may want to get comfortable with the types of fees and services that need to be paid on closing day. As mentioned earlier, all of these fees are detailed on your closing disclosure document.