When you purchase a home, your lender will charge you a series of fees known as closing costs, which are necessary to finalize your transaction. On the day you close your loan, you will be expected to pay the associated closing costs with the home you are purchasing or refinancing. You can expect to pay between 2-5% of your home’s purchase price in the closing costs, but there are other fees involved that may surprise many buyers.
Though you assume the closing amount goes directly to the lender, it can account for a variety of services that were necessary to complete the transaction. Below is a list of just some of the fees you can expect to see in your bill.
- The appraisal: an appraisal is required to determine the market value of the property. These fees are often tacked onto the closing costs.
- The credit report: A credit report is necessary when applying for a mortgage, and though it is often only $15-30 added on, it may be an unexpected charge for some buyers.
- The survey fee: if you conducted a land survey on the property, the price might be added to the closing costs. A land survey is required to determine boundary lines, especially if you plan on building or adding onto the land.
- Your homeowner’s insurance: Homeowner’s insurance is required to protect your home from possible damages. The first year of your insurance is often paid at the time of closing.
If you are interested in learning more about Florida real estate closing costs, contact our team at Baron Bartlett, P.A. You can reach our attorneys by calling (904) 285-9993 to discuss your questions or concerns.