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When you purchase a home, you not only need to have a down payment saved up, but you will need to factor closing costs into your budget. Florida real estate closing costs are the fees you pay to help facilitate the sale, and the amount you pay depends on the price of your home, lender requirements, and location. Below are some examples of how you can budget for your closing costs.

Choose Your Location

Since your location has a lot to do with the total closing costs, you want to ensure your location is not only in a suitable community but in an affordable area as well. Be sure to ask your real estate agent about the average closing costs in the area you are looking to live.

No Harm in Negotiating

Though you may not be able to control all aspects of your closing costs, you may be able to negotiate a few in your favor. For example, you have the right to choose the survey company used to evaluate the land. This allows you to shop around for a company that meets your budgeting needs instead of the one selected by the seller.

Shop Around for Loans

A critical step to saving on closing costs is to select the best home loan available to you. Some loans can increase after closing, so be sure to pay extra attention to all companies you are considering to get the best option.

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.