Categories
Uncategorized

What are Property-Related Fees?

Buying a home can be shockingly expensive, especially once the Florida real estate closing costs are determined. There are many different fees associated with these costs, such as property taxes, insurances, title fees, and more. The total amount you pay will vary based on what is included in the prices. Below is what you can expect to be included in the property-related fees of your closing.

Property-Related Closing Cost Fees

The appraisal fee: Included in your closing costs will be the fee for the appraisal of the property. It is essential for a lender to ensure the amount being borrowed is worth as much as the property being purchased. This will let them know that the amount you requested is justified and that it can recoup the home’s value should you default on the loan. Certified appraisers on average charge between $300 and $400 for the appraisal.

The home inspection fee: many lenders require a home inspection, even more so if the mortgage is government-insured. Before lending you a lot of money for the property, the bank wants to make sure the structure is in excellent, livable condition. If the inspection uncovers some significant issues, you may be able to negotiate a lower price or back out of your contract altogether. An inspection will generally be $300 to $500 on the closing costs.

Categories
Uncategorized

How to Budget for Closing Costs, Part 1

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.

Categories
Uncategorized

Hidden Fees to Watch Out for in Your Closing Costs

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.

Categories
Uncategorized

What Are Closing Costs?

Closing costs are additional fees associated with the purchase of a home. These costs are paid at the end of a real estate transaction, at the time when the title is transferred from the seller to you. It is important to factor these costs into your home budget, as it will help you ensure you have the amount you need to purchase the property you are after.

Closing costs will vary depending on where you live, the property, and the type of loan you take out for the transaction. Generally, a closing cost will be around 2-5 percent of the home’s purchase price. If you purchase a house that costs, $150,000, you may pay anywhere from $3,000 to $7,500 in closing costs.

You should receive a closing disclosure statement from your lender approximately three business days before closing. This statement will outline all of the closing fees associated with your transaction. Some of these fees can be negotiable, and others may be entirely unnecessary charges added on. You may be able to find another lender who can provide lower closing fees than the one you are currently using.

If you need assistance with Florida real estate closing costs, our team at Baron Bartlett, P.A. is here to help. Our attorneys will help you ensure your real estate transaction is completed smoothly and according to your budget. Give us a call today at (904) 285-9993 to get started.