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Closing Costs – Buyer

May 18, 2018 Real Estate Reports

Typically, Buyer’s can expect to pay between 4-6% of the purchase price in closing fees assuming that the Buyer will be purchasing the home with a mortgage. If the Buyer will be paying cash for the property, the closing costs will be a bit less.  Listed below are some examples that a Buyer would be responsible for.  Some fees would apply to cash deals and some would apply to both cash and mortgage purchases.

Closing Costs

  • Survey Fee – Charge to verify property boundaries.
  • Appraisal Fee – Paid to appraiser to confirm home’s fair market value.
  • Origination Fee – Payment to lender to evaluate your credit and underwrite and process loan.
  • Prepaid Interest – Covers mortgage interest due between date of closing and first mortgage payment.
  • Flood Certification Fee – Covers cost to determine if home is in federally designated flood zone.  If it is, the lender will require you to purchase flood insurance.  Some lenders also charge a separate flood monitoring fee to check for flood map updates.
  • Initial Escrow – Lender may require first two months of next year’s homeowners’ insurance, flood insurance and property taxes to build up reserve.
  • Prorated Property Tax – Covers property taxes from date of closing to end of tax year.

 

For additional information, please click on the link below and it will take you to The Florida Realtors Website. Closing Costs