What are closing costs?

Closing costs are fees associated with the purchase of a residential property that must be paid during the real estate transaction process. In Florida, closing costs are typically divided between the buyer and the seller. Common closing costs that the buyer may pay include title insurance, appraisals, loan origination fees, and prepaid taxes and insurance. The seller may be responsible for the prorated property taxes, transfer taxes, documentary stamps, recording fees, title insurance fees, and real estate commissions. Closing costs vary depending on where you are located in Florida, and can range from approximately 1-8% of the purchase price. Additionally, there are many variables that may affect the final costs such as the type of loan, types of insurance, and legal fees. All of these can be discussed with the lender and real estate agent involved, as well as with the title company that will be preparing the final closing documents. When closing on a property, it is important to read all closing documents before signing, as well as to confirm that the closing costs are accurate. It is also wise to ensure that any applicable credits and/or escrow payments are included in the closing costs. Finally, all parties should be aware of any fees that may pop up in the future, such as HOA fees, unpaid taxes, or repairs that need to be done to the property.

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What are closing costs?

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