Buyer Education
Buyer’s Closing Costs in Florida
A clear breakdown of what buyers can expect to pay beyond the purchase price in a Central Florida transaction.
Closing costs typically run 2% to 5% of the purchase price for buyers in Florida. On a $400,000 home, that’s roughly $8,000 to $20,000 in addition to your down payment. Here’s a breakdown of what’s actually in that total.
Lender Fees
- Loan origination fee — usually 0.5% to 1% of the loan amount
- Application fee — typically $300 to $500
- Credit report fee — around $30 to $50
- Appraisal fee — $450 to $650 for single-family homes
- Discount points (optional) — 1 point = 1% of loan, reduces interest rate
- Underwriting fee — $400 to $900
Title & Escrow Costs
- Title insurance (owner’s policy) — Florida rates are set by statute; approximately $5.75 per $1,000 up to $100,000, then $5 per $1,000 above
- Title insurance (lender’s policy) — typically covered by the seller in Florida, but varies
- Title search — $150 to $400
- Closing/settlement fee — $500 to $800
- Recording fees — $50 to $150
Florida State & Local Taxes
- Documentary stamps on the note — $0.35 per $100 of loan amount
- Intangible tax on the mortgage — $2 per $1,000 of loan amount
- Property tax proration — you reimburse the seller for taxes already paid through closing date
Inspections & Pre-Closing Items
- Home inspection — $300 to $500 (strongly recommended)
- Wind mitigation inspection — $75 to $150 (can save significantly on homeowners insurance)
- Four-point inspection — $50 to $100 (required by some insurers on older homes)
- Termite/WDO inspection — $75 to $150 (often required for VA loans)
- Survey — $350 to $500 (for new lenders)
Insurance & Escrow Reserves
- Homeowners insurance — first year’s premium, paid at closing
- Flood insurance — required in designated flood zones (common in Central Florida)
- Escrow reserves — 2–3 months of taxes and insurance held by lender
- Private Mortgage Insurance (PMI) — if down payment is less than 20%
- HOA fees & transfer fees — varies by community; Baldwin Park, Butler Chain, and master-planned communities have specific requirements
Can Closing Costs Be Negotiated?
Yes. Seller concessions, lender credits, and strategic timing can significantly reduce what you pay out of pocket at closing. When I represent buyers, I negotiate fully on your behalf — including working to get the seller to cover some or all of these costs wherever the market allows.
FAQ
Common Closing Cost Questions
Who pays what — buyer or seller?
In Florida, customs vary by county. In most of Central Florida (Orange, Seminole, Osceola counties), the seller typically pays the documentary stamps on the deed, the title insurance premium for the owner’s policy, and half of the closing agent’s fee. The buyer typically pays for their loan costs, intangible tax, mortgage stamps, inspections, and appraisal.
Can I roll closing costs into my loan?
Sometimes. Some loan programs allow you to finance a portion of closing costs, though this increases your loan amount and monthly payment. FHA and VA loans have specific rules around this. Your lender can walk you through options.
What’s a seller concession?
A seller concession is when the seller agrees to pay a portion of the buyer’s closing costs. This is negotiated as part of the offer — typically capped at 3–6% of the sale price depending on loan type. It’s especially useful for buyers who have limited cash but qualify for financing.
How do I know the exact costs before closing?
By law, your lender must provide a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. Both documents itemize every fee. Review them carefully — and ask me if anything looks off.
Are closing costs tax-deductible?
Some are — mortgage interest, property taxes, and points can be deductible in the year you buy. Others (like title insurance) add to your cost basis. Consult a CPA for specifics.
Get a Personalized Cost Estimate
Every transaction is different. Contact me and I’ll connect you with a lender who can give you a real Loan Estimate based on your exact situation.