The overlooked costs associated with buying a home
Buying a home comes with a few, often overlooked costs. For example, first-time homebuyers often don’t consider closing costs when planning to purchase a home. This oversight can be shocking since closing costs are usually equal to the required down payment.
Fortunately, in Florida, closing costs are more reasonable than in other states. Closing costs are the fees you pay when you purchase a home. They include mortgage loan processing fees, home appraisals, inspections, surveys, title searches, and taxes.
If the closing does not occur for some reason, you will still be required to pay for services such as the inspection and appraisal since these services were completed in good faith.
Both buyers and sellers pay closing costs, with the seller paying for the title policy. However, the buyer pays the lion’s share. Costs vary depending on the price of the home and the location of the property. In Florida, a buyer’s closing costs average 3 to 5 percent of the mortgage loan amount and must be paid upfront. Sellers pay approximately 8 percent of the home’s purchase price. The rate is higher because it includes the real estate agent’s commission.
Buyer closing costs:
Prorated homeowner’s charges and approval fees
Survey fee
Appraisal fee
Credit report
Loan origination fees
Home inspection
Recording fees
Wood Destroying Organism inspection
You can use a mortgage calculator to determine closing costs, but this is just an estimate. You cannot calculate your exact closing costs until you have identified a specific home. A qualified title agency can ensure a smooth and professional closing. Licensed Florida attorneys founded Fleet Title to bring high-quality, fast, and efficient title services to the residential and commercial real estate markets throughout Florida. Our attorneys have closed real estate transactions for over 25 years. At Fleet Title, you will benefit from our experienced attorneys at the cost of a title agent. To learn more about the services offered in Vero Beach, visit fleettitle.com, call (772) 224-3338, or email them at info@fleettitle.com.