Home Buyer Closing Costs Explained
Closing costs are those costs that relate directly to the closing of your loan. In general, the costs are similar no matter which lender you uses or which area you buy in: Ponte Vedra Beach, Nocatee, St. Johns County, Marsh Landing, Plantation Oaks, etc.
The majority of the cost go to pay third parties who have performed a specific transaction related to the loan. These fees include items such as title endorsements or private mortgage insurance or to the fees imposed by the State of Florida on mortgage financing.
Average Closing Cost You Will Pay:
$200 Recording Fee of Note, Mortgage & Deed
.35% Note Stamps based on Mortgage Amount
.20% Intangible Tax based on Mortgage Amount
$55 Credit Report
$25 Courier/Wire Fee
$250 WDO Inspection
$425 Home Inspection
$75 Tax Service
$175 Simultaneous Title
$250 Title Insurance Endorsements
$400 Doc Prep
$450 Underwriting Fee
So that is $2,280 plus .55% of your mortgage for just closing cost
Prepaids - funding of your escrow account for your lender
14 Months of Insurance
4 Months Property Taxes
*If you buying in a CDD community then you will be paying for the portion of the CDD from January 1st to closing date.
Loan Cost, Closing Cost and Settlement Cost
The loan cost and closing costs might refer to your actual closing or finalization of your loan, but it is often used in reference to your settlement costs. The settlement is the finalization of your purchase of real estate property. The fees associated with this sale are referred to as your settlement costs. Your settlement cost will be detailed on your HUD-1 statement, often referred to as your Settlement Statement.
Home Buyer's Closing Cost
Your closing costs include a number of different fees that are all associated with your financing of the purchase of the property. These typically include your origination fee, recording fees, points, the cost of the title insurance, title insurance endorsements, attorney fees, and the payment of private mortgage insurance on the home. Closing costs might also include other fees specific to your particular lender or due to other circumstances.
Title Insurance in Northeast Florida
Northeast Florida is a little different then the rest of the country in that Sellers typically pay for the title insurance cost on a purchase transaction. For this reason the Seller typically picks the closing agent or closing attorney and is responsible for those associated cost. However, if you are refinancing your home then you will be responsible for the title insurance.
There is a way to save on title insurance cost if you had bought the property within the past 3 years or refinanced the home with in the past 3 years. You should see if you can save money this way.
The Seller Doesn't Have the Same Closing Cost
The seller and yourself will both have settlement costs to pay at the settlement. The amount that you must pay are not identical due to the fact that you each have certain expenses that are specific to your particular position as buyer or seller. Sometimes, it is prearranged prior to the closing for the seller to pay some of your costs as Buyer.
The Good Faith Estimate Shows Your Closing Cost
Settlement costs typically include the down payment, the closing costs, the payment or repayment to the previous owners of real estate taxes, charges for recording the documents, pre-paid interest, and escrow reserves for homeowner’s insurance. Closing and settlement costs are always listed on the GFE or Good Faith Estimate that the lender is required to provide to you, the borrower. This is typically provided at the time of your loan application.
Buyer's Expense Estimate will also show Your Closing Cost
In addition, your Realtor will provide you with an estimate of your expenses at the time of writing your purchase offer. This estimate will include best guesses for the charges the lender will be charging you for. The lender's cost include document preparation, processing fees and credit report.
Don't Overpay on Closing Cost | Pay Only What You Are Suppose To
Save money by putting the negotiating and financial skills of the Phyllis Frankel Realty Group at your disposal. We will make sure that you don't pay for anything you are not suppose. First we will vigorously review the offer to make sure that your closing cost are structure to meet your financial situation. We can get the Seller to pay for some closing cost if you rather put your cash toward other uses.
Then before closing we will review the closing statement to make sure the closing company didn't make any mistakes that will cost you money. You could end up paying more in closing cost through mathematical error or improper reading of the contract by the closing company. You would be amazed at the credits and other monies that were supposed to be given to the buyer at closing that were not on the closing statement upon on first review.
Contact the Phyllis Frankel Realty Group at 1-800-999-0245, 904-273-0125 or 904-732-5530 to put one of our agents to work for you.
Home Buyers Guide