Closing Costs
Loan Process
Closing Costs
Closing costs are fees paid at the end of the mortgage process when the loan funds and ownership transfers. In Florida, buyers typically pay 2–5% of the loan amount in closing costs.
Lender Fees
Origination fee: 0–1% of the loan amount. Discount points: optional, paid to buy down your rate (1 point = 1% of loan amount = approximately 0.25% rate reduction). Underwriting fee: $500–$1,500. Application fee: varies. Processing fee: $300–$900. These fees are disclosed on your Loan Estimate within 3 business days of application.
Third-Party Fees
Appraisal: $400–$700 in Florida. Title search and title insurance: $1,000–$3,000 (higher for larger loans). Survey: $300–$600. Home inspection: $300–$500 (not required by lender but strongly recommended). Pest inspection: $75–$150. Attorney fees (if applicable): $500–$1,500.
Prepaid Items and Escrow
Prepaid interest: interest from closing date to end of month. Homeowners insurance: typically 12–14 months prepaid. Property taxes: 2–6 months into escrow. HOA dues: varies. These are not fees — they're payments for items you'd pay anyway. They're collected at closing to establish your escrow account.
How to Reduce Closing Costs
Negotiate seller concessions (seller pays some of your closing costs). Ask about lender credits (take a slightly higher rate in exchange for lender paying closing costs). Shop for title insurance and other third-party services. Ask about no-closing-cost loan options. Compare Loan Estimates from multiple lenders. We will walk you through every line item on your Loan Estimate.
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