Closing costs refer to the fees and expenses that buyers and sellers incur to complete a real estate transaction. These costs are separate from the home's purchase price and are typically due at the time of closing, when the property officially changes hands.
1. Lender Fees (if financing)
Loan Origination Fee: Charged by the lender to process the loan (usually 0.5%–1% of the loan amount)
Credit Report Fee: Small fee to pull your credit report
Application or Underwriting Fee
2. Appraisal Fee
Typically $450–$650
Required by lenders to assess the home's value
3. Home Inspection Fee (optional but highly recommended)
Typically $350–$600 depending on the size of the home
Additional inspections (WDO/termite, roof, pool, etc.) may add to this
4. Title Fees
Title Search Fee: Ensures there are no legal claims or defects on the property title
5. Owner’s Title Insurance (Typically Paid by Seller)
Protects the buyer’s ownership rights against future claims, liens, or title defects that may arise after closing
In most Florida counties, including Central Florida, this cost is customarily paid by the seller, but it’s negotiable
6. Lender’s Title Insurance (Buyer’s Cost if Financing)
Protects the lender’s interest in the property until the mortgage is fully repaid
This is mandatory if you are obtaining a mortgage and is usually a buyer expense
7. Settlement/Closing Agent Fee
Paid to the title company or attorney handling the closing
Approximately $350–$600
8. Recording Fees
Charged by the county to record the new deed and mortgage
Usually $100–$200
9. Transfer Taxes (Documentary Stamp Tax)
In Florida, $0.70 per $100 of the sale price on the deed
Typically paid by the seller in most counties, but negotiable
10. Prepaid Costs
Homeowners Insurance Premium: First year’s premium paid upfront (varies, often $1,000–$2,000+ depending on home value)
Property Taxes: Prorated taxes based on the time of year
Mortgage Interest: Daily interest from closing date until the first mortgage payment
11. HOA Fees (if applicable)
Prorated Homeowners Association (HOA) dues
Possible HOA transfer or initiation fees
12. Other Potential Costs
Survey Fee: Often required by lender or title company ($350–$600)
Pest/WDO Inspection: If not included in general inspection ($100–$150)
Flood Certification (if applicable): Small fee to confirm flood zone status
For buyers in Central Florida, closing costs usually range from 2% to 5% of the home’s purchase price, depending on the type of loan, lender fees, insurance, and other factors.
