Getting ready to purchase a home is HUGE. While you’re probably aware of all the hoops you’ll have to jump through, you might not know about closing costs.
Closing costs are the fees charged for services performed during the home purchasing process. You pay these fees at closing. Closing is the final step of the loan process where you (the buyer) and the closing officer (the seller) sit down to have one last meeting. At this meeting, you’ll review the legal documents provided in your loan package and sign off in black or blue ink. This step is extremely important, as it is the final confirmation of the loan terms as discussed with your lender.
Closing costs vary based on the property, where you live, and the loan you choose. The following are a few of the most common fees you may see.
Again, closing costs will not be the same for everyone as they vary by region. On average, most home buyers typically pay about 2% to 5% of the home purchase price in the state of Florida. For example, if the home costs $250,000, you might pay between $5,000 and $12,500 in closing fees.
While you might be able to avoid some closing costs, you definitely can’t avoid all of them. Here a few ways to save on closing costs:
Your lender will provide you with an estimate of your closing costs at the beginning of your application process. This will allow you the chance to shop around to find the best lender and deal for you.
After finding a broker and going through the loan process, you will receive a closing disclosure (which is the final closing cost total) at least three business days prior to closing. This is your chance to make sure that everything looks right. If you have any questions or find a mistake, you’ll still have time to contact your broker.