Florida closing costs explained: who charges what and why
Closing costs come from several different parties. Knowing the categories makes your Loan Estimate far easier to read.
Costs come from several places
Closing costs are not one fee. They are a collection of charges from the lender, the title company, government offices and others, plus money that is set aside up front for taxes and insurance. Your Loan Estimate groups them so you can see where the money goes.
The main categories
- Lender charges, which can include origination charges and any points you choose to pay.
- Third-party services, such as the appraisal, credit report, survey and title services.
- Government charges, such as recording fees and, in Florida, documentary stamp taxes and intangible taxes on certain loans.
- Prepaids and escrow, which fund the first part of your homeowners insurance and property taxes.
Florida-specific items to ask about
Florida has documentary stamp tax on the note and on the deed, and an intangible tax on the mortgage. Title insurance rules in Florida are also set by the state. Your Loan Estimate and Closing Disclosure will show these, and a licensed originator can explain each line.
Ways costs can be handled
Depending on the loan program and the purchase contract, some closing costs may be negotiated with the seller or covered through other means. What is allowed varies by program and situation, so ask before you write your offer, not after.
Compare line by line
When you compare lenders, compare the Loan Estimates, not just the headline numbers. Two offers that look similar can differ in the services they include. There is no obligation to ask us to take a look.
Questions about your situation?
Tell us about your loan and a licensed originator will follow up. There is no obligation to ask.