Buyer's Estimated Closing Costs (N.E. Florida)
To substantiate the value of the property, the bank will require an appraisal by a licensed appraiser. The fee for this service will vary according to the type of property and the appraiser’s fee structure. Estimate $250 to $500.
Typically, the bank requires a copy of the inspection report. The fee can range from $300 to $500 depending on the inspection company and the size of the house. This is usually paid at time of inspection.
Wood Destroying Organism (WDO) Inspection:
The bank will also require a copy of this inspection. The inspector is looking for any damage to the wood in the house caused by insects or water intrusion. The cost of this can vary from $75 to $125 and is usually paid at the time of inspection.
Mortgage Origination, Processing, Underwriting, Survey, and Closing Fee:
These fees can be listed separately or can be lumped together under one of the above headings. Your mortgage company will give you an estimate of these charges, if any.
Tax and Insurance Fee:
The bank may charge a one-time service fee to set up an escrow account for the payment of real estate taxes and home owner’s insurance. Typically around $100.
Flood Determination Fee:
The bank may charge a fee to verify whether or not the home is in a flood zone. Estimate $20 to $50.
The bank will run a credit check on the applicant. Estimate $25 to $50.
*NOTE: Most, if not all, bank fees vary from bank to bank and are negotiable; remember they do compete.
Documentary Stamps on the Note:
This is a State tax on the amount of the loan to be repaid. This tax is $.35 per $100 of the loan. For example, if the promissory note is $200,000, then the doc stamps tax on the note is $700.
This is a State tax on the mortgage that secures the promissory note. This tax is $.20 per $100 of the loan amount. For example, if the loan amount is $200,000, then the intangible tax is $400.
This fee is paid to the county in which the property is located and is approximately $10 per page. This fee is to record the deed and the mortgage in the public records.
Simultaneous Mortgage Title Insurance Policy:
While the seller will purchase owner’s title insurance for the property, the bank will require a simultaneous policy on the loan amount which is the responsibility of the buyer. For example, an estimate for the buyer on a $160,000 mortgage would be approximately $250.
Title Insurance Endorsements:
Depending on whether or not the purchase is in a planned unit development or in a condominium association, this cost will vary. Estimate $0 to $250.
Discount Points (optional):
This is an up-front charge by the bank of 1% of the loan amount to lower the interest rate by 1%.
Courier Fees (if needed):
If documents need to be sent by express or over-night mail. Estimate $50 per mailing.
Note: There is much confusion regarding pre-paids and closing costs. Pre-paids are expenses or items that the homebuyer pays at closing, before they are technically due. They are necessary to create an escrow account or to adjust the seller's existing escrow account. Pre-paids can include taxes, hazard insurance, private mortgage insurance and special assessments.