Closing Costs in Florida

The short answer

For most Florida buyers, closing costs run about 2–5% of the purchase price, though the exact number depends on your loan, the property, and what you negotiate. Some of these costs are set by the state and are the same everywhere; others come from your lender; and who pays which is partly local custom and partly up to your contract.

What's in a buyer's closing costs

Your costs fall into a few buckets:

Costs before closing

Not every cost of buying a home waits until closing day. Some expenses are paid during your inspection and loan periods, so it's important to budget for them in addition to your down payment and closing costs.

• Home inspection — a general home inspection evaluates the home's major systems and components and can help identify potential repairs or concerns before closing. Cost varies based on the size, age and type of property.
• Insurance inspections — your insurance company may require a 4-point inspection, particularly for an older home. A wind mitigation inspection may also help determine whether the home qualifies for insurance discounts based on features such as the roof, hurricane protection and construction methods.
• Specialty inspections — depending on the property, you may choose or be advised to obtain additional inspections for wood-destroying organisms (WDO/termites), septic systems, wells, pools, HVAC, roofs, plumbing, electrical systems or other property-specific concerns.
• Appraisal — if you're financing, your lender will generally require an appraisal to establish the property's value for lending purposes. This is often paid to the lender before closing or charged as part of your loan costs.
• Insurance deposit or premium — you may need to pay for or bind your homeowners-insurance policy before closing. In Florida, it's smart to start shopping for insurance early, since the home's age, roof, location and other characteristics can affect both availability and cost.

Keep in mind: inspection and appraisal fees are generally paid for services as they're performed. Most inspectors do not release the reports until you have paid for them. If the purchase doesn't close, you may still be responsible for these expenses.

Florida state taxes (if you're financing)

• Documentary stamp tax on the mortgage — $0.35 per $100 of your loan amount. Paid by the buyer.
• Intangible tax on the mortgage — a one-time tax of $2 per $1,000 of the loan (0.2%). Also the buyer's.

Title and recording

• Lender's title insurance — protects the lender; the buyer typically pays this when financing. When it's issued at the same time as the owner's policy, the additional premium is usually relatively small.
• Owner's title insurance — protects your ownership interest in the property. Florida regulates title insurance premium rates. Who pays for the owner's policy is generally determined by the contract and may follow local custom.
• Recording fees — fees charged to record your deed, mortgage and other applicable documents in the public records.
• Closing or settlement fee — the title or closing company will typically charge a fee for handling the closing, preparing and processing documents, coordinating funds and completing the transaction. The amount varies by company.
• Wire and other closing-service fees — additional charges may apply for incoming or outgoing wires and other services required for your closing.
• Mail-away or mobile notary fees — additional fees may apply if you cannot attend the closing as normally arranged and need documents sent to you to be mailed back via an overnight service and/or require an approved notary.

Other

• Survey — your lender or title company may require a current survey, particularly when specific title insurance coverage or endorsements are required. An existing survey provided by the seller may sometimes be accepted if it meets the title company's and lender's requirements. Even when a survey isn't required — including for a cash purchase — we generally recommend obtaining a new survey so you know the property's boundaries and can identify potential encroachments, easements or other issues that could affect the property or your title coverage. Depending on the survey company, you may need to pay up front for the completion of the survey. If the purchase doesn't close, you will still be responsible for the expense.
• HOA or condo costs — if the property is located within a homeowners' or condominium association, additional association-related fees and prorations may apply. These vary by community and can include items such as estoppel, transfer, application or other association fees.

Florida costs & customs worth knowing

Buying a home in Florida comes with a few costs and practices you may not see in national homebuying guides:

• Florida taxes your mortgage. If you're financing, Florida charges both documentary stamp tax and intangible tax based on the amount you borrow. That means a larger down payment — and a smaller mortgage — can reduce these particular closing costs.
• Title insurance customs vary by location. In North Central Florida, the seller traditionally pays for the buyer's owner's title insurance policy, while a financed buyer typically pays for the lender's policy. Other parts of Florida follow different customs. These aren't requirements, however — who pays is negotiable and ultimately determined by your purchase contract.
• Insurance can affect more than your budget. Florida's property-insurance market makes it especially important to obtain quotes early. A home's roof age and condition, construction features, prior claims, wind-mitigation features and flood-zone location can all affect the cost — or even availability — of coverage. If you're financing, you'll need acceptable insurance in place before closing.

Who pays what — and what's negotiable

As a rule of thumb in most of Florida:

• The buyer typically pays the mortgage stamp tax, the intangible tax, recording fees, lender fees, the survey, and prepaids.
• The seller customarily pays the deed's documentary stamp tax.

But "customary" isn't "required." Every one of these is allocated in your purchase contract and can be negotiated — and buyers can ask the seller for a credit toward closing costs as part of the offer.

More on asking the seller to contribute →

Ways to keep them down

• Put more down. The mortgage taxes follow your loan, so a larger down payment shrinks them.
• Compare lender fees. State taxes and title rates are fixed, but origination and lender charges aren't — shopping lenders is where you have room.
• Ask for a seller credit. In the right market, sellers will contribute toward your closing costs; your agent builds that into the offer.
• File for homestead. It won't lower your closing costs, but it lowers your ongoing property taxes once the home is your primary residence — worth doing right away.

How to get your real number

The ranges here are a starting point, not a quote. Once you apply, your lender gives you a Loan Estimate (within three business days) that itemizes your costs, and a Closing Disclosure before closing with the final figures. We can also walk through a rough estimate with you early — before you write an offer — so you know what to budget and what to ask the seller for.

Frequently asked questions