What are closing costs and what can I expect?
Closing costs are the cash monies you need to bring to the closing table on top of the price paid for the legal completion of your home in Florida. The good news is that the USA is the safest and most transparent country on the planet to own property and its closing costs are very low to most countries.
For the cash buyer, the sale price you agree on is all you pay with having no form of any purchase taxes on top of the agreed price. All cash buyers closing costs will be a contract settlement fee of around $500, County registrations of around $210 and that’s it for the legal closing costs.
For the buyer using a Florida mortgage and letting the rental income pay it for you, the legal costs are the same except the settlement fee will be around $600 due to the extra work involved in closing by the title company. As each mortgage cost is pertinent to you the buyer, the best way for knowing the exact costs to the mortgage company is to ask for a pre qualification now rather than when in Florida. When your mortgage high end capability is discovered then a full transparent list of all associated costs will be given to you. I can have that done for you free of charge so you know if you wish just contact me. As a guide, a home of $300,000 will cost you $1192 per month with a 30% deposit.
There will be prorations at closing with cash or mortgage which is money for your future use as an owner and is outside legal closing costs. I will cover that on my next Blog. Remember you are always to contact me on email@example.com if you have any other questions about closing costs or buying a property in Florida generally.