When you purchase a home, paying for a large down payment is usually at the front of your mind. However, this isn’t the only large expense that you should prepare for. Most individuals will pay between 1% to 5% of the home’s purchase price just in closing costs. In Jacksonville, the median listing price for a home is approximately $210,000. This means that you can expect to pay $2,100 and 10,500 in closing costs alone.
Here are some common closing costs that you will |see.
Many of your closing costs will cover various lender fees. These are fees that pay the cost of processing and receiving your home’s financing. These fees will vary depending on your particular lender, your loan amount, and even your location. Several lender fees that you can expect to pay include:
- An origination fee
- Processing Fee
- Underwriting Fee
- Application Fee
- Lock-in Fee
Credit Report Fee
When you apply for a mortgage, one of the first things your lender will do is pull a credit report. Unfortunately, many credit reporting companies charge for a detailed and thorough report — which your lender will need.
An appraisal will tell you and the lender your home’s value. The bank will not provide any financing that is more than the actual value of your home. In many situations, the lender will hire an appraiser and you will cover their charges. These fees will vary but you can expect to pay several hundred dollars for this report.
Some states require that you work with a lawyer to finalize the home-buying process and ensure all legal details are taken care of. However, Florida is one state that does not require that you hire an attorney to help you through the process. But, it is still a wise decision. An attorney can help you throughout the home-buying process and ensure all legal matters are taken care of properly. But, keep in mind that you will need to pay all attorney’s fees, which can quickly add up.
A few additional closing costs that you can expect to pay in Florida include:
- Recording fees
- Tax services
- Wire transfers
- Title insurance
- Postage and courier fees
- The first year of homeowner’s fees
If you have any questions about closing costs, the home-buying process, or you are ready to take the jump and buy a home, give me a call today.