Purchasing a home is an exciting time in your life. You’ve saved your money, you’ve put endless hours into looking for the perfect neighborhood for your family, you’ve found your dream house, and now you’re more than ready to become a homeowner.
Grimaldi Law is a law firm concentrates on South Florida real estate law, and we want to prepare you for one component of home buying that you may overlook or underestimate: closing costs.
Closing costs in Florida are a key part of finalizing the purchase of your home. If you are investing in Miami real estate, it is especially important because Miami has the fourth highest closing costs of any real estate market in the country, according to a 2008 BankRate.com study.
So what are closing costs and how much will they run you?
Closing costs are exactly what they sound like – fees linked to the closing of a real estate property. There are generally 5 types of main closing costs that you will need to be informed about.
Documentary stamps on the deed are the most expensive closing costs, and you must pay them when you transfer the deed. In Miami they run $.60 per $100 of the home price. In most other counties, they run $.10 per $100 of the home price. Depending on the terms of your contract, you may be responsible to pay for this as the buyer of a property.
Documentary stamps on the mortgage will have to be paid to record your mortgage and run $.35 per $100 of the amount of money your borrowed.
Intangible tax on the mortgage is from the county and it’s about $.20 per $100 on the amount borrowed.
Recording fees will be paid to the county, and they are based on the number of pages in the documents that need to be recorded for your purchase. That’s going to run you $10 for the first page and $8.50 for each additional page. The amount of pages vary.
And finally title insurance, which is very important. It insures against mistakes or problems in the title process. The cost of title insurance varies based on the purchase price of the property and set by law. Unlike other insurance premiums, which must be paid annually, a title insurance premium is paid one time only at closing.
There are a few more costs, such as service fees, inspection fees and administrative fees, but those should be discussed with your lender.
When you are ready to purchase a home, having a trusted real estate agent is key but having a reliable and knowledgeable attorney on your side is also essential. Many of these fees can be negotiated to be paid by the seller at closing. Grimaldi Law is ready to prepare you for the South Florida closing costs in your future and we’re excited to get you into your new home!
About the Author: Melinda Grimaldi is an attorney in Hollywood, Florida, whose practice is concentrated in the areas of commercial and residential real estate and estate planning law. She can be reached at (954) 491-8707 or firstname.lastname@example.org
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced real estate attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.