Understanding Mortgage Closing Costs in Florida

Your down payment is only one part of the money needed to buy a home. Closing costs include charges for obtaining your mortgage and completing the transaction. You may also need funds for prepaid expenses and an initial escrow deposit.

Platinum Advantage Mortgage helps you understand these amounts and compare your financing options.

What costs should you expect?

Your costs depend on the loan program, property, purchase contract, service providers, and closing date. Common items include:

Loan costs
• Lender origination, underwriting, or processing charges.
• Borrower-paid mortgage broker compensation, if applicable.
• Discount points, if you choose an available option that lowers the interest rate.
• Appraisal and credit report charges.
• Loan-program fees or mortgage insurance charges, when applicable.

Title and settlement costs
• Settlement or closing services.
• Title searches and title insurance.
• Survey charges, when required.

Government charges
• Recording fees.
• Applicable Florida documentary stamp and nonrecurring intangible taxes.

Prepaid expenses and escrow deposits
• Interest covering the applicable period around closing.
• Homeowners insurance premiums and flood insurance, if required.
• Property taxes, insurance, and other amounts collected to establish an escrow account, when applicable.

Other property-related costs
• Inspections, association charges, or other expenses required by the contract or transaction.

Not every charge applies to every loan. Some expenses are paid before closing.

Who pays these costs?

The purchase contract, applicable requirements, and local practices help determine which costs are paid by the buyer or seller. We review the allocation for your transaction rather than assuming every charge is your responsibility.

Seller contributions may help cover eligible costs, subject to the contract and loan-program limits.

Lender credits may also offset eligible closing costs. Some involve a higher interest rate; others may be promotional incentives. Compare the upfront benefit with the loan’s longer-term cost.

Purchase closing costs generally cannot simply be added to your mortgage balance. Financing certain costs may be permitted under specific programs or refinance arrangements.

When will you receive a Loan Estimate?

For most consumer home purchase and refinance mortgages, the lender must deliver or mail a Loan Estimate within three business days after receiving the six required application items: your name, income, Social Security number to obtain a credit report, property address, estimated property value, and requested loan amount.

Supporting documents are not required before the lender issues the Loan Estimate. The estimate shows proposed loan terms, projected payments, closing costs, and estimated cash to close. It is not a loan approval.

Closing costs vs. cash to close

Closing costs and cash to close are different.

For a home purchase, cash to close generally includes your down payment and closing costs, adjusted for your earnest-money deposit, seller or lender credits, and other transaction adjustments.

We help you review the figures so you understand what has already been paid and what remains due.

Review your final figures

For most mortgages covered by these disclosure requirements, you must receive a Closing Disclosure at least three business days before closing. Compare it with your most recent Loan Estimate and ask about any differences.

Questions about your purchase or refinance?

Call Platinum Advantage Mortgage at 407-341-4313 or email rjolley@platinumadm.com. We serve borrowers throughout Florida.

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