What are Closing Costs?
When it comes to purchasing a home, most people know that many components go into doing so, but are they aware of one of the most significant portions of the process? Homebuying costs continue beyond how much your budget is for the down payment of a home. There is a lot more that goes into the purchase of a home, which includes closing costs. Closing costs are expenses and costs charged by the title company and lender to finalize the purchase of a home. For a mortgage title to be transferred to a prospective buyer, fees, and items are included in the closing costs. The most common fees include the following:
- Appraisal Fee.These fees pay the appraiser who comes to the home to determine its value.
- Application Fee.The mortgage company charges an application fee to get the application filled out.
- Extra Deposit.Extra deposits are often required for homeowners’ insurance purposes.
- Attorney Fees. Although in Florida, you are not required to have an attorney present at the time of your closing, you can consider this option but remember; this will be an added expense to the process.
Although these are just a few expenses, more expenses can be accumulated into a homebuyer’s closing costs, but those closing costs will look different for everyone as many determinates go into them. We understand that closing costs can include many expenses, which can overwhelm people, especially if they have no knowledge of home buying. CGI Realty understands this and can help guide you through the entire process and ensure you receive fair and accurate closing costs.
Flood Certification Fee
Florida homebuyers are charged a flood certification fee not stated in the above fees. This fee is for a government-required document that will determine if the home you are purchasing is in a flood zone. If your home is in a flood zone, you must buy flood insurance to protect yourself from potential expenses that can arise in the event of a flood. The good news is that this fee is generally only $15 or less.
Do I Have to Pay for Closing Costs if I Buy with Cash?
If you plan on purchasing a cash home, you may not be required to pay inspection, appraisal, title insurance, or other varying fees. As previously stated, this is only sometimes the case and will look different for everyone.
Saving for Closing Costs
Creating a budget plan is an essential step to saving for closing costs. Opening a second savings account is always a good idea; you’d be surprised how much money you can accumulate when you continue to put it away and not touch it. Although CGI Realty can take the lead in your homebuying process, it never hurts to do some research for yourself. When you determine your budget for purchasing a home, consider that closing costs will be roughly 2% to 5% of the price you purchase the home for. If you don’t want any surprises at the end, you can ask your lender to lay out all expenses for you, including those of your down payment and closing costs. Sometimes, these final fees can be negotiated with the lender or seller of the home to help lower overall costs and expenses. CGI Realty will assist you in navigating these matters and vouch for you every step of the way.
CGI Realty is Here to Help
Don’t let closing costs discourage you; CGI Realty is here to help you in any way you need when purchasing a home. Even if you don’t know much about closing costs, our team of real estate experts is prepared to guide you toward success. Contact us today at (561) 507-0107 OR visit our website for more information.