What Are Common Closing Costs For Buyers? | Delray Beach Real Estate

closing costs delray beach

One of the benefits of working alongside a Champagne & Parisi Realtor is knowing they are part of an extensive network of dedicated lenders, insurers, contractors, attorneys, and bankers. Every Realtor shares information and receives training from our professional partners, ensuring every angle of the deal is covered and our Realtors are always in the know and up to date. To that end, buying real estate in Florida poses many challenges for out-of-state and international home buyers, including the myriad of closing costs, wrinkles in insurance, appraisals, and so much more. To help learn a bit more about the number of closing costs commonly associated with Boca Raton Real Estate.

Appraisal Fee

Your lender will order an appraiser from a neutral third party to determine the value of the property. This is one of the most important pieces of closing a deal, as it both protects the lender from a subpar loan, but also yourself from overpaying for a deficient home.

Home Inspection

Inspections are different from appraisals in the sense that home inspectors are looking for functional problems more intensely, while appraisers are seeking to apply these findings to the overall valuation. Home inspections can include air duct, electrical, structural, pest, and paint to name a few. 

Application Fee

Some lenders will charge a fee to process your request. This nonrefundable fee can be used in some cases as a deposit towards other closing costs, but in no way will be returned, even for a rejected loan.

Attorney's Fees

To protect the immediate transaction and to avoid subsequent litigious action, some states require a present attorney to coordinate the closing and draw up transfer paperwork. Attorney's fees cover the cost of this service.

Prepaid Interest

Your lender may expect you to pay accrued interest that accumulates between the closing date of your loan and the first mortgage payment upfront. This amount depends on the premium, interest rate, closing date, and period between closing and mortgage payments.

Loan Origination/Underwriting Fee

The loan origination, or underwriting fee covers the cost of processing and underwriting your loan. Origination fees cost around 1% of the total home price, and will show up under "origination charges" on your loan estimate.

Property Taxes

Some lenders require the home buyer to pay up to a year's worth of property taxes upfront. Use public records and your home's appraisal value to determine a rough estimate of your expected property taxes.

Title Search Fee

Title Searches are conducted to look for claims on your desired property. These can include liens, bankruptcies, or unpaid back taxes that impact the totality of the deal. In most states, the title company will handle this part of the job, while attorneys cover the task in other states. 

Lender's Title Insurance

Unlike an ongoing premium, home buyers only need to cover this cost at closing, hence its categorization as a closing cost, rather than an insurance payment. Lender's Title Insurance repays the bank if you lose your home due to a title claim, protecting them from mistakes made by the home buyer.

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