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99 South Alcaniz Street, Pensacola, FL 32502, Toll Free (877) 456-6333
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Closing Costs
When purchasing a home or investment property, you will pay
"Closing Costs". You may even have a down payment depending upon the
type of loan. These costs include the "points" you pay on your
mortgage loan, title and hazard insurance, title search, legal fees,
and other charges imposed by the lender. These charges vary from
lender to lender and the services they offer, but they usually
represent a considerable amount of money. This is one more reason why
you need a Real Estate Professional to assist you along the way.
When you begin your search for a new home in the Pensacola Area, your
REALTOR® can give you information and advice regarding your closing
costs. You can use this information as a guideline. When you apply
for your loan, the lender is required to provide you with a "Good
Faith" estimate of the closing costs. This figure is usually very
close to the actual amount. Your Sale and Purchase Contract will have
the price and terms of your new home spelled out. As the closing
approaches, you want to know the final figure for the check that you
will bring to the closing table.
As
a Rule of Thumb
Closing costs can be paid by either the buyer or the seller, as per
their agreement. The standard Real Estate Contract explains who is
responsible for payment of which costs. These can be changed when
negotiating (except when the buyer is obtaining FHA and VA financing).
Normally, Seller pays Documentary Stamps on the Deed. Many people refer to
this as "Transfer Tax" to the State of Florida. This is based on the
sales price of the individual property, and is equal to $.70 on every
$100 of the purchase price. To find the total "Doc Stamps".
The Seller also usually pays for the new title policy. Although title
insurance rates are regulated by the State of Florida as to the
minimum you can be charged, all title insurance companies may increase
this rate to cover the expenses involved in preparing and disbursing
closing papers and funds. There is also an additional charge (usually
$50 to $100) for a Court Search Fee.
The Buyer usually pays for the recording of his own deed. All other
charges that the Buyer is responsible for are required due to his new
financing. The new lender will require things such as Termite
Inspections, Surveys, Appraisals, etc... These then become the Buyer's
responsibility. Other items the Seller may be responsible for are Tax
Prorations, Pay-off of Current Mortgage Loans, and FHA/VA Closing
Costs.
I am here to help you understand what the process is. Work
with one of Pensacola's finest Real Estate Professionals today! Call me
anytime if I can help you at 850-341-4489 or
email me!
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