Central Florida Closing Costs
In the Orlando Florida area, both buyers and sellers have closing costs associated with closing the sale of a house. These fees are split between the buyer and seller. These are traditional closing costs, but closing costs can be unique to each closing. Be sure to review the contract for exact details on the closing costs.
Normal closing costs for sellers include. . .
- Documentary Stamps on the Deed
- Owners Title Insurance
- The Real Estate Brokerage Fee
- The Recording Fee for the Satisfaction of the Existing Mortgage (if any)
- Repairs
- Interest Prorations
- Prepayment Penalty (if any)
- Transaction Fees
Normal Buyers Closing Costs include. . .
- Mortgagee's Title Insurance
- Loan Discount (if any)
- Trets (tax service fee)
- Loan Origination Fee
- Document Preparation Fee
- Documentary Stamps on the Note
- Intangible Tax on the Mortgage
- Recording Fee, Deed
- Recording Fee, New Mortgage
- Credit Report
- Appraisal
- Termite Inspection
- Survey
- Inspections
- Prepaid Interest, Taxes and Insurance
Buyers closing costs tend to fluctuate a little depending on the lender. Not all have the above charges and some have more.
Lender's Good Faith Estimate
Buyers will receive a good faith estimate from the lender. This is an estimate of the buyers closing costs based on the loan officer's experience. It doesn't always include all closing costs. Sometimes there are closing costs that the lender did not know about at the time he/she made the good faith estimate. An example could be the transaction fee charged by most real estate companies. They vary from one company to another.
What is Title Insurance?
This article courtesy of Gary DeChellis
Watson Title Services
Title insurance is protection against loss arising from problems connected to the title to your property. It comes in two forms, an owner's policy and a lender's policy. The lender's policy protects the lender up to the amount of the mortgage, but it doesn't protect your equity in the property. For that you need an owner's title policy for the full purchase price of the home. In many areas, sellers pay for owner policies as part of their obligation to deliver marketable title to the buyer.
A frequently asked question is whether the lender policy indirectly protects me. The answer is no. Title policies are indemnity policies, they protect against loss, and a lender policy would only cover the lender's loss. The fact that the insurance company issued a policy to the lender indicates that the title has been searched and nothing amiss has been found, but no search is 100% dependable. That is why an insurance policy is issued.
Title insurance only protects against losses arising from events that occurred prior to the date of the policy. Coverage ends on the day the policy is issued and extends backward in time for an indefinite period. The owner's protection lasts as long as the owner or any heirs have an interest in the property.
Thinking about buying a home in the Central Florida Area? Call or text Lee at 407-421-1052 or you can email me at lee@leecameronrealtor.com
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