With the housing market varying so much across the country, many people assume that mortgage interest rates vary greatly from state-to-state as well. While there may be slight variations in mortgage interest rates, they are generally the same. Consequently, Florida mortgage rates are as competitive as those in any other state.

There can be, however, significant differences in closing costs and procedures across the nation. So, when you apply for your mortgage, don’t forget to factor in closing costs or your hard work to find a competitive Florida mortgage rate may be tempered by unforeseen closing costs.

What Closing Is

Before you try to discern the differences in closing costs, you must first understand what “closing” is. Closing is the final step before you take ownership of your home. During the closing, you will sign mortgage loan documents, transfer funds (escrow, insurance, etc…), and receive the deed to your property.

Closing Costs

Because of different closing procedures and low title insurance costs, Florida closing costs—at around $3,200 –are the fifth highest in the nation. Typically, closing costs cover the following items:
o Lender Fee
o Title Insurance
o Title Search Fee
o State Mortgage Taxes
o Settlement Charge
o Escrow
o Settlement or Closing Fee
o Attorney’s Fee
o Flood Insurance Fee
o Home Warranty Fee
o Home Inspection Fee
o Survey Fee
o Notary Fee
o Recording Fee
o Interest
o Lender Fees/Charges

Closing in Florida

Closing procedures vary as much as closing costs. Whether you are a first-time homeowner—or a newcomer to Florida, knowing what to expect at closing will make the process much easier and less stressful.

In Florida, title companies and attorneys handle closings. Buyers pay the escrow and closing costs, while county custom determines who pays for the title insurance. Your real estate agent or lender can provide you this information; so don’t be afraid to ask them. Sellers pay the documentary tax.

No matter what state you buy your home in, having a general idea of the closing costs and procedures specific to your area will ensure that you are well prepared for the final step in purchasing your home. Remember, you spent a great deal of time finding the best mortgage rates in Florida. Don’t let unexpected closing costs ruin what can be a gratifying and rewarding experience—buying your home.