Buyer’s Closing Costs

Buyer’s Closing Costs for Palm Beach County & Boca Raton

Closing costs are fees charged by the lenders and third parties related to the purchase of a home in Palm Beach County Boca Raton, Florida. The closing costs depend on the amount of the mortgage, down payment and the loan program. Buyer’s closing costs are typically 2% – 5% of the purchase price of the home. These are fees paid in addition to the down payment on the home and the principle and interest payment on the mortgage. Most closing costs are paid at the time you close on your mortgage.

Federal law requires lenders to provide the Boca Raton home buyer with a good faith estimate (GFE) of what the closing costs on your home will be within three days of when you apply for a loan. This is just an estimate and the fees listed on the good faith estimate (GFE) can legally change by up to 10%.

Within one day of closing, the lender should provide the buyer with a HUD-1 Settlement Statement, which outlines the final closing costs. A buyer should compare the good faith estimate (GFE) with the HUD-1 Settlement Statement. Ask the lender to explain each item listed. Keep in mind that some fees on the closing statement are negotiable such as administrative and mailing costs charged by the lender.

Palm Beach County & Boca Raton Closing Costs Include

Title Closing Costs:

Lender’s Title Insurance (Title Company)
Owner’s Title Insurance (typically paid by seller in Boca Raton)
Settlement/Closing Fee $250-$500
Title Search $100-$300
Recording Fee for Mortgage & Deed $50-$200
Property Taxes Prorated (Title Company)
Home Warranty $375-$500 (if applicable)
Copy, Courier & Express Fee $50-$100
Survey & Flood Certification $200-$400

Lender Closing Costs:

Application Fee & Credit Report $300-$400
Document Preparation & Processing Fee $200-$500
Appraisal $300-$500
Discount Points
PMI/MIP Private Mortgage Insurance (if applicable)
Documentary Stamp Tax on Mortgage (rate of .35 per $100)
Intangible Tax on Mortgage (rate of .0020 x loan amount)

Home Inspection Costs:

  • Comprehensive Home Inspection $300-$500 (based on sqft)
  • Wood Destroying Insects/Organisms & Pest Inspection
  • 4-Point Insurance Inspection (typically included in Inspection)
  • Roof Certification (homeowners insurance discounts)
  • Wind Mitigation Certification (homeowners insurance discounts)
  • Asbestos, Chimney & Mold Inspection (if applicable)
  • Radon Inspection (EPA & Surgeon General Recommend Testing)
  • Lead-Based Paint Inspection (Homes Build before 1978)
  • Well Water Test & Septic Test (if applicable)
  • Termite Inspection Certification $75-$100

Buyer Pre-Paid/Escrow:

Homeowners Insurance (1 yr prepaid – Insurance Company)
Property Tax Escrow (up to 3 months – Title Company)
Homeowners Insurance Escrow (2 months – Title Company)
PMI/MIP (2 months in advance if > 80% LTV)
Flood Insurance (if applicable 2 months in advance)
HOA/Condo Fees (Title Company)
Annual Assessments (if applicable)
Mansion Tax (over $1M -1% of consideration)

If you would like to learn more about the process of purchasing real estate in Palm Beach County, Boca Raton or if you’d like to take a look at homes for sale in Palm Beach County, Boca Raton, contact Joy Mastropieri and Larry Mastropieri, both experienced Boca Raton real estate agents.