A real estate closing in Florida is far from a quick or inexpensive process. You'll have to sign several documents, and you'll have to pay closing costs that total thousands of dollars. The good news is, though, that once you've gone through the process, your new Florida home is now officially yours.
The Closing Process
Most real estate closings in Florida take place at the office of your title insurance company. Once there, you'll meet with your real estate agent, mortgage loan officer and real estate attorney to review and sign several important closing documents. Also present at the closing, in most cases, will be a representative from the title insurance company, the sellers of the home that you are buying, the real estate agent who is working with the sellers and the seller's real estate attorney.
Before you can complete your closing, you'll have to sign several loan documents to make the transfer of title complete. First, you'll sign your HUD-1 settlement statement. This statement provides you with an exhaustive list of the costs you're paying to close the home sale. You'll sign, too, your truth-in-lending statement, an important document that details the cost of your mortgage loan and the interest rate attached to it. The mortgage note, which you also must sign before the closing is complete, is a promise on your part to repay your mortgage loan. This paper also lists the actions that your mortgage lender can take against you if you don't make your payments. Finally, you'll also sign your deed of trust, a document that gives your mortgage lender a claim against your residence if you don't live up to the terms listed in the mortgage note.
Your Closing Costs
One of the more unpleasant parts of the closing process is paying your fees. In Florida, these closing costs can be quite high. The 2010 survey of closing costs conducted by the financial website Bankrate found that buyers in Florida paid an average of $3,987 in closing costs on a $200,000 purchase for a mortgage loan in 2010. These fees are broken into two types: those charged by your lender and those levied by third-party companies. In Florida, the average lender fees ran $1,237 on a $200,000 purchase loan in 2010, according to Bankrate. The average third-party fees came in at $2,751 in Florida, according to the same study.
Paying Your Fees
In Florida, you can pay your closing costs in two ways: You can cover them with a lump sum payment or you can roll them into your monthly mortgage payments. This second option allows you to spread out the pain of these fees over the length of your mortgage loan. You can take solace in the fact that Florida's closing fees are lower than they are in New York. Bankrate found that buyers in New York paid an average of $5,623 in closing costs on a $200,000 purchase for a mortgage loan in 2010, the highest in the country.