How to Estimate Closing Costs

Video Transcript

"How to estimate your closing costs is very important when purchasing a home. I'm Richard Blake and I'm here to explain to you how you can estimate your closing costs. There's numerous different closing costs involved when purchasing a home. You are going to have costs such as your title insurance, all of your mortgage fees, home inspections, surveys, appraisals, several different items. What I can recommend, the best I can recommend to you is to contact whoever your mortgage broker is, whoever is going to do the loan for your property and have them break down the costs for you as they are all going to differentiate a little bit depending on who your banker or who your lender is. Some costs that are going to be included in all of the different transactions are going to be your home inspection for example. In the State of Florida, generally our home inspections depending on the house size is between three and four hundred dollars. You are also going to want to do pest inspections which can be anywhere between fifty and a hundred and fifty dollars. An appraisal may be anywhere between three and five hundred dollars. Again, depending on the size of the property as well as your title insurance is going to differentiate depending on the size of the property as well. What you want to do is when you locate the property that you are interested in or you have chosen a subject property. Take the address, take the tax records, that sort of thing to your local title company or whoever is going to be doing the closing for you or just the local title. They don't have to be doing the closing for you actually. Just someone that is local in the area that can break down the costs for you. They will be able to give you an exact number of what those closing costs will be. Do the same thing with your mortgage broker or your lender. They are going to be able to break down their specific costs of what the loan is going to be. Generally they are going to include the appraisal, the survey, other items such as that and then your real estate agent is really going to be the one that is going to be taking care of the inspection period and the due diligence period and all the costs that are involved during that time. Again this is just a way to estimate some of your closing costs. I recommend that you talk to each professional in those different departments and have them break it down for you on a unit basis. I'm Richard Blake. Thank you for your time and have a great day."