When buying a home, you can expect to pay closing costs between 1% -3%. Typically, closing costs are the final payments made when a home is transferred from one owner to another. It represents the consummation of the sale, accompanies the final signing of documents, and allows mortgage funds to be released. Let’s break down the most common homebuyer closing costs in Tampa Bay!
Loan Origination Fees
Unless you have the cold hard cash to buy a home in Tampa, loan origination fees will likely be the first closing costs you’ll incur. The fees are what your lender charges you to open and process your mortgage account. It entails everything from setting up your loan application, underwriting, and preapproval to processing your funding at closing. You can expect to pay approximately 0.5%-1% of the loan amount as a loan origination fee.
Home Inspection and Appraisal
A home inspection will uncover any issues with a property, such as foundational or structural damage, and may cost you between $300 and $500. Conversely, your lender will need to know that they’re lending you money for a solid, worthy investment. As such, they’ll request a home appraisal to estimate the true value of your home. In Tampa Bay, home appraisals cost $500.
Title Search and Insurance
A title search verifies that the title of the property has no tax liens or claims and is owned by the seller. Whereas title insurance provides protection if someone later sues and says they have a lawsuit against the house. A title search may cost you about $150, while a title insurance policy could cost you $5.75 per thousand for purchase prices up to $100,000.
Be Aware of Common Homebuyer Closing Costs in Tampa Bay!
Ultimately, closing costs in Tampa Bay can add a significant amount to the total home price and should be anticipated before closing a deal. However, note that very few elements of the closing costs are set in stone – you can negotiate the costs! Our real estate agents are here to help you throughout the homebuying process – so, call us today!