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Costs of Buying A Home
Contract Price: This is the price you and the seller have agreed to in the purchase contract.
Down Payment:
This is the earnest money that you have paid up front as a part of the purchase contract.  The down payment is held by an escrow agent, not by the seller of the property.  In most cases should the contract not go through to closing the down payment will be refunded to you.
Inspection Fees:
It is always wise to hire a professional, certified home inspector to make sure you don't get any surprises after closing with unplanned repairs.
Appraisal Fees: 
If you are financing your home purchase the lender will generally hire a certified appraiser to make sure the value of the home is at least equal to the contract price to protect their investment in the mortgage.  Should the appraisal not meet the contract price you generally have the option of cancelling the contract or making up the difference in cash.
Survey Fees: 
Especially a good idea whenever you think there have been new structures, even fences, erected on the property you are purchasing or even the adjoining properties.  
HOA Fees: 
Sometimes a homeowners association will charge a transfer fee whenever a home in the association is sold.  In addition you will be responsible for the pro-rata share of any homeowners dues based on the HOA billing period.
Propety Taxes:
  Property taxes in Florida are charged in arrears on an annual basis with January 1 as the start date.  From January 1 to the closing date the seller is responsible for paying the taxes.  From the closing date to December 31 the buyer is responsible.
Non Ad Valorem Assessments: 
These are fees generally charged by the county or your municipality for services rendered, like garbage collection.  In Florida most municipalities start their fiscal year on October 1.  Like property taxes above you and the seller will responsible for your pro-rata share based on their billing period.
Homeowners Insurance:  In Florida it is always a good idea to get a homeowners policy binder as soon as possible after the contract has been successfully executed.  Underwriters will not write new policies for homes whenever a named tropical storm or hurricane is approaching.
Loan Origination Fees: Each lender charges different fees to process your mortgage loan.  It is always a good idea to shop with more than one broker to make sure you are comparing apples to apples.
Private Mortgage Insurance:  This is an insurance policy charged to borrowers whenever the amount of the down payment is less than 20%.
Closing Costs:  This is a fee charged by the title/closing company and may be paid by either the buyer or seller, generally depending on who selected the company.
Documentary Tax on Mortgages:  This is a tax charged in every Florida county on new mortgage liens recorded against real property.
Recording Fees:  Generally a small paperwork processing fee charged by your county.
Escrowed Reserves:  With most mortgage companies they may require three months or more of taxes and insurance as a reserve against future bills.
Brokers Commission: Most major real estate brokers now charge both the buyer and seller a small commission fee for handling the transaction.  This fee is paid to the broker, not your real estate agent.  Your real estate agent is paid a proportional share of the commission that is paid by the seller of the property.
DISCLAIMER:  The above list is design to acquaint you with many of the costs of purchasing a new home and is not meant to represent a complete list.  Fees may vary from one transaction to the next.

 

 

 

 
 
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