Understanding closing costs and escrow

Common buyer closing costs

• Loan origination and underwriting fees
• Appraisal and home inspection
• Lender's title insurance and settlement fee
• Florida documentary stamp tax on the note (0.35%) and intangible tax (0.2%) on the mortgage
• Recording fees
• Prepaid property taxes, homeowners insurance and HOA dues

Escrow basics

After your offer is accepted, your earnest money deposit goes to a title company or attorney who holds it in escrow. They run the title search, collect documents, prepare the settlement statement and disburse funds at closing.

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