In Florida, home buyer closing costs can add up to more than $10,000 for an average-priced home. So it’s important to prepare for them ahead of time.
This guide explains what these costs include, where they come from, and how much you might have to pay when closing on a home in the Sunshine State.
Here are the four big takeaways from this guide:
- Closing costs in Florida usually range from 2% to 5% of the purchase price. For a median-priced home ($378,000), that’s about $7,500 to $19,000.
- These costs are paid at closing by cashier’s check or wire transfer. Other costs, like the appraisal and inspection, are separate and usually paid earlier.
- Buyers typically pay for the mortgage documentary stamp tax, intangible tax, lender’s title insurance, escrow deposits, and prepaid interest/insurance.
- Sellers often cover the owner’s title policy and deed transfer tax. But these customs vary by county and can be negotiated during the offer stage.
Closing Costs Explained
Closing costs are the combined fees and charges you pay on the day you finalize your home purchase. They cover things like state and county taxes, title insurance, lender fees, and prepaid expenses such as property taxes and homeowners insurance.
In Florida, these costs are usually paid with a cashier’s check or wire transfer at closing, along with your down payment. They add up to about 2% – 5% of the purchase price, on average.
What’s not included: Some common expenses like the appraisal, home inspection, or pest inspection, are often referred to as “closing costs.” But in reality, they’re usually paid separately at the time of service and are therefore not included in the closing day payment.
Average Costs in Florida, as of Fall 2025
As mentioned above, the average closing cost range for Florida home buyers is 2% to 5% of the purchase price.
These costs can vary. Variables include the type of mortgage loan, lender fees, mortgage taxes, title insurance customs, prepaid taxes and insurance, and negotiated seller contributions.
The current median home price in Florida is $378,000. This means the 2% to 5% range for buyer closing costs would fall between $7,560 and $18,900.
Generally speaking, a higher home price will result in higher closing costs. That’s because some of these individual fees and charges scale in relation to the home price.
There are some fixed fees (like a recording fee or settlement fee) that don’t change much, but the main drivers of closing costs are tied directly to the purchase price and loan amount.
When they’re due: These costs are paid at closing, along with the down payment. Buyers usually bring one check with a lump sum that covers both the down payment and closing costs.
What the Buyer Pays For
In Florida, both home buyers and sellers usually have to pay closing costs. But the buyer pays for most of them, especially when they’re using a mortgage loan to finance the purchase.
Here are some of the specific costs buyers pay at the closing table (those that are included in the final cashier’s check or wire transfer).
A. Lender & Loan-Related Fees
- Origination Fee: This is what the lender charges for creating and processing your loan. (Average: 0.5% – 1% of the loan amount).
- Discount Points: This is an optional fee. You can choose to pay “points” upfront to lower your mortgage interest rate, which reduces your monthly payment for the life of the loan.
- Underwriting/Processing Fees: These fees cover the cost for the lender’s team to research your financial history, verify your information, and approve your loan. (Average: $700 – $1,200 combined).
- Flood Certification Fee: A small fee to a third party to determine if the property is located in a designated flood zone, which dictates insurance requirements. (Average: $20 – $30).
B. Title & Settlement Fees
- Settlement Fee (or Closing Fee): This is paid to the title company or closing attorney for conducting the closing, preparing documents, and disbursing funds. (Average: $400 – $800).
- Lender’s Title Insurance: This insurance policy is mandatory and protects your lender against any future claims or disputes regarding the property’s title. The cost is based on a state-regulated formula tied to the loan amount.
- Title Search Fee: This fee covers the cost for the title company to examine public records to ensure there are no ownership disputes, liens, or other defects on the property’s title. (Average: $200 – $400).
C. Florida-Specific Government Taxes & Fees
- Documentary Stamp Tax on the Mortgage (“Doc Stamps”): Florida charges a tax on mortgage documents. The rate is $0.35 per $100 (or portion thereof) of the mortgage amount.
- Intangible Tax on the Mortgage: This is another state tax, calculated as 0.2% of the total mortgage loan amount.
- Recording Fees: The county clerk’s office charges a fee to officially record the new deed and mortgage in the public record, solidifying your ownership. (Average: $10 – $20 per document).
D. Prepaid & Escrow Items
- Homeowner’s Insurance: You will be required to pay for your first full year’s homeowner’s insurance premium at or before closing.
- Property Tax Escrows: The lender will collect a portion of your property taxes to establish an escrow account. This typically includes taxes due from the day you close until the end of the current tax period, plus an additional cushion of 2-3 months.
- Prepaid Daily Interest: This covers the interest on your loan from the date you close through the end of that month. Your first official mortgage payment won’t be due until the first day of the following month.
What the Seller Pays For
The good news is that buyers don’t pay for everything. In a typical Florida transaction, the seller is responsible for several significant costs.
- Documentary Stamp Tax on the Deed: While the buyer pays doc stamps on the mortgage, the seller pays doc stamps on the deed. This state tax is calculated at a rate of $0.70 per $100 of the sale price (in all counties except Miami-Dade, where it is $0.60).
- Owner’s Title Insurance Policy: This policy protects you, the buyer, from title issues. In most Florida counties, particularly in Central and North Florida, it is customary for the seller to pay for this policy. While negotiable, this is a strong local tradition.
- Real Estate Commissions: The seller is typically responsible for paying the commissions for both their own agent and the buyer’s agent.
- Prorated Taxes & HOA Dues: The seller will pay their share of property taxes and any Homeowner’s Association (HOA) dues for the time they owned the property during the year, calculated up to the day of closing.
- HOA Estoppel Letter: If the home is in an HOA, the seller must pay for an estoppel letter. This is a legally binding document from the HOA that confirms the seller’s dues are paid up to date. (Average: $250 – $500).
How the Payment Process Works in Florida
In Florida, these funds are usually delivered directly to the title company or closing attorney, who holds the money in an escrow account. This allows the closing agent to disburse the funds to all parties involved in the transaction, without unwanted delays.
But in reality, this process starts earlier, when the home buyer first applies for a loan.
Here’s how the closing cost payment process usually works in Florida:
- Loan Estimate (LE) is received: You get the initial estimate of your closing costs within three business days of submitting a loan application.
- Saving sufficient funds: You save money to cover the estimated closing costs, along with the down payment and any reserves your lender might require.
- Negotiating seller contribution: You can negotiate with the home seller to cover some of your closing costs during the home purchase negotiation.
- Closing Disclosure (CD) is received: You’ll receive a final breakdown of all closing costs at least three business days before closing.
- Reviewing the Closing Disclosure: You review the CD to compare the final costs against the initial Loan Estimate (step 1) to check for discrepancies.
- Arranging funds: You begin the process of gathering the exact amount needed for closing, confirmed by the CD. Gift funds can be used.
- Finalizing with the escrow/title company: You coordinate with the escrow or title company to confirm the final amount and arrange for payment.
- Paying the funds: You pay the total amount due, typically via a cashier’s check or wire transfer, on the day of your closing.
- Receipt of funds: The escrow or title company receives and distributes the funds to the appropriate parties (seller, lender, etc.).
- Follow-up: You receive final closing documents and a settlement statement confirming all payments have been made.
Caution: To prevent fraud, Florida home buyers should always verify wiring instructions directly with their closing agent over a trusted phone number.
Disclaimer: All costs and averages mentioned in this guide are estimates and can vary based on the borrower’s location, lender, and transaction details. Always rely on your official Loan Estimate and Closing Disclosure for estimated and exact figures.