5 Ways to Reduce Closing Costs in Florida

5 Ways to Reduce Closing Costs in Florida

With closing costs generally accounting for at least three percent of the mortgage loan, knowing how to reduce these costs when purchasing a home in Florida can save you a substantial amount of money, which you can then use to buy new furniture or put it towards the renovations you are thinking about.

Here are five tips for saving on closing costs in the State of Florida:

1 – Studying the Loan Estimate

In Florida, lenders must provide a loan estimate, by either delivering by hand or mailing it, no later than three business days after the receipt of a loan application. A loan application is considered “received” when the applicant provides the following information:

• Applicant’s name.
• Applicant’s income.
• Applicant’s Social Security Number to obtain a credit report
• Address of the property the applicant intends to buy.
• An estimate of the value of the property.
• The loan amount sought.

When you apply for a mortgage, the loan estimate provided by the lender gives you the opportunity to compare the closing costs between different lenders. Additionally, it makes it easy to evaluate the closing costs once you have chosen a lender. The loan estimate is a legally binding document, and you should make sure you study it carefully before choosing a lender for your new real estate purchase.

2 – Negotiating Lender Fees

When you apply for a mortgage, your lender may charge you a single fee that includes various services. Other lenders, however, may charge a separate fee for each service they provide. Whenever you see more than three lines of items listed as charges, you must be cautious and ask as many questions as necessary.

It is perfectly normal to see fees like “originating” or “underwriting.” However, charges such as “funding fee” or “delivery fee” are arbitrary and you must request an explanation. Whenever you see these ambiguous names you do not understand, ask your lender as many questions as you need until you are sure you understand what you are actually paying for. If you see an opportunity to negotiate these fees, take it. If, however, a lender refuses to answer your questions properly or negotiate these ambiguous fees, it is best to look for a different lender.

3 – The “No Closing Costs” Mortgage

This is an effective way to avoid paying closing costs when you have “run out of money.” This does not mean you will not pay any closing fees; it means your lender will include the closing costs in your loan. At closing, your lender will take care of the cash payments to fulfill the closing costs; however, you will need to pay more money each month for your mortgage.

4 – Choosing the Right Title Company

Your title company will conduct a thorough examination of the historical records of the property you intend to buy and prepare all the documents necessary to complete the real estate transaction. When it comes to buying a home in Florida, choosing the right title company is a critical step in the process. Choosing the wrong title company can be a costly mistake – you must do your research.

When researching title companies and comparing prices online, you should not focus exclusively on the total costs of a title company’s services, you should also consider the quality of those services. Before choosing a title company, you should first search for online reviews of the company on trustworthy, independent websites to make sure the company you are considering is reliable, experienced, and right for your needs and goals.

5 – Choosing Marina

When you choose Marina Title to handle your closing, you will not only have a title professional by your side who will work hard to ensure you save as much money as possible, you will also enjoy the best closing services in the State of Florida.

Give us a call at (305) 901-5628 or send us an email to [email protected] to get started on the process of buying the house of your dreams.