By Jessica Schwartz, REALTOR® & Loan Originator · October 21, 2026
Most buyers plan carefully for the down payment, then get surprised by the second number: closing costs. Florida has a few line items you won’t see in many other states. Here’s how to read them on your Loan Estimate, what’s set by law, and what you can actually shop or negotiate.
Start with the Loan Estimate
Once you apply for a mortgage, federal rules require the lender to send you a Loan Estimate within three business days. It’s a standard three-page form, which makes it easy to compare offers side by side. Page 2 is where closing costs live, broken into “Loan Costs” and “Other Costs.”
Near closing, you’ll get a Closing Disclosure. It must reach you at least three business days before you close. Lay it next to your Loan Estimate and compare line by line. If the loan product changes, a prepayment penalty is added, or the APR changes beyond a set tolerance, a new three-day waiting period starts.
If you haven’t applied yet, my step-by-step pre-approval guide walks through what to gather first.
Bucket 1: Lender and loan fees
These are charges for originating and processing the loan. Depending on the lender and loan type, you may see:
- Origination or underwriting fees: what the lender charges to make the loan.
- Discount points: optional. You pay more upfront in exchange for a lower rate. Whether points make sense depends on how long you expect to keep the loan.
- Credit report and flood certification: small fees, usually passed through at cost.
- Upfront mortgage insurance or funding fees: FHA loans include an upfront mortgage insurance premium, and VA loans have a funding fee unless the borrower is exempt. Both can often be financed into the loan.
These are the costs that vary most from one lender to another, so they’re where comparing Loan Estimates pays off.
Bucket 2: Third-party services
These go to the companies that verify the property and protect the transaction:
- Appraisal: required by most lenders to confirm the home’s value.
- Title search and lender’s title policy: protects the lender against title defects. Most lenders require it.
- Owner’s title policy: protects you. Who pays for it is negotiable and is written into the contract. Local custom varies by county, so ask before you write an offer.
- Settlement or closing fee: paid to the title company or attorney handling the closing.
- Survey: often required for a single-family home, less often for a condo.
One Florida-specific note: title insurance premiums are set by the state, not by each company. The premium for a given price should match from one title agent to the next. What can differ are the agent’s other fees, like settlement and search charges, and any endorsements your lender requires.
On your Loan Estimate, look for the section labeled “Services You Can Shop For.” Those are the ones you’re allowed to choose yourself.
Bucket 3: Florida taxes and recording fees
This is the part that surprises people moving from other states. When you take out a new mortgage in Florida, two state taxes apply to the loan:
| Item | State rate | Who usually pays |
|---|---|---|
| Documentary stamp tax on the note | $0.35 per $100 of the loan amount | Buyer (borrower) |
| Nonrecurring intangible tax on the mortgage | $0.20 per $100 of the loan amount (0.2%) | Buyer (borrower) |
| Documentary stamp tax on the deed | $0.70 per $100 of the sale price | Customarily the seller, but it’s set by the contract |
| Recording fees | Set by statute, charged per page by the county clerk | Usually split: buyer records the mortgage, seller handles documents that clear the title |
Here’s what that math looks like on a hypothetical $300,000 loan: about $1,050 in documentary stamps on the note and $600 in intangible tax. Those amounts don’t change based on which lender you choose. They’re set by the state, so build them into your budget from the start.
If you’re a cash buyer, the two mortgage taxes don’t apply, since there’s no loan.
Bucket 4: Prepaids and escrow deposits
These aren’t really fees. They’re your own future bills paid in advance, and they’re often the biggest swing item on a Florida closing statement:
- Homeowners insurance: most lenders want the first year paid at closing. In Florida, that premium can be significant, so get a quote early. My nine questions to ask about home insurance can help, including the 4-point and wind mitigation inspections that can affect your premium.
- Flood insurance: required by the lender if the home is in a designated special flood hazard area, and worth pricing even if it isn’t.
- Property tax escrow: Florida property taxes are paid in arrears. Tax bills go out in November, with a discount for early payment. At closing, the seller credits you for their share of the year, and your lender collects a cushion to fund your escrow account.
- Prepaid interest: interest from your closing date to the end of that month. Closing later in the month means less prepaid interest, though it doesn’t change your total cost of borrowing.
- HOA and CDD items: many communities charge a capital contribution or transfer fee to buyers, and CDD assessments show up on the property tax bill. Here’s how CDD fees work in Port St. Lucie.
Remember that your tax escrow is based on what the home will be taxed at for you, not what the seller paid. If the seller had a homestead exemption and you buy at a higher price, your bill may be higher. You can file your own exemption once you move in. See my homestead exemption guide for deadlines.
What you can shop, negotiate or ask for
- Compare Loan Estimates. Lender fees and points are where offers differ most. Compare the same loan type on the same day.
- Shop the services you’re allowed to shop. Title agents can’t compete on the state-set premium, but their other fees can differ.
- Negotiate seller concessions. A seller can agree to pay part of your closing costs. Each loan program sets its own limit on how much the seller can contribute, and the appraisal still has to support the price.
- Ask about assistance programs. Florida has state and local down payment and closing cost assistance programs for qualified buyers. Funding and eligibility rules change, so check what’s open when you’re ready.
- Mind your closing date. It changes prepaid interest and tax prorations. It doesn’t change the big picture, but it can change your cash to close.
A quick checklist before closing day
- Compare your Closing Disclosure to your Loan Estimate, line by line.
- Confirm the insurance binder, and flood policy if needed, has reached the lender and title company.
- Ask the title company for your final cash-to-close figure and verify wire instructions by phone using a number you already have. Never trust wiring instructions sent by email alone.
- Bring a government-issued photo ID to closing.
Every transaction is a little different, so treat this as general information. Confirm tax and fee amounts with your title company or closing attorney, and confirm coverage questions with your insurance agent. Have more questions? My FAQ page covers a lot of the basics, or you can start browsing homes and we’ll run real numbers on the ones you like.
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General information, not legal, tax, insurance or financial advice. Not a commitment to lend; all loans subject to credit approval and underwriting. Jessica Schwartz, REALTOR® & Broker Associate, RE/MAX Gold. Each RE/MAX office is independently owned and operated. Loan Originator NMLS #2704014, RMI Brokers, Inc. dba One Brokerage, NMLS #2142653. Equal Housing Opportunity.