HOMM Real Estate Services Blog

Did You Remember to Budget for Closing Costs?

Buying a home is one of the largest financial transactions most people make in a lifetime. If it’s your first time buying a home, you might not realize that homeowners have to pay for more than just the price tag on the house. In addition to saving for the down payment, there are many other costs associated with buying a home; home inspections, appraisals and escrow fees are considered closing costs and are out of pocket costs to both buyer and seller. When financing the home, there are additional lender fees as well.  Planning for these fees is paramount in buying a home. You don’t want to find your dream home and realize you’re out of budget, solely because of closing costs. We suggest you work with a knowledgeable real estate professional. Especially if you are looking to buy a home in the Brandon or Tampa area; the experts at HOMM Real Estate Services can help you navigate through your financing, expenses and closing costs.

What are Closing Costs?

Closing costs are typically out of pocket costs associated with buying or selling, a home. There are application fees, escrow fees, inspection fees and those are just the first few. Zillow has a comprehensive list of most of the fees you can expect, along with explanations. Not every home purchase necessitates every fee, but you want to be aware of what you’re walking into.  

How should I pay for Closing Costs? 

The Nerd Wallet suggests that the best way to pay for closing costs is out of pocket, instead of folding it into your loan. Some loan programs will allow you to “finance” most of these costs by adding the cost to the loan balance. It’s important to remember that the home must still appraise for the additional value and not all programs allow you to do this, plus you’ll be paying interest on closing costs for the duration of your loan. Your best bet is to save for your down payment and closing costs before you start home shopping. Planning for the extra costs will save you hassle and stress, especially since there will be no surprises.

How much should I plan for?

Nationally, closing costs range between 3-7% of a home’s purchase price. In Florida, the market is a little different. Currently (Feb 2020), the closing costs you can expect are roughly 1.89%-2.76% before taxes. Florida, like any state, has its own set of unique fees and taxes. Make sure to plan for the higher end, especially since the housing market tends to fluctuate.   

How will I know the exact closing costs? 

The full list of closing costs involved in your specific property sale will be outlined on a form called the Good Faith Estimate (GFE). This will be provided only once you have entered the settlement/escrow period. It will disclose costs associated with concluding the transaction. You can expect to see items related to loan fees and costs, appraisal, title insurance, transfer fees, processing and recording fees, hazard insurance and property tax costs among many others.

If you are considering a home purchase, it’s time to speak with a local expert to get a full understanding of the costs associated with buying a home. HOMM Real Estate Services uses their expertise in the Tampa, Florida market to help you plan for closing costs. They can also connect you with lenders that will properly outline your options. In this way, you can ensure you have saved what you need so you’re one step closer to closing on your dream home.


HOMM Real Estate Services, located in the Brandon, Florida area of Tampa-Bay focused to Hillsborough, Pasco and Polk Counties. As a full-service general real estate company, we specialize in general real estate, home buyers, home sellers, new home construction, rentals, tenants and landlords and property management. Learn more about Marie Negron, her team and HOMM Real Estate Services. Call 813-684-5954 or email info.hommsales@gmail.com to get started.

Posted by Marie Negron, Owner on March 5th, 2020 11:41 PM

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