Closing Costs for Buying a Home in Jacksonville

A Buyer’s Guide to Understanding Closing Costs

consult your real estate agent and lender for an estimate of closing costs and net profit

Lender-Related Costs

These include processing the mortgage, the appraisal fee, credit report fee, etc.

Prepaids and Interest

These include property taxes, home insurance and mortgage interest the lender charges upfront

Home Inspection Fees

Do your due diligence and hire a professional for a general home inspection, plus any additional specialty inspections such as a WDO Report

Here’s a list of costs normally paid for by the buyer in a real estate transaction in Northeast Florida:

Home Inspection ($175 – $750)

The cost for the home inspection varies depending on the size and type of home, as well as the inspection company itself. Some inspectors offer more thorough reports, complete with extras like infrared imaging, while others stick to the basics. Just make sure the inspector you choose is fully accredited, licensed and comes with good reviews.

Wood Destroying Organism (WDO) Inspection ($75 – $150)

Some lenders will require this inspection to find any wood rot or damage, but I would recommend getting the home inspected for WDO whether it’s required or not – can’t hurt to be thorough when it comes to such a large purchase. The inspector will look for any rot or damage caused by water intrusion or insects (i.e. termites, powder post beetles). If you are financing with a VA loan, the seller must pay this fee.

Appraisal Fee ($300 – $650)

This cost can vary based on the type of loan and the type of property. The appraisal is required by the lender as an assessment of the home’s value, and is not an “inspection” of the property even though repair requests can show up in the report.

Credit Report Fee ($25 – $50)

Cost from your lender to check your credit. You can also do this for free once a year at

Mortgage Origination Cost (Processing or Underwriting Fees)

The cost to originate, process, underwrite and close the loan. This price can vary depending on the lender, and it is the only cost that can be controlled by the lender. When comparing lenders to use at the start of your home search, this is the cost that you’ll want to compare them by (as well as the interest rate they can offer you).

Pre-Paid Items (include property taxes, home insurance and interest)

Your lender may require you to set aside money for your taxes and insurance in an escrow account that will be established the day of closing. Typically the lender will want to see between 6 and 12 months worth of tax payments and 3 to 6 months of home insurance. Depending on the time of the month that closing takes place, you will also have to pay a certain amount of interest for the mortgage payment.

Recording Fees ($10 for first page, $8.50 per each page after in Duval County)

Cost charged by the county to record the documents.

Tax Service Fee ($75 to $125)

Lender charge that go to tax service agency that keeps track of property tax payments and alerts the bank if you become delinquent on payments in order to avoid property liens.

Flood Certification Fee ($25 – $75)

A charge from the lender to verify what flood zone the property is in and if it requires flood insurance.

Intangible Tax (.002 x Loan Amount)

State tax on a note, bond or other obligation for payment of money that is secured through a mortgage deed or other lien on real property.

Note Stamps (.0035 x Loan Amount)

State tax charged on mortgage note.

Simultaneous Mortgagee Title Insurance Policy (varies)

This cost varies depending on the insured amount of the loan. The cost is $5.75 per $1000 up to $100,000, then an additional $5 per $1000 from $100,000 to $1 million.

Title Insurance Endorsements

Vary depending on the type of property. Part of the title insurance policy, endorsements are added to provide coverage for conditions on the title that can affect future marketability of title that are not covered in a standard title policy.

Mortgage Insurance Premium (varies depending on loan amount)

If you’re planning on putting down less than 20% as the initial down payment, the lender will charge a mortgage insurance premium (MIP) to help balance the risk of your low equity in the home in case you default. If you are financing through an FHA loan, the MIP lasts throughout the life of the loan (not just until you get to 20% equity like other loans) you’ll also have to pay an upfront mortgage insurance premium (UFMIP) that will be 1.75% x the loan amount.


Optional Costs for Buyers

Discount Points (1 point = 1% of loan amount)

If you want to lower your interest rate, you can pay the lender upfront in exchange for the lower rate. The opposite can be done as well; the lender will give you money upfront in exchange for a higher interest rate.

Home Warranty

The cost varies depending on the level of coverage, this cost will offer limited coverage on things like appliances, mechanical systems and the roof.

Looking for more resources for buying a home?

Browse through our buyer tools and resources, or send over a question using the contact form below.

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