Closing Costs In Melbourne: What Buyers Actually Pay

Buying in Melbourne and not sure how much cash you’ll actually need at closing? You’re not alone. First-time and out-of-state buyers often underestimate the mix of fees, taxes, and prepaids that show up on the final statement. This guide explains what closing costs include in Brevard County, typical ranges, real examples, and how to estimate your cash to close with confidence. Let’s dive in.

What closing costs include in Melbourne

Closing costs are the one-time charges and required prepayments you make to finalize your purchase. In Melbourne, these typically include:

Lender fees and appraisal
Title services and title insurance
Government recording fees and state documentary taxes
Prepaid items like interest, insurance, and escrow deposits
Inspections, surveys, and possible HOA or condo transfer fees

Customs on who pays certain items can vary in Florida. Some costs are negotiable in your contract. Always confirm your specific breakdown with your lender and closing agent.

What buyers actually pay: line by line

Lender fees and appraisal

Origination, processing, underwriting: About 0.25% to 1.5% of the loan amount or a flat fee, often $500 to $3,000 or more depending on lender and loan program.
Discount points (optional): Paid to lower your interest rate. One point equals 1% of the loan amount.
Appraisal: Commonly $450 to $800 in Brevard County, higher for complex properties.
Credit report: Usually $25 to $60.

Title services and title insurance

Title search, exam, and closing/settlement fee: Often $300 to $1,200 depending on the title company and services.
Title insurance: Lender’s policy is required when you finance. An owner’s policy is optional but protects your ownership. In many Florida markets, sellers often pay for the owner’s policy, but this is negotiable in your contract.
Recording and clerk fees: County fees to record the deed and mortgage. Expect totals in the low hundreds. Your title company will quote Brevard-specific amounts.

Government transfer taxes and intangible tax

Florida assesses documentary stamp taxes on deeds and on mortgage notes, and an intangible tax can apply to the mortgage. These state taxes are collected at closing. Who pays often follows local custom or your contract terms. Confirm current rates and payer responsibilities with your title company.

Prepaids, escrow deposits, and prorations

Prepaid interest: Interest from your funding date to the first payment. It depends on your closing date.
Homeowners insurance: Many lenders require the first year’s premium at closing. Coastal Florida premiums can be higher, so get quotes early.
Initial escrow deposit: Lenders often collect 1 to 3 months of taxes and insurance to start your escrow account, with a small cushion allowed by federal rules.
Property tax prorations: Taxes are settled between you and the seller based on your closing date.

Inspections and reports

General home inspection: About $300 to $700 depending on size and complexity.
Specialized inspections: Pest or WDO $50 to $200. Wind mitigation or four-point $75 to $200. Septic or well as applicable.
Survey: Often $300 to $1,200 if required.

HOA and condo fees

Estoppel or association transfer fees: Commonly $100 to $400, sometimes higher. Some associations also charge move-in or transfer fees.

Earnest money deposit

Not a closing cost, but it matters for cash to close. In many offers, buyers put 0.5% to 2% down as earnest money, which is credited back to you at closing.

How much cash to close: Melbourne examples

Below are illustrative ranges for buyer-paid costs, not including your down payment. Your actual numbers depend on your lender, title company, insurance quotes, and contract terms.

Example A: Purchase price $300,000

Estimated buyer closing costs: about 2.0% to 4.0% of price
Range: $6,000 to $12,000
- Lender fees and points: $1,200 to $3,000
- Appraisal: $500 to $650
- Title, closing, and recording: $600 to $1,500
- Prepaids and escrow: $2,000 to $4,500
- Inspections: $350 to $900

Example B: Purchase price $450,000

Estimated buyer closing costs: about 2.0% to 4.0%
Range: $9,000 to $18,000
- Appraisal similar to Example A; title premiums and escrow amounts increase with price and loan size.

Example C: Purchase price $650,000

Estimated buyer closing costs: about 1.8% to 4.0%
Range: $11,700 to $26,000
- Expect higher title premiums and prepaids. Loan program and down payment will influence lender fees.

Estimate your costs with Edgar’s tools

You can create a realistic cash-to-close estimate using Edgar’s mortgage and closing cost calculators. Be ready with the inputs below, then review the line items the tool generates.

What to have ready

Purchase price and down payment or loan program
Loan type and term
Estimated interest rate
County or zip code set to Brevard County or Melbourne
Any seller-paid closing costs you negotiated
Estimated annual taxes and homeowners insurance
HOA or condo details if applicable
Any buyer credits or assistance amounts

What the calculator shows

Lender charges like origination, appraisal, and credit report
Title and settlement charges, including lender and owner’s title policies
Government recording and state taxes flagged as Florida-specific
Prepaid interest, insurance binder, and initial escrow deposit with month counts
Estimated cash to close and your monthly payment with escrow

How to validate your estimate

Ask your title company for exact title premiums and recording fees.
Confirm lender fees, rate lock details, and required escrow with your lender.
Get homeowners insurance quotes and clarify any wind mitigation or four-point needs.
If needed, verify recording fee schedules with the Brevard County Clerk.

Ways to reduce what you pay at closing

Negotiate seller concessions. Ask for a credit toward closing costs in your offer when market conditions allow.
Use lender credits. Some lenders let you accept a slightly higher rate in exchange for credits that offset fees.
Shop lenders. Compare Loan Estimates from at least two or three lenders to reduce origination and points.
Request seller-paid owner’s title. In many Florida deals, sellers cover the owner’s policy. Make it clear in your contract.
Time your closing date. Closing later in the month can reduce prepaid interest.
Seek assistance programs. Ask about Florida or Brevard County down payment and closing cost assistance for first-time buyers.

Insurance and escrow in coastal Florida

Insurance can be a bigger part of prepaids near the coast. Homeowners insurance is often required to be paid for the first year at closing, and your lender may collect 1 to 3 months of insurance and taxes to start your escrow. Wind mitigation and four-point inspections can help insurers evaluate risk. If a flood policy is required by your lender, factor that premium into both prepaids and your monthly escrow.

Closing day checklist

Bring this simple checklist to keep closing smooth and stress-free:

Government-issued ID for all buyers on title
Certified funds or wire confirmation for cash to close
Final insurance binder and any required inspections or reports
A copy of your latest Loan Estimate or closing figures for reference
Contact info for your lender and title agent in case questions come up

Buyer vs. seller customs to know

Customs vary across Florida and even within Brevard County. In many transactions the seller pays the owner’s title policy, but this is negotiable and must be stated in your contract. Florida collects documentary stamp taxes and, in some cases, intangible tax on the mortgage. Who pays each item depends on local practice and your agreement. Your title company will outline the exact payer and amount on your closing disclosure.

Ready to get a personalized, line-by-line estimate and a smart plan to reduce your out-of-pocket costs? Reach out to Edgar’s team for local guidance and a custom estimate. Contact Edgar Rodriguez to get started today. Encuentra tu hogar — Contáctame.

FAQs

How much cash do buyers in Melbourne need at closing?

A common range is 2% to 4% of the purchase price for closing costs, plus your down payment. Your exact total depends on your loan, insurance, escrow deposits, and any seller credits.

Who usually pays the owner’s title policy in Brevard County?

In many Florida markets the seller often pays for the owner’s title policy, but it is negotiable. Your contract should state who covers it.

What Florida taxes are charged on a home purchase?

Florida assesses documentary stamp taxes on deeds and mortgage notes, and an intangible tax can apply to mortgages. Confirm current rates and who pays with your title company.

Is my earnest money deposit part of my closing costs?

Yes. Earnest money is credited to you at closing and reduces the cash you need to bring.

What is the difference between prepaids and closing costs?

Prepaids are advance payments like insurance, prepaid interest, and initial escrow deposits. Closing costs are service fees like lender charges, appraisal, title, and recording.