How to Budget for Closing Costs When You Buy in Naples

The down payment is only one number on the way to the closing table. Naples buyers should also budget for title costs, Florida taxes on the mortgage if they are financing, lender fees, prepaid taxes and insurance, and any HOA or condo charges due at closing. In Collier County, including Naples and Marco Island, the buyer customarily pays the owner’s title insurance policy and the title fees. In Lee County, and in many other Florida counties, the seller customarily pays those title items. I will not invent a total or a percentage of the price. Your lender and title company will give you the official worksheet for your contract.

Title works differently in Collier County

This is the line that surprises people who have bought in Fort Myers or another Florida market and then buy in Naples. Here, the buyer typically pays the owner’s title policy and the title fees. The documentary stamp tax on the deed is typically a seller cost in Collier County, so it should not be counted again on the buyer’s side. If you are also looking in Lee County, ask your closer which custom applies to that contract, because it is not the same.

Florida taxes the mortgage, not just the deed

On a financed purchase, Florida charges a documentary stamp tax on the promissory note at 35 cents for each $100, or any portion of $100, under Florida law. There is also a nonrecurring intangible tax of 2 mills, which is $2 per $1,000 of the principal, on the just value of the obligation. The lender is the taxpayer on that intangible tax, but the cost is often passed through to the borrower, as the Florida Department of Revenue explains. Cash buyers do not have those two mortgage taxes.

Lender fees and prepaids

Your Loan Estimate will list lender charges such as origination, appraisal and underwriting. You will also prepay items the servicer needs in escrow, including homeowners insurance and a share of property taxes. Florida property taxes are paid in arrears, so that prepaid tax line is easy to underestimate if you have not bought here before. If the home needs a flood policy, that premium belongs on the same worksheet. I will not guess those amounts for you.

HOA and condo charges at closing

If the property has an association, ask early what is due at closing. That can include a transfer or application fee, an estoppel letter, and sometimes a capital contribution. The exact charges come from the association and the title company, not from a rule of thumb.

I also wrote a longer walkthrough of the hidden costs of buying in Naples. For the broader process, start with my guide to buying a home in Naples, or send me a message and I will help you map the categories on a property you are considering.

Featured home: 3059 Horizon Ln #1602

My listing at 3059 Horizon Ln #1602 in Turtle Bay at Bridgewater Bay is a second-floor end unit where title costs, prepaids and association charges at closing should be on your worksheet before you write an offer. Offered at $459,900:

• 3 bedrooms, 2 full baths and a half bath, with 1,849 square feet of living space
• A second-floor end unit with a screened lanai and a lake view
• Turtle Bay at Bridgewater Bay, in North Naples, built in 2002
• An association community, so ask early what is due at closing

See the photos and details on the 3059 Horizon Ln #1602 listing page, or call me for a private showing. I will help you list the cost categories. I will not invent a total.

How I help

When I work with a buyer, we put closing-cost categories on the worksheet early, including the Collier County title custom, the Florida mortgage taxes if you are financing, lender fees, prepaids and any association charges. I will point you to your lender and title company for the official figures, and I will not invent a percentage of the price. In English and Spanish, since 2013.

What closing costs should Naples buyers budget for?
Plan for title costs, Florida taxes on the mortgage if you finance, lender fees, prepaid taxes and insurance, and any HOA or condo charges due at closing. In Collier County the buyer customarily pays the owner’s title policy and title fees. Your lender and title company will give you the official total.

Do Naples buyers pay for the owner’s title insurance policy?
Yes, by local custom in Collier County, including Naples and Marco Island. The buyer typically pays the owner’s title policy and the title fees. In Lee County, and in many other Florida counties, the seller customarily pays those items.

What Florida taxes apply to a mortgage when I buy in Naples?
Florida charges documentary stamp tax on the promissory note at 35 cents per $100, or any portion of $100, plus a nonrecurring intangible tax of 2 mills on the just value of the obligation. The lender is the taxpayer on the intangible tax, but that cost is often passed through to the borrower. Cash buyers do not pay those two taxes.

Can you give me a typical closing-cost total for a Naples purchase?
No. I will not invent a total or a percentage of the price. Ask your lender for a Loan Estimate and your title company for a worksheet on the specific contract, including any association charges.

Shopping for a home? Read the Naples buyer guide, send me a message, or call or text me at (239) 289-0749. Se habla español.