Real Estate Closing Costs in Key West.

Along with the down payment, you will need between four and six percent of your real estate loan amount to pay for closing costs, unless you are obtaining an FHA or VA loan. These costs include fees for your attorney, the lender's appraisal, lender's title insurance, title search, escrow deposits for property taxes and/or homeowner's insurance, as well as other expenses such as recording fees. If you are obtaining a loan, the law requires the lender to provide an estimate of these costs at the time you apply.

Seller's costs

The seller is responsible for paying the local Key West real estate agents commission on the sale and must pay any taxes owed on the property, any money due his or her lender, and any liens that may be outstanding on the property. Usually, the seller is required to pay the cost of a title insurance policy for the buyer that insures the buyer against any defects in the title to the property.

The seller is sometimes required to pay "points." Points are the difference between prevailing interest rates and the rate the buyer is actually paying for his or her loan. For example, if the prevailing rate is eight percent and the actual rate being paid by the buyer is seven percent, the seller would pay one point, or one percent, of the amount of the buyer's loan.