Are you budgeting for a home in Lutz or North Tampa and wondering what closing costs really include? You are not alone. Buyers and sellers often focus on price and forget the stack of one-time fees, taxes, and prepaids that appear at the finish line. In this guide, you will learn what shows up on a Hillsborough County closing, who typically pays each item, and ballpark numbers so you can plan with confidence. Let’s dive in.
Updated: November 2025. Rates and practices can change. Always request written estimates from your lender and title company.
What closing costs include
Closing costs are all charges due at or before closing that are not your down payment. In Hillsborough County, that usually covers:
- State taxes on deeds and mortgages, plus county recording fees.
- Title insurance and settlement services.
- Lender charges, appraisal, and third-party verifications.
- Prepaid items and escrow reserves for taxes and insurance.
- Inspections and any HOA or condo fees.
- For sellers, real estate commission and mortgage payoffs.
Many items are set by Florida statute or regulated rate schedules, while who pays is often a local custom that can be negotiated in your contract.
Who pays what in Hillsborough
Typical buyer-paid items
- Documentary stamp tax on the promissory note and the intangible tax on a new mortgage when financing.
- Lender fees: origination, underwriting, appraisal, and credit report.
- Lender’s title policy and buyer-side recording fees.
- Prepaids and escrow deposits for insurance and property taxes.
Typical seller-paid items
- Documentary stamp tax on the deed and the owner’s title insurance policy in many Hillsborough deals.
- Real estate commission agreed in the listing agreement.
- Title-related seller fees, lien or mortgage payoffs, and prorated taxes and HOA dues.
Customs can vary by neighborhood and the market cycle. The purchase contract sets who pays each line.
Buyer costs: what to expect
Most buyers in Hillsborough County budget about 2 percent to 5 percent of the purchase price for closing costs, not including the down payment. Your total depends on your loan type, escrow setup, and negotiations.
Taxes and recording
- Documentary stamp tax on the mortgage and the intangible tax on the mortgage principal when you finance.
- County recording for the deed and mortgage.
- Rates are set by Florida law and county schedules. Verify current figures with the Florida Department of Revenue and the Hillsborough County Clerk.
Title and settlement
- Lender’s title insurance policy, required by most lenders.
- Settlement or closing fee to the title company. Often split or negotiated.
- Owner’s title policy is commonly a seller expense in our area, but confirm in your contract.
Lender and third-party fees
- Origination, underwriting, or discount points if you choose to buy down your rate.
- Appraisal: typically 450 to 700 dollars.
- Credit report, flood certification, and verification services.
Prepaids and escrow deposits
- First-year homeowner’s insurance premium, paid at closing in many cases.
- Initial escrow reserves, often 2 to 6 months of taxes and insurance.
- Property tax prorations. Florida taxes are paid in arrears, so you and the seller settle up through the closing date.
Inspections and extras
- General home inspection, plus termite, roof, septic, well, or pool checks if applicable.
- HOA or condo application fees and document fees if the property is in an association.
Seller costs: what to expect
Total seller costs in Hillsborough County often fall between 5 percent and 8 percent of the sale price. Commission is usually the largest line item.
Common seller line items
- Real estate commission that covers both the listing and buyer’s agents as agreed in your listing agreement.
- Documentary stamp tax on the deed, commonly a seller expense in Florida.
- Owner’s title insurance policy premium in many local transactions.
- Mortgage payoff and any lien releases, plus related recording or processing fees.
- Prorated property taxes and HOA dues through the closing date.
- Potential credits to the buyer if negotiated for repairs or buyer closing costs.
Negotiation notes
- Who pays the owner’s title policy and certain taxes can shift with market conditions and contract terms.
- Adjusting commission or offering buyer credits affects your net proceeds and your property’s marketability.
Quick estimate examples
Numbers below are estimates to help you budget. Always request a formal Loan Estimate from your lender and a settlement quote from your title company.
Example A: Buyer in Lutz
- Purchase price: 350,000 dollars. Loan: 80 percent.
- Estimated buyer closing costs: about 7,000 to 12,000 dollars, which is roughly 2 percent to 3.5 percent of the price, plus your down payment.
- What that covers: lender fees, appraisal, lender’s title policy, documentary stamp and intangible taxes on the mortgage, initial escrow deposits, and inspections.
Example B: Seller in North Tampa
- Sale price: 350,000 dollars.
- Estimated seller closing costs: about 24,000 to 29,000 dollars, which is roughly 7 percent to 8 percent if paying a 6 percent commission plus customary deed tax and owner’s title policy. Your mortgage payoff and prorations will adjust the final net.
Property taxes and prorations
- Florida property taxes are paid in arrears and are prorated at closing between buyer and seller.
- Homestead exemption can reduce the annual tax bill for eligible primary residences. New owners must apply, since exemptions do not transfer automatically.
- For current millage rates, tax calendars, and homestead details, contact the Hillsborough County Property Appraiser and Tax Collector.
HOAs and condos
Many associations charge estoppel and transfer fees. The contract will specify who pays each fee.
Sellers should provide required disclosures and association documents on time. Delays can affect closing timing and costs.
How to get exact numbers
- Ask your lender for a Loan Estimate within three business days of application. This outlines your rate, payments, and expected closing costs.
- Request a preliminary Closing Disclosure or itemized settlement estimate from a local title company.
- Confirm deed and mortgage recording fees with the Hillsborough County Clerk of the Circuit Court and Comptroller.
- Review current property tax numbers and any exemptions with the Hillsborough County Property Appraiser.
- Verify wiring instructions by phone with your title company to avoid wire fraud.
Timing and funds to close
- Your lender will send a Closing Disclosure at least three business days before closing. Review it line by line and ask questions early.
- Bring a cashier’s check or arrange a verified wire for funds to close. Confirm the exact amount with the title company.
Work with a local guide
If you want a clear estimate for your specific address and contract terms, a local team can coordinate your lender and title partners and deliver a simple, side by side breakdown. For a personalized closing-cost review or a net sheet before you list, connect with The REvest Group. Our team serves Lutz, North Tampa, and all of Hillsborough County.
FAQs
Who pays for owner’s title insurance in Hillsborough County?
- Customarily the seller pays for the owner’s title policy in many Hillsborough transactions, but it is negotiable and set by the purchase contract.
What are documentary stamp taxes in Florida?
- These are state taxes on deeds and promissory notes; sellers often pay the deed tax while buyers who finance pay the promissory note tax, subject to contract terms.
What is the Florida intangible tax on mortgages?
- It is a state tax on the principal amount of a new mortgage, typically paid by the buyer when obtaining a loan.
How much should a Hillsborough buyer budget beyond the down payment?
- Plan for about 2 percent to 5 percent of the purchase price for closing costs, depending on loan type, lender fees, and escrow requirements.
What can reduce a seller’s closing costs?
- Negotiating commission, limiting buyer concessions, and contract terms on who pays title and certain taxes can lower total costs, though market conditions will guide strategy.
