
	Set-Up Charges

	CLOSING AND RENTAL SETTING-UP CHARGES Many are concerned about hidden extras and have heard stories about buyers being saddled with unexpected charges for closing costs long after it has become too late to withdraw from the purchase. Closing costs comprise of several elements, many of which are stamp duties payable on various documents but the biggest expense is usually applicable to the mortgage. This alone can amount to 6-7% of the loan amount, and will be clarified further once the most appropriate source of finance has been determined. The vast majority of builders in Kissimmee make a substantial contribution to such costs. When a US mortgage is not required, then many builders will offer a cash discount, typically 2%. Since the buyer will have to make some contribution to the closing costs; around $1,500 will normally cover these along with charges such as a credit check fee, appraisal charge, etc. Sometimes it is necessary to pre-pay 1-month's mortgage repayment, insurance and property tax which on a $110,000 purchase and 75% mortgage might require a further $1,200 approximately along with utility deposit of around $375. Finally, if the property is being managed and rented out, apart from the $1,000 escrow sum (or float) required, lodging license, fire extinguisher and security bolts, etc., will be necessary at an additional $250 approximately. Inter-linked smoke detectors and battery operated emergency lights are also now required and if not installed by the builder will cost around $475. In total, therefore, a prudent buyer should have cash available over and above the deposit and furniture monies of around $4,500.