Are you budgeting for a home in Panama City and wondering how much you’ll really need at the closing table? You are not alone. Closing costs can be confusing, especially if you are buying in Florida for the first time or relocating from out of state. In this guide, you will learn what closing costs include, who typically pays what in Florida, how your loan and property type change the numbers, and how to plan with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaids you pay to finalize a real estate purchase. They fall into a few categories that appear on your Loan Estimate and final Closing Disclosure if you are financing.
- Lender charges
- Third-party services (title, appraisal, survey, inspections)
- Government fees and state taxes
- Prepaid items and escrow setup
- Seller charges credited or prorated to you at closing
Always rely on your Loan Estimate and final Closing Disclosure for exact figures.
Typical buyer costs in Panama City
Costs vary by loan, price point, and property type, but most financed buyers in Florida can expect the following line items.
Lender fees and appraisal
- Application, underwriting, and origination fees paid to your lender. Discount points are optional and negotiable.
- Appraisal fee for the valuation report. Lenders usually collect this up front.
- Credit report fee.
Title and title insurance
- Title search and exam performed by the closing agent or title company.
- Lender’s title insurance policy is typically paid by the buyer in Florida.
- Owner’s title policy protects your ownership. Florida custom often has the seller pay for this, but it is negotiable.
Government recording and state loan taxes
- Recording fees to file the deed and your mortgage with the county clerk.
- Documentary stamp tax and intangible tax on the mortgage are typically paid by the borrower. Florida custom has the seller pay the documentary stamp tax on the deed, but parties may negotiate.
Prepaids and escrow
- First year of homeowners insurance, collected at or before closing.
- Initial escrow deposits for taxes and insurance if your lender requires an escrow account.
- Property tax prorations based on Bay County’s tax calendar. You will reimburse the seller for any period they prepaid and you will benefit from any credit if taxes are unpaid.
Inspections and survey
- General home inspection, pest/termite inspection, and any insurance-related inspections such as wind mitigation or four-point.
- Boundary survey if required by your lender or title company.
HOA and condo items
- HOA dues that may be collected in advance.
- Estoppel and transfer fees for condos or planned communities. In many Florida transactions, sellers pay estoppel fees, but this is set by the HOA and negotiated in the contract.
Cash buyers
Cash buyers avoid lender fees, loan-related state taxes, and often the appraisal. You will still see title, recording, survey, and inspection costs.
Who usually pays what in Florida
Customs can vary by county and are negotiable. In many Florida transactions:
- Buyer usually pays: lender fees, appraisal, credit report, lender’s title policy, recording fees for the mortgage and deed, state documentary and intangible tax on the mortgage, inspections, survey, homeowner’s insurance, and escrow setup.
- Seller usually pays: real estate commission, documentary stamp tax on the deed, owner’s title policy, prorated taxes and HOA dues, and any agreed repairs or concessions.
Confirm your specific allocations in the purchase contract.
How loan type changes your costs
Your loan program can raise or lower upfront costs.
Conventional loans
You will pay standard lender fees, appraisal, and possibly discount points if you buy down your rate. If you put less than 20 percent down, private mortgage insurance is an ongoing monthly cost, not a closing cost.
FHA loans
Expect standard lender fees and appraisal, plus FHA mortgage insurance. FHA includes an upfront mortgage insurance premium that has historically been 1.75 percent of the loan amount. This upfront premium is often financed into the loan. Monthly MIP applies.
VA loans
VA loans do not have monthly mortgage insurance. They include a VA funding fee that varies by service history, down payment, and first-time use, and it can be financed. VA rules limit certain fees a veteran can pay, and sellers can contribute concessions up to 4 percent.
USDA loans
USDA programs may include an upfront guarantee fee and an annual fee. Program rules set the amounts and whether fees may be financed.
Cash purchases
No lender fees, no loan-related state taxes, and usually no appraisal. You will still budget for title, recording, inspections, and survey.
How property type affects costs
Condos and HOAs
Condos and planned communities often require estoppel letters, transfer fees, or prepaid dues. Lenders may require additional condo documentation. Budget for these items and confirm early with the HOA and closing agent.
New construction
Builders may charge administrative or closing fees, and you may see utility connection or impact-related fees. Builders often offer incentives or closing cost credits, especially if you use a preferred lender or title company.
Investment properties
Underwriting can be tighter, and lenders may require higher reserves. Interest rates and lender fees can be higher for non-owner-occupied properties.
Panama City and Bay County factors to budget
Property tax proration
Bay County uses Florida’s standard property tax calendar. Taxes are prorated between buyer and seller at closing based on the closing date and whether taxes have been paid.
Recording fees
Recording fees are set by the Bay County Clerk of Court and vary by document type and page count. Your Closing Disclosure will itemize the exact amounts.
Insurance in the Panhandle
Windstorm exposure can raise homeowner premiums. A wind mitigation inspection may lower your cost. Many properties near the coast sit in flood zones and require flood insurance when financing. Get quotes early and plan for the first year’s premium and any escrow funding.
HOA and condo fees
Many local HOAs charge estoppel and transfer fees that can be several hundred dollars. Confirm fees and who pays in the contract.
What you might pay: ballpark ranges
Every deal is unique. The following buyer ranges are common for financed purchases and exclude your down payment. Use your Loan Estimate and Closing Disclosure for exact numbers.
- Around $150,000 purchase price: roughly 2 to 5 percent in closing costs, or about $3,000 to $7,500, plus prepaids and escrow funding.
- Around $350,000 purchase price: roughly 2 to 5 percent, or about $7,000 to $17,500, plus prepaids and escrow funding.
- $600,000 and above: still often 2 to 5 percent, but larger dollar amounts for title insurance, state taxes on the loan, and escrow reserves.
- Cash buyers: typically several hundred to a few thousand dollars for title, recording, inspections, and survey.
Cash-to-close checklist for Panama City buyers
Use this step-by-step plan to avoid surprises.
Before you write an offer
- Get preapproved and request a Loan Estimate that itemizes projected closing costs.
- Budget 2 to 5 percent of the purchase price for buyer closing costs if financing. Budget less if paying cash.
- Ask your agent about typical seller credits in your price range and community type.
During the contract period
- Confirm in writing who pays the owner’s title policy and the documentary stamp tax on the deed.
- If condo or HOA, request estoppel and transfer fee estimates and check for any outstanding assessments.
- Schedule inspections and budget for them up front.
Two weeks to three days before closing
- Review your final Closing Disclosure at least three business days before closing and compare it to your Loan Estimate.
- Verify tax proration, HOA dues, and insurance premiums. Confirm whether flood insurance is required.
- Arrange your down payment, closing costs, prepaids, and initial escrow deposit. Follow wire instructions carefully.
At closing
- Bring required identification and any certified funds as instructed by the closing agent.
- Review all pages of the Closing Disclosure for lender fees, title fees, prepaids, escrow deposits, and seller credits.
- Keep copies of the recorded deed and your title policy once issued.
Tips to reduce your out-of-pocket
- Compare multiple Loan Estimates and ask lenders to clarify fees and options for discount points.
- Request seller credits during negotiations, especially for repairs or rate buydowns. VA buyers can use up to 4 percent in concessions.
- Shop insurance early and ask about wind mitigation credits.
- Consider your closing date. Closing near month-end can lower the first month’s prepaid interest.
- If buying new construction, ask about builder incentives for using their preferred partners.
The bottom line
Closing costs in Panama City follow Florida customs, but they are always negotiable and specific to your loan and property. Plan for the categories above, verify HOA and insurance early, and use your Loan Estimate and final Closing Disclosure as your source of truth. If you want a local, hands-on team to help you model cash to close and negotiate credits, we are here to help.
Ready to run the numbers on a specific home or condo? Connect with Beach House Sales and Development for a local walkthrough of closing costs and a tailored strategy.
FAQs
What are typical buyer closing costs in Panama City?
- For financed purchases, many buyers see roughly 2 to 5 percent of the purchase price in closing costs, plus prepaids and initial escrow deposits.
Who pays Florida’s documentary stamp tax on the deed?
- Florida custom often has the seller pay the documentary stamp tax on the deed, but it is negotiable and should be confirmed in the contract.
How are Bay County property taxes handled at closing?
- Taxes are prorated between buyer and seller based on the closing date and the county tax calendar, with credits or reimbursements shown on the Closing Disclosure.
What inspections should Panama City buyers expect and who pays?
- Buyers typically order and pay for a general home inspection, pest or termite inspection, and insurance-related inspections like wind mitigation or a four-point.
How do HOA and condo estoppel or transfer fees work in Bay County?
- Many HOAs charge estoppel and transfer fees that can be several hundred dollars, and payment responsibility is set by the HOA and negotiated in the purchase contract.
Do cash buyers still have closing costs in Panama City?
- Yes, cash buyers avoid lender fees and loan taxes but still pay for title-related fees, recording, inspections, and often a survey.
What is the difference between lender’s and owner’s title insurance in Florida?
- The lender’s policy protects the lender and is usually paid by the buyer, while the optional owner’s policy protects your ownership and is often paid by the seller by Florida custom.
How do VA loans affect closing costs for Panama City buyers?
- VA loans include a funding fee that can be financed, limit certain fees a veteran can pay, and allow seller concessions up to 4 percent, which can reduce cash to close.
