Closing Costs on New Construction Homes in Orlando: What to Expect Before You Sign

You found the floor plan. You love the community. You've run the numbers on the mortgage… and then someone mentions closing costs, and the whole budget conversation shifts.

If you're buying new construction in Orlando and you're not sure what closing costs actually look like, how much they'll run, or whether the builder is really doing you a favor with their lender incentives, this is the post to read before you sign anything.

How much are closing costs on a new construction home in Orlando?

Closing costs on a new construction home in Orlando typically run 2% to 5% of the purchase price, paid in addition to your down payment. On a $1,000,000 home, that's $20,000 to $50,000. On a $750,000 home, plan for $15,000 to $37,500.

That number catches a lot of buyers off guard, because the focus during the sales process is almost always on the home price and the monthly payment. Closing costs live in the fine print — until they don't.

Here's what makes up the bulk of that figure on the buyer's side:

• Loan origination fees — what the lender charges to underwrite and process your mortgage
• Title insurance — protects your ownership of the property
• Appraisal fees — required by your lender to confirm the home's value
• Prepaid homeowners insurance — typically the first year, paid up front
• Prepaid property taxes — a prorated portion depending on when you close
• Escrow and settlement fees — the cost of administering the closing itself

Each one has a purpose, and each one is worth understanding before you sit down at the closing table.

Should you use the builder's preferred lender?

Sometimes — but only after you've compared their offer against an independent loan estimate. This is the part of the new construction buying process where I see buyers make the most expensive mistakes.

Almost every major builder in Orlando — Pulte, Toll Brothers, Dream Finders, Meritage — has a preferred lender, and they will offer closing cost credits, rate buydowns, or design center upgrades to use that lender. Sometimes $10,000 or more. It feels like free money.

Here's what they don't emphasize: those incentives only apply if you finance through their lender, and while the headline rate often looks attractive, the lender's fees and overall loan structure may not be the most competitive on the market.

The path I walk every buyer through is this: take the builder's offer as your baseline, get a competing loan estimate from an independent lender, and compare the total cost of both loans over five to seven years — not just the credits on closing day. Sometimes the builder's deal wins. Sometimes it doesn't. But you won't know unless you have both numbers in front of you.

I spent a decade as a mortgage loan officer before my real estate career, and reading loan estimates side by side is where that experience earns its keep. Part of my job is connecting you with loan officers who can walk through the details of your specific situation — especially if you're relocating and your financial picture is more complex than a standard W-2 file.

What closing costs does the builder actually pay?

Very little, by default. Builders typically cover document preparation fees and deed recording costs — administrative items that are small compared to what you're bringing to the table.

What builders can do is offer concessions: closing cost contributions, rate buydowns, or design center credits. This is where buyers benefit most — but those concessions are negotiated, not automatic. The amount, the form they take, and whether they're tied to the preferred lender are all variables.

Builders also negotiate differently than individual sellers. They're protecting their price per square foot and their lender relationship, which means the leverage points are different. Relationships and strong communication with builder representatives change the outcome of that conversation — and that's exactly where an experienced buyer's agent earns their place at the table.

What Florida closing costs surprise out-of-state buyers?

If you're relocating from out of state, a few line items on a Florida closing disclosure will look unfamiliar. These are the three I prepare every relocation client for:

Documentary stamp taxes

Florida charges a transfer tax on the deed — currently $0.70 per $100 of the purchase price. On a $1,000,000 home, that's $7,000. It appears on almost every Florida closing, and almost nobody moving from out of state sees it coming.

Title insurance

In most Central Florida resale transactions, the seller customarily pays for the buyer's title insurance. In new construction, the buyer almost always pays for their own policy. It's not optional, and at higher price points it's not a small line item.

Prepaid property taxes and insurance

Florida property taxes are paid in arrears, which means you'll prepay a portion at closing depending on the time of year. Combine that with the first year of homeowners insurance — the good news for Orlando buyers is that Central Florida premiums run significantly lower than coastal South Florida, since we're inland.

When I work with out-of-state and international buyers, I share anonymized snapshots from previous closings so you can see the complete picture before you're sitting at the table — not after.

How much cash should you keep in reserve after closing?

Plan for two to three months of mortgage payments in reserves, plus a buffer for immediate move-in expenses. Lenders often require the reserves on top of your down payment and closing costs — and new construction adds its own day-one costs.

Builder-grade landscaping, window treatments, blinds, a refrigerator if it wasn't included — these add up faster than most people expect. Building a $5,000 to $10,000 buffer into your budget for immediate post-closing expenses is a conversation I have with every buyer I work with, and at higher price points and larger homes, that number scales up with the square footage.

Why your final walkthrough matters more than you think

Before you close on a new construction home, you'll do a builder orientation and final walkthrough. Most buyers treat it like a formality. It isn't.

This is your last opportunity to document anything that isn't finished, wasn't installed correctly, or doesn't match what you selected in the design center. Builders are responsible for making it right — but you need to catch it and put it in writing before you hand over your funds.

Bring your contract, your design selections, and your patience. Walk slowly. Check every room, every outlet, every door. I've seen buyers find significant issues at this stage that were corrected before closing — and I've seen buyers move in and spend months trying to get the builder to come back out.

My standing recommendation: hire an independent home inspector who specializes in new construction. They bring building knowledge that exceeds a standard resale inspection, and they know exactly where builders cut corners.

When the builder's offer wasn't the right offer: Scott's story

Scott relocated from Montana with a clear head and a long financial history behind him. He wasn't a first-time buyer trying to figure out how mortgages work. He had an established relationship with his bank, years of financing history, and a lender who knew his business and his family.

The builder's preferred lender offer was real: $2,000 in closing cost credits, available only if he financed through their program.

Scott walked away from it.

Not because the offer was a trap, and not because the builder's lender was disreputable — but because he understood something that takes most buyers years to learn: a lender who knows your full financial picture — your business, your history, your long-term goals — is worth more than a short-term credit at the closing table.

By staying with his own lender, Scott secured a better rate and more favorable terms than the builder's program offered. The $2,000 he left behind was recovered quickly, and the relationship he protected was one he'd spent years building.

After nearly 30 years in real estate — a decade of it as a mortgage loan officer — I've sat at enough closing tables to know that the best financial decision isn't always the one with the biggest number attached to it. Scott knew that going in. My job was making sure he had the full picture to confirm it.

The bottom line on new construction closing costs in Orlando

You're going to pay closing costs. The only question is whether you go in prepared or surprised.

• Know your range: 2% to 5% of the purchase price — $20,000 to $50,000 on a $1M home
• Compare the builder's lender offer against an independent loan estimate over a 5–7 year horizon, not just closing day
• Budget for Florida-specific fees, especially documentary stamp taxes at $0.70 per $100
• Keep reserves for lender requirements and day-one move-in costs
• Treat the final walkthrough like the negotiation it is, with an independent new-construction inspector at your side

If you're in the middle of a new construction search in Orlando and want to walk through the actual numbers on a specific community or builder, that's exactly the conversation I have every week — and I would love to help.

Ready to understand what your closing costs will actually look like before you sign? [Let's talk →]

Frequently asked questions

Are closing costs higher on new construction than on a resale home?

Often, yes. In new construction the buyer almost always pays for their own title insurance, which the seller customarily covers in most Central Florida resale transactions. Builder incentives can offset the difference — but only when they're negotiated well and compared against independent financing.

Can you negotiate closing costs with a builder in Orlando?

Yes. Builders rarely cut the listed price — they protect their price per square foot — but they will negotiate closing cost contributions, rate buydowns, and design center credits. Those concessions are negotiated case by case, and an agent with builder relationships changes the outcome.

What are documentary stamp taxes in Florida?

Documentary stamp taxes are Florida's transfer tax on the deed, currently $0.70 per $100 of the purchase price. On a $1,000,000 home, that's $7,000 due at closing. It applies to nearly every Florida home purchase.

Do I need my own realtor when buying new construction?

The builder's on-site sales agent works for the builder, not for you. Your own agent costs you nothing as the buyer in most new construction transactions, and brings independent representation on contracts, incentives, lender comparisons, and the final walkthrough.

About Nicole Mickle

Nicole Mickle is a luxury real estate agent with Olympus Realty in Orlando, Florida, specializing in new construction and high-end relocation. With nearly 30 years in real estate — including a decade as a mortgage loan officer — Nicole helps buyers relocating to Windermere, Dr. Phillips, Winter Park, and southwest Orlando navigate builder contracts, lender incentives, and Florida's closing process with full visibility into the numbers.