The short answer
Plan on your down payment plus roughly 2% to 5% of the purchase price for closing costs and prepaid escrows, plus a few hundred dollars for inspections and a cash reserve after closing. On a $450,000 Hollywood, FL purchase with 5% down, that is about $22,500 down and $11,000 to $20,000 in additional cash — so roughly $35,000 to $45,000 total to be comfortable.
- Closing costs
- 2%–5% of price
- Inspections
- $400–$900
- Escrow deposit
- 1%–5% (credited back)
- Reserve after closing
- 2–6 months
01
The five cash items in every purchase
- Escrow deposit — paid days after signing the contract and credited toward your costs at closing
- Down payment — the balance of your equity contribution, due at closing
- Closing costs — lender fees, title insurance, settlement, recording, and Florida documentary stamps
- Prepaid escrows — several months of property taxes and insurance collected upfront
- Inspections and due diligence — paid out of pocket during your inspection period
02
A worked example on a $450,000 purchase
| Item | Estimate | Notes |
|---|---|---|
| Down payment | $22,500 | 5% conventional; FHA would be 3.5% |
| Lender fees | $1,500–$3,500 | Origination, underwriting, credit |
| Title and settlement | $2,000–$3,500 | Varies by who selects the closing agent |
| Prepaid taxes and insurance | $4,000–$8,000 | Florida insurance drives the range |
| Recording and stamps | $1,000–$2,500 | Documentary stamps on the mortgage |
| Inspections | $400–$900 | General, plus wind mitigation or four-point |
| Estimated total cash | $31,400–$40,900 | Before any seller concessions |
Numbers are illustrative, not a quote
Your actual figures come from the Loan Estimate your lender issues within three business days of application and the Closing Disclosure before closing. Use those documents, not calculators, for final planning.
03
What can reduce the cash you bring
Several levers legitimately lower your out-of-pocket total. Which apply depends on your loan program, so raise them when you get pre-approved.
- Seller concessions toward closing costs, negotiated in the contract
- Lender credits in exchange for a slightly higher rate
- Florida Housing down payment and closing cost assistance for eligible buyers
- Gift funds from family, documented per lender requirements
- VA eligibility, which removes the down payment entirely for qualifying buyers
04
Do not close with an empty account
Lenders often want to see reserves, and you want them regardless. Moving costs, immediate repairs, and Florida insurance renewals arrive quickly. Keep the purchase price low enough that reserves survive closing — the affordability math is in how much house you can afford.
05
Cash purchases need less, but not nothing
Paying cash removes the down payment, lender fees, and prepaid escrows, but you still owe title, settlement, recording, inspections, and any association transfer fees disclosed on the estoppel letter. Expect roughly 1% to 2% of the price in costs.
Cash needs shift by building and by price point, so run your figure past the best realtor in Hollywood, FL you can find before you write an offer — estoppel fees, escrow reserves, and association application costs vary more than most buyers expect.
The same rules apply for clients across Hallandale Beach and Pembroke Pines and the surrounding South Florida communities.