Closing Costs

[Anonymous]

I just got a pre-approval and GFE from Chase today. I was pre-approved for a $290,000 purchase with $40,000 down payment. The closing costs are estimated to be $13,000. (this is in NYC). I want to try and get the seller (when I find a place) to pay for a part or all of the closing costs ,but if I can not my question is: Can the closing costs be rolled into the mortgage?

I have 40,000 total so I can put all that towards down payment or subtract 13,000 from the down payment and pay closing costs up front. 

Can I roll them into the mortgage and which is better to do?

[Anonymous]

I could be wrong, but that seems awful high for closing costs, is there a interest rate buy down in there or something.

Also, rolling costs into a loan in a declining market is generally a bad idea.

I would check with some other companies as far as the rates verses the closing costs go.  My closing costs for a 320K purchase in So Cal were about 8500.00.

One thing that helps is to close at the end of the month.  Then all your pre-paids go down close to zero.  the only downside is you get less time until your first payment is due.. Moving your close from say the 1st to the 30th could drop cc a 1500-2K probably.

[MattH]

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@Anonymous wrote:

I could be wrong, but that seems awful high for closing costs, is there a interest rate buy down in there or something.

Also, rolling costs into a loan in a declining market is generally a bad idea.

I would check with some other companies as far as the rates verses the closing costs go.  My closing costs for a 320K purchase in So Cal were about 8500.00.

One thing that helps is to close at the end of the month.  Then all your pre-paids go down close to zero.  the only downside is you get less time until your first payment is due.. Moving your close from say the 1st to the 30th could drop cc a 1500-2K probably.

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I agree, first that $13K seems extremely high and second that rolling costs into a loan in a declining market is a baaaad idea.