Closing costs....what is everyone paying?

[mjr2444]

I know between 2-5% is the norm. I was told closing costs on a $280k loan would be about $4,200. That sounded pretty fair.....given that it's 1.5-1.75%. Does this sound too good to be true?

[StartingOver10]

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@mjr2444 wrote:

I know between 2-5% is the norm. I was told closing costs on a $280k loan would be about $4,200. That sounded pretty fair.....given that it's 1.5-1.75%. Does this sound too good to be true?

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Sounds low to me.  Sounds like you only have part of the numbers. What about prepaids and escrows?

Do you have a worksheet showing a detail of each of your costs for a 280k loan? If not, ask for one. 

[mjr2444]

Up front costs are $3,200......$800 for apprasial fees, $245 for credit reports, $60 for recording fees, $1260 for title insurance, $350 for escrow/inspection fee, $400 for loan admin fee, $120 in misc fees.....equaling $3,200 or so.

Then, on the back end......the Freddie Mac delivery fees.....with each 0.25 point being worth $700. The rate they have for a credit score between 700-720.....and with a LTV ratio between 60% and 70% is 0.50 total (so I'm assuming $1,400).

So, actually.....$4600 is total.

Am I missing something?

[Revelate]

Chase loan, 345K  25% down.  Sans seller credits, and the $(1,174.73) lender credit was some low-to-moderate income credit for where I was buying.

800. Items Payable in Connection with Loan Total POC*

Our Origination Charge** $682.00 $0.00

Your credit or charge (points) for the specific interest rate chosen $ $(1,174.73)

Appraisal fee to Solidifi National Appraisal Services $460.00

Credit report to Kroll Factual Data $10.00

Flood certification CoreLogic Flood Services $11.00

*Any POC listed above or in Other Credits must be shown on page 1 of the HUD in lines 204 - 209.

**Includes Origination Point (0.000% or $0.00)

900. Items Required by Lender to Be Paid in Advance Total

4 days of interim interest from 07/28/2015 @ $23.04 / day $92.16

Hazard Insurance Premium $325.00

1100. Title Charges Total

Settlement / Closing Fee $890.00

Notary Fees $250.00

Lenders Title Insurance $700.00

Owners Title Insurance $1,396.00

Sub Escrow Fee $62.50

Loan Tie-In Fee $175.00

Wire Fee to Title $30.00

Processing Demands $250.00

Overnight/Messenger/Handling $125.00

ALTA 8.1 Environmental Protection Lien $0.00

Recording Service Fee $0.00

Deed Preparation Fee $0.00

1200. Government Recording Total

Recording Fee Deed $125.00

1200. Transfer Charges Total

City/County Deed Tax Stamps $1,932.00

[edcampbell613]

Depends on where you live.

Escrows are escrows, all banks should be collecting the same amounts, so dont consider that something to compare.

Title and attorney fees are something you get to shop around for.

County/State taxes are going to be the same regardless of the lender you choose.

A good place to get attorney fees is Timios http://timios.com/ this is a good starting place to get average costs for attorney/title

now you got to compare the 800's

Bank origination points, discount points, underwriting fee, processing fee, flood, credit check, the list goes on.

You also go tto compare rates, rates vary by different lenders. 

[Anne1208]

We did a "mock" mortgage situation with our credit union on a $400k house in KY in July.  The closing costs + prepaids, etc. total would've ended up being about $12,000, and that was with the prepaids being at the highest they would be all year if you close in July (so, 3%). Also, they quoted us 2100 for property insurance, which apparently where we were looking is higher for property insurance than other places. 

[Anonymous]

NACA loan, $365k purchase price, $0 closing costs, about $3000 in prepaids (15yr loan so the prepaid mortgage payment makes up the bulk of that).

[Anonymous]

My totals due at closing are around 5k in Michigan for $120K FHA 

[Anonymous]

Right now where I live in California there is a TON of new building and high competition from new builders. We have visited at least 8 builders over the last 6 months and all of them have multiple communities being built in different areas of the Central Valley. All of them are paying closing costs. We are not even using the preferred lender but they are paying all the closing costs anyway. There are so many inventory houses (inventory houses that aren't even done yet!) that even very good builders are knocking down costs. The new homes are slightly more expensive than home built 2 or more years back and in California the lots are getting smaller and smaller while the homes are getting taller. Even 1600-1700 square foot homes are being built as 2 stories with a small yard.

So, we found new build that won't been done until end of September through Lennar. It's a one story 2200sq ft home on an 8000' corner lot. Lennar includes all the options so we only had to upgrade the carpet. They knocked off $7500 off the price of the home and we went into contract and we weren't even pre-approved yet (agent signed us right up when he heard we were using VA, erroneously believing everyone can get approved with a VA loan). They are covering 100% of the closing costs, including the interest impound. We only had to give them $500 in earnest money and the agent said we will likely get that back at the closing because they cover so much.

It doesn't make any sense in my area to not buy new unless you find an older home you absolutely fall in love with. The incentives are ridiculous right now. In the area we are buying, you can't get a house, old or new, for less than $152/square foot. We are paying $142/square foot.

[Anne1208]

I agree with bmhill - I dont WANT to agree with bmhill because I am an urban planner and municipal attorney by trade and very supportive of historic neighborhoods and housing.  BUT, at least for my husband and I as first time homebuyers, we don't see any other way to go but new.  The new home agents try to act cocky here and there, warning us about prices and interest rates going up so we should "hurry up and buy", but we can also look at what incentives theyre giving re: points, closing costs, etc, how theyre competing with each other in the subdivision we are looking at where multiple builders are, the large % gap between what they list for and what they sell for (they go down a LOT if you negotiate properly), etc.

Our friends bought a really cute great house in an old neighborhood that passed two inspections with flying colors. Then we didnt see them for a year bc every other week they had insane plumbing/electrical repairs popping up so they were too broke to go out. Plus, the property taxes in the new build area is literally half what it is in the city.  It stinks bc i love living in the city (i did my whole life, even in the central business district 2 blocks from work). For our first house between the builders' desperation and the warranties and the energy efficiency and the ability to get exactly what we want, and the newer floorplans that have been recently designed more for the millenial generation and less baby boomers (read: offices, open floor plan, big kitchen islands vs. formal living/dining, two story family rooms, etc), it's just got to be the way to go for our first house.  

So ive digressed, but yes, i agree with bmhill that new construction in Kentucky as well has included a lot of flexibility on them covering closing costs. We are budgeting to assume we will be paying the full $12,000 in closing costs, but if they will play those we will put more toward the house.