Closing costs

[TColl10aolcom]

Seeking  advice:

I am looking at purchasing a condo for approximately $72,000 via FHA loan. Haven't actually completed sales agreement yet or received GFE. I did speak with lender to get an idea of closing costs. She quoted about $3500. Additionally, I would have about $700 in pre-pays (HOA, taxes, etc.). Seems high to me for a $72,000 purchase, but I'm a first-time homebuyer. Please let me know what you think.

Thanks, Teresa

[Anonymous]

Seems low to me if anything. Probably right. IT depends on your area. The thing is alot of the fees involved are fixed so on a smaller loan they are a larger %. SO it is not uncommon on a smaller loan to see 8-10% closing costs to 5% roufhly is pretty decent. The average overall is probably 5-6%. Condos can also sometimes have higher % because of the HOA fees ebing added in and often time transfer fees for the HOA association, etc. 3500 plus prepaids is pretty damned good if you ask me. Again, without seeing a breakdown it is hard to say becuase some places have really low fees and others are high..  The 700 seems low as well unless insurance and HOAs are pretty low at that condo.

[TColl10aolcom]

Thanks for the reply. I appreciate it. This is all new to me. The HOA's are $150 and insurance will be relatively low since HOA dues cover insurance to the exterior of the property. Thanks again.