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Regular Contributor
getmycreditright
Posts: 199
Registered: ‎05-23-2007
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Re: Estimated amount due at closing?

I've got a ton of questions about closing costs. I've asked my LO, but he's so unresponsive I don't even know why I bother.

 

We're putting 3.5% down on a $269.5k home. We have $6900 in deposits with the builder and they're contributing 3% (or $7000) to closing costs.

 

This is what I have calculated, but I'm not sure if I have everything (don't have GFE handy):

 

UFMIP: $4800

Appraisal: $450

Homeowners Insurance: $940

3 months taxes at $487/mo. $1461

HOA dues: $372

Title Fees:

Escrow Fees:

Credit Report fees:

 

Given the builders credit + the deposits we have, I don't think we should have to bring too much to closing, right? Any help/guidance would be great! Thanks! :smileyhappy:

 

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
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Valued Member
In-A-Limbo
Posts: 130
Registered: ‎02-15-2012
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Re: Estimated amount due at closing?

[ Edited ]

Mike_B03 wrote:

In-A-Limbo wrote:

Our house is $168k with 4% down. We didn't ask the seller for any closing cost but we did take lender closing credit of $3200. We're closing tomorrow and were told to bring a cashier check of $2800. Seem pretty low. I double checked with both my broker and attorney and they both confirmed the amount.


I assume you put earnest money down? That seems very low...4% of $168k is $6,720. The lender credit + your cashier's check is only $6,000, not even enough to cover the down payment let alone any closing costs.



Yes, we did put in $1000 earnest money. But I believe the reason why my closing cost is low is because in Illinois the property tax is in the rear so we are getting $5900 from the seller for the 2012 propert tax. Also, I reviewed my settlement paper work (just got it) and it looks like the lender is giving us more than $3200 credit.

Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: Estimated amount due at closing?


getmycreditright wrote:

I've got a ton of questions about closing costs. I've asked my LO, but he's so unresponsive I don't even know why I bother.

 

We're putting 3.5% down on a $269.5k home. We have $6900 in deposits with the builder and they're contributing 3% (or $7000) to closing costs.

 

This is what I have calculated, but I'm not sure if I have everything (don't have GFE handy):

 

UFMIP: $4800

Appraisal: $450

Homeowners Insurance: $940

3 months taxes at $487/mo. $1461

HOA dues: $372

Title Fees:

Escrow Fees:

Credit Report fees:

 

Given the builders credit + the deposits we have, I don't think we should have to bring too much to closing, right? Any help/guidance would be great! Thanks! :smileyhappy:

 


At the very least you will need to provide the balance of your 3.5% down payment.  If you've paid $6900 already, then you'd owe about $2500 on that plus anything additional not covered by the 3% you're getting from the builder.

Regular Contributor
getmycreditright
Posts: 199
Registered: ‎05-23-2007
0

Re: Estimated amount due at closing?

[ Edited ]

foofighter74 wrote:

getmycreditright wrote:

I've got a ton of questions about closing costs. I've asked my LO, but he's so unresponsive I don't even know why I bother.

 

We're putting 3.5% down on a $269.5k home. We have $6900 in deposits with the builder and they're contributing 3% (or $7000) to closing costs.

 

This is what I have calculated, but I'm not sure if I have everything (don't have GFE handy):

 

UFMIP: $4800

Appraisal: $450

Homeowners Insurance: $940

3 months taxes at $487/mo. $1461

HOA dues: $372

Title Fees:

Escrow Fees:

Credit Report fees:

 

Given the builders credit + the deposits we have, I don't think we should have to bring too much to closing, right? Any help/guidance would be great! Thanks! :smileyhappy:

 


At the very least you will need to provide the balance of your 3.5% down payment.  If you've paid $6900 already, then you'd owe about $2500 on that plus anything additional not covered by the 3% you're getting from the builder.


Thanks for the response man! I appreciate it!

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

Fighting the good fight!
Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Estimated amount due at closing?

The UFMIP is usually rolled into the mortgage, unless you are paying it up front? I dont think most people do.

Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: Estimated amount due at closing?

yeah, unless you think you're going to have appraisal issues...or you have an overabundance of available cash, just put the upfront MIP into the loan.

Regular Contributor
getmycreditright
Posts: 199
Registered: ‎05-23-2007
0

Re: Estimated amount due at closing?

If I did roll it into the loan, would the calc look like this:

 

Purchase Price: $269,500

UFMIP: $4,720

Total: $274,220

 

Down Pmt @ 3.5% = $9,597

 

If that's correct, wouldn't I start off underwater? Meaning that my LTV would be around 98% versus 96.5%. Sorry about all the questions. I don't mean to hi-jack the thread, OP.

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

Fighting the good fight!
Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012
0

Re: Estimated amount due at closing?

$269,500  - 9432.50 (3.5% of 269,500) = $260,067.50. 

260,067.50 + 4720 = $264,787.50.

 

 

Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Estimated amount due at closing?

[ Edited ]

The LTV would be 98% but that's not underwater. To be underwater, you would have to owe more ont he home than it's worth. The home should be worth what you are paying, $269,500, subtract the down payment of $9432 then add in the UFMIP back in and you have a loan for $264,788...or $4,712 in equity.

Regular Contributor
getmycreditright
Posts: 199
Registered: ‎05-23-2007
0

Re: Estimated amount due at closing?

Gotcha! Thank you both for the clarification.

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

Fighting the good fight!

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