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I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

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Anonymous
Not applicable

I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

First time home buyer here and I need some help.  I do not understand why I would have to pay so much at closing.  The way I understand it right now is that I would have to pay 3.5% of my loan for down payment PLUS the settlement charges listed below which I estimate to be a grand total of about 17000.00.  Am I right?  I hope that I have this wrong.  I was expecting to pay no more than about 8000 at closing...PLeeeeease help me!!!!

 

 

Purchase amount 160000

Loan amount 157102.00

 

Origination Charge 2534

Appraisal Fee 425

Tax Service 70

Flood Certification 10

Residential Mortgage Fee 10

Prepaid Interest 15 days 266.32

Mortgage Insurance Premium 2702

Title Services 665

 

Appraisal Final Inspection 150

First Year Homeowners Insurance for 12 months 864

Homeowners insurance 3 months 216

Taxes 5 months 662.75

Title Services 560

Owners Title insurance 640

Recording fees 60

Transfer taxes 480

City/County Tax/Stamps 160

 

TOTAL ESTIMATED SETTLEMENT CHARGES 10,475.07

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

This probably varies by area - but your origination charge looks pretty high. I would shop around. You don't have to stick with the lender unless you've signed intent to proceed. But you get the good faith estimate before signing so you know if you want to shop around.

 

Also if your seller agreed to pay 3% close costs (standard in my area) many of those fees will be covered by that - would be 4800 in your case. If you close closer to end of month will save you about $200. And your home insurance premium looks high for your home value - unless you're in a high risk area. If you shop around could probably lower that $200. 

 

Part of what's driving up your costs is that they're escrowing so many months of insurance and taxes instead of just 3. 

 

I would shop around more, the origination fee looks really high.

Message 2 of 7
Anonymous
Not applicable

Re: I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

Thanks so much. I read that origination fees were usually up to 1% of the loan so i was thinking that it was high too. This is very helpful! Thanks again!!
Message 3 of 7
StartingOver10
Moderator Emerita

Re: I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

Remember your UFMIP of $2702 will be rolled into the loan too
Message 4 of 7
StartingOver10
Moderator Emerita

Re: I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!


@Anonymous wrote:

First time home buyer here and I need some help.  I do not understand why I would have to pay so much at closing.  The way I understand it right now is that I would have to pay 3.5% of my loan for down payment PLUS the settlement charges listed below which I estimate to be a grand total of about 17000.00.  Am I right?  I hope that I have this wrong.  I was expecting to pay no more than about 8000 at closing...PLeeeeease help me!!!!

 

 

Purchase amount 160000

Loan amount 157102.00

 

Origination Charge 2534

Appraisal Fee 425

Tax Service 70

Flood Certification 10

Residential Mortgage Fee 10

Prepaid Interest 15 days 266.32

Mortgage Insurance Premium 2702

Title Services 665

 

Appraisal Final Inspection 150

First Year Homeowners Insurance for 12 months 864

Homeowners insurance 3 months 216

Taxes 5 months 662.75

Title Services 560

Owners Title insurance 640

Recording fees 60

Transfer taxes 480

City/County Tax/Stamps 160

 

TOTAL ESTIMATED SETTLEMENT CHARGES 10,475.07


Couple of other items: 

 

  • Check your contract to see if the seller is paying for your Owners Title Insurance policy.  Where I am located it is customary for the seller to pay Owners Title, but the county to the north and the one to the south of me have the buyers pay. It is a negotiated item in your Purchase and Sale agreement.
  • As mentioned in my post above, the UFMIP is rolled into your loan so that will bring your total cost (without any other adjustment) to about $7773
  • The previous poster is right, your origination fee looks very high to me, but then again, it might be the right amount if your rate is very low. What is your interest rate?
  • Collecting a full years of insurance in advance is normal. Usually only two months are collected for insurance escrow on top of the full year premium payment, not 3 months.
  • You show two charges for title services:  In the first group $665 and in the second group $560.  Is that exactly what your GFE says? If so, find out from the LO why you are being charged for title services twice
  • Why are you paying a Final inspection fee?  Is this new construction? If so, then okay. If not, you shouldn't have it on your GFE.

Everything else looks in line to me.

 

 

Message 5 of 7
Anonymous
Not applicable

Re: I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

I have title insurance twice on my GFE as well. One is the Banks title insurance and the other is my personal title insurance. (Foreclosure.)

 

Origination has a lot of factors as Starting pointed out. My Origination fees were $300. 0 points.

Message 6 of 7
Hopeforchange
New Contributor

Re: I REALLY NEED HELP UNDERSTANDING MY GOOD FAITH ESTIMATE - IM FREAKING OUT!!!

We had a final appraisal fee.  $150 to make sure the owner completed the work.

Message 7 of 7
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