Received GFE and it says that I need $5600 (and change) to close. I have already put $1000 in the escrow account for earnest money. Included in the GFE was $500 escrow padding that I will get back after close, and $350 for inspection. I called LO and told her I paid for the inspection already and she said that will bring my money to close down by $350. I have already paid for the appraisal (450) as well.
So my question is; Is the appraisal and inspection fees part of the 3.5% down required by FHA? If not I don't understand how my money to close can add up to less than 3.5%....Not complaining if that's the case, just wondering.
The GFE is just what it says...Good Faith ESTIMATE.
The amount on there is an estimate of what your closing costs will be. Once you get to closing, they will tell you exactly how much to bring to the closing.
So my question is; Is the appraisal and inspection fees part of the 3.5% down required by FHA? If not I don't understand how my money to close can add up to less than 3.5%..
No, but you need to have 3.5% saved and a bit of a cushion for the "what ifs". We also paid for the inspection & appraisal fees upfront. (out of our savings)
Hope that helps.
We are finally homeowners!!
Closed May 5th-30 yr fixed at 5.25%.
ALL other fees are SEPARATE from the 3.5% required DOWNPAYMENT
Appraisal, Inspection, Orig. fee, PMI Funding fee ALL separate and are ADDITIONAL to the 3.5% min. required!!