02-26-2013 11:28 AM
So, I was pre-qualified for a home yesterday, put in an offer same day and seller accepted next morning.
I am getting a USDA loan, 100% financing. I live in GA. My offer was $96,040. The seller will pay $2885.00 towards closing costs. I submitted $1000.00 in earnest money. Home Inspection is scheduled for 3/2.
Now, I'm working with my Loan Officer to get all docs. to the Underwriter. The LO said I have to pay her $450. I need to submit FOUR W2s and Tax Returns.
1. How do I know how much my closing costs will be at this point? I will need the remaining factored into my loan, since I won't have all the monies. Is that possible?
2. I thought the Appraisal fee was factored into the closing costs?
3. Why do I have to submit the last 4 W2s and Tax Returns as opposed to just the last 2?
4. Does closing usually take 2 months with a USDA loan? Could it be sooner?
02-26-2013 11:43 AM
02-27-2013 09:43 AM
1 you dont figure out your closing cost unless you know all the fees and taxes etc etc. you should get a GFE from your Lender within 3 days usually.
2 appraisals are normally paid upfront. The appraiser does not work for the Lender or Realtor. They get paid as soon as assigned.
3 do not really have an answer for this, it is probably Lender specific.
4 closing USDA in 2 months is a pretty fast turn around. While it is possible I wouldnt make any bets on it.
No, the appraiser does not get paid as soon as the appraisal is assigned. They are paid by the lender after closing, and it often still takes weeks to get the check.
02-27-2013 10:51 AM
02-28-2013 05:59 AM
02-28-2013 07:09 AM
Here the appraisal funds are collected up front at time of application because if the deal doesn't close, the appraiser still has to be paid regardless for the service they provided (appraisal).
MovingForward, your situation is slightly different because you were working with a builder and their captive lender on a property that is/was in the builders inventory. The appraisal still works for the builder if your deal didn't close because the builder still has the property. However, the point is moot because you closed.
I don't know of any lenders in my area that don't collect the application fee up front, which includes the appraisal and credit report costs. Many will credit back that fee at closing, on the HUD, but if you don't get approved or you don't close for whatever reason, then they aren't out of pocket for those expenses.
02-28-2013 07:20 AM - edited 02-28-2013 07:21 AM
Interesting. The home we are purchasing is not a new build (actually it is 83 years old) but the appraisal fees are included in the closing costs. We are just paying for an inspection.
Safe to say YMMV.
02-28-2013 09:28 AM
I got the answers to all of my questions.
The appraisal fee is actually going to be deducted from my closing costs, along with my $1000 earnest money. The only closing costs I have to pay is $1625. Yay! -- but am hoping I can coll it into my loan, but have to wait for the appraisal to come back. If the appraisal is more than my offer, only then I can roll it in (according to my LO).