Mortgage Loans

[SantaMar]

i thought my closing costs might run around 10k.  my attorney said thats a conservative estimate?!  he couldnt give me an exact figure, obviously, however, im wondering by his use of the word conservative with regards to my estimated 10k closing costs, does that mean my estimates are high or low?

[ripper998]

Depends, FHA? Purchase price?  Closing costs depend on a lot of different things.  You should get a closing cost worksheet with your GFE to give you an idea.  Even then that may be somewhat off.

For example our closing cost worksheet showed we needed to pring 7K to the table for a 153K purchase price.  The HUD1 came in at 6.1K because the lender overestimated alot of stuff.  Certain things can only vary by 10% though so make sure you have the GFE explained to you.

[StartingOver10]

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SantaMar wrote:

i thought my closing costs might run around 10k.  my attorney said thats a conservative estimate?!  he couldnt give me an exact figure, obviously, however, im wondering by his use of the word conservative with regards to my estimated 10k closing costs, does that mean my estimates are high or low?

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Generally closing cost estimates do not come from an attorney. They may know the costs involved with title fees and settlement charges, but the attorney would not have anything to do with lender fees (and should not quote lender fees unless they are the lender).

Is this an attorney that is representing you in your purchase? Or, is this the closing attorney?

It's not possible to know what your costs will be without knowing the details of your loan. That's why you need the GFE from the lender - so you have an accurate estimate.

BTW, in general conversation the word "conservative" as used in your posted sentance  would imply that the $10k is more than what you need to have on hand to close. However, you have to consider that the estimate came from an attorney and not the actual lender - and the lender sets lender fees.

[SantaMar]

i used an attorney because that comforts me.  my mother in law is my realtor and in her part of the state they always uses attorneys...i feel comfortable with using an attorney to keep my best interests in mind...he is with us from "attorney review" through home inspection all the way to closing...settlement is made in his office.  only cost me 600 and i feel its worth it.

im a first time homebuyer, putting down 20% with a conventional loan.  and we are not planning to escrow.  i dont want a bank to control my tax dollars or insurance dollars.  i would pay them to the appropriate parties when needed.  i dont want FHA because i dont need FHA, between my fiance and i we have enough to cover downpayment and closing costs and still have decent reserves.  we decided to buy a home we can stay at forever, raise a family in so we dont need to move in a couple years.  we are both on the loan/deed, both incomes used to qualify...

offer accepeted was 210 with contingencies that are being worked out with my attorney.  mortgage would be 168k at 4.5 percent.  i might even buy down some points at settlement depending on the rate we get locked in at.  my fico was 757, hers was 690...my LO told me that if she had 10 more points higher (above 700) our rate would be pretty decent  if we pull her credit in another 40 days it might be up or down...who knows...

my LO is a friend...he is working my papers out...im not sure what bank is going to be our "lender"....

[ripper998]

4.5% seems high.  Me and my wife just did a FHA and our mid score was a 650.  Our rate was locked in two weeks ago at 4%.  With those scores you should be getting a lower rate I would think. 

[Nathan326]

I would agree. We are completing an FHA and are locked in at 3.86 if I remember correct. Our credit scores are similar. 

[cdtotten]

4.5 is extremely high right now, but keep in mind the OP is financing conventionally, which means that there credit score will affect their rate.

[SantaMar]

4.5 isnt locked in right now, we are floating, the house we are looking at has some issues so we might move on....however im back to the drawing board when it comes to lending...we have the ability to go conventional and the rate will be hurt a bit because my fiance and i are both goin on the loan. im 753 and she is 690.  my LO said her score could hurt the rate a bit...

which makes me question conventional....

FHA with 3.5 percent down and a rate of 3.8 sounds great until you see your monthly payments that stick for 5 years...pmi and upfront premiums non tax deductable?!

[cdtotten]

For conventional loans, the score used to calculate the rate is the middle score of the lowest borrower. So your spouse's 690 score is what determines your rate, and 690 is not going to get you the best conventional rate 99% of the time. So yes, that could affect your interest rate as much as 1-2% depending on the lender.

If you can afford 20% down conventional, consider doing a 15 year FHA fixed mortgage. With 15 year FHA loans, if you can put 10% down, there is no MIP. Great rate currently + no MIP and paid off in 15 years instead of 30.

[SantaMar]

i think the 15 year FHA might put me in more of an uncomfortable monthly payment...plus i do like the idea of not escrowing my taxes and homeowners...i want to have as much control of my money as possible....also what if i buy down my rate?  i have that option dont i?