Closing costs estimate high?

[Anonymous]

Do you guys think is too high?

220K home

213,400 loan in Maryland

Origination Charge

$1,000.00

Origination Fee

$1,000.00

Required services we select

$503.50

Appraisal

$435.00

Credit Report

$60.00

Flood Certification

$8.50

Required services you select

$2,000.00

Pest Inspection

$75.00

Survey

$350.00

Title - Lenders Title Insurance

$500.00

Title - Title Services-Abstract Fee

$200.00

Title - Title Services-Attorney Fee

$450.00

Title - Title Services-Doc Prep Fee

$175.00

Title - Title Services-Settlement/Closing Fee

$250.00

Government recording charges

$175.00

Transfer taxes

$3,785.00

Fees paid in advance

$1,186.90

Homeowner's Insurance Premium

$879.96

Interest Due at Closing

$306.94

Initial escrow deposit

$1,180.04

Homeowner's Insurance Escrow Deposit

$146.66

Mortgage Insurance Escrow Deposit

$133.38

Property Tax Escrow Deposit

$900.00

Additional Costs

$904.20

Title - Owners Title Insurance (optional)

$904.20

Total Estimated Settlement Charges

$10,734.64

[StartingOver10]

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@Anonymous wrote:

Do you guys think is too high? Price 220,000 Loan 213,400 Maryland Estimated Settlement Charges Origination Charge$1,000.00 Origination Fee$1,000.00 Required services we select$503.50 Appraisal$435.00 Credit Report$60.00 Flood Certification$8.50 Required services you select$2,000.00 Pest Inspection$75.00 Survey$350.00 Title - Lenders Title Insurance$500.00 Title - Title Services-Abstract Fee$200.00 Title - Title Services-Attorney Fee$450.00 Title - Title Services-Doc Prep Fee$175.00 Title - Title Services-Settlement/Closing Fee$250.00 Government recording charges$175.00 Transfer taxes$3,785.00 Fees paid in advance$1,186.90 Homeowner's Insurance Premium$879.96 Interest Due at Closing$306.94 Initial escrow deposit$1,180.04 Homeowner's Insurance Escrow Deposit$146.66 Mortgage Insurance Escrow Deposit$133.38 Property Tax Escrow Deposit$900.00 Additional Costs$904.20 Title - Owners Title Insurance (optional)$904.20 Total Estimated Settlement Charges$10,734.64

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I will reformat to make it easier for everyone to read and comment:

Price $220,000   Loan $213,400

Maryland Estimated Settlement Charges

Origination Charge $1,000.00

Origination Fee $1,000.00

Required services we select $503.50

Appraisal $435.00

Credit Report $60.00

Flood Certification $8.50

Required services you select $2,000.00

Pest Inspection $75.00

Survey  $350.00

Title -

Lenders Title Insurance  $500.00

Title - Title Services-Abstract Fee      $200.00

Title - Title Services-Attorney Fee      $450.00

Title - Title Services-Doc Prep Fee     $175.00

Title - Title Services-Settlement/Closing Fee    $250.00

Government recording charges $175.00

Transfer taxes  $3,785.00

Fees paid in advance     $1,186.90

Homeowner's Insurance Premium   $879.96

Interest Due at Closing                    $306.94

Initial escrow deposit     $1,180.04

Homeowner's Insurance Escrow Deposit   $146.66

Mortgage Insurance Escrow Deposit          $133.38

Property Tax Escrow Deposit                      $900.00

Additional Costs              $904.20

Title - Owners Title Insurance (optional)     $904.20

Total Estimated Settlement Charges       $10,734.64

To me, your costs are slightly high for the size loan you are seeking. The item I think you need to address is the cost of title insurance: shop your title services. Just so you are aware, the lenders' title policy is usually only $25 + endorsements if it is issued simultaneously with the owner's title.  Any lender endorsement fees need to be disclosed to you (itemized). Any amount over the $25 simultaneous issue cost is the title company profit in addition to the settlement fee and doc prep fee.  Many title companies charge more than the $25 but $500 for lenders title is high IMO. 

Attorney fees are something else.  If you have an attorney, then his fee is whatever you negotiate. If you don't have an attorney, then you shouldn't pay an attorney fee.

The origination fee is high at $1000.  Are you getting an especially low interest rate?  

The rest of the fees seem Ok - some seem even a little low, like the survey. 

[StartingOver10]

lol...great minds think alike! I see you reformatted while I was answering

[Anonymous]

Thank you so much StartingOver10 for helping me to format the info. 

My rate is 3.5%

I also thought the the lender 1,000 fee too high.

But even with a 4.0% the lender  fee waas quoted 1,000. The title company if from the lender..

 I got a quote for a another title company

Request Criteria:
Address: waldorf, MD Charles, Maryland	Purchase Price: $220,000.00	Title Ins. Coverage:   Enhanced
Transaction Type:  Purchase	Loan Type:  Conventional	Transfer/Recordation Tax Split:   Split 50/50
Property Use:   Principal (Owner-Occupied)	Loan Amount:  $213,400.00	Short Sale, REO, New Construction:  No
MD First Time Homebuyer:  Yes
Section Description Fees        C.                Title Charges .   Title -Settlement or closing fee (All Inclusive *) $1,275.00   Title -Lender's title insurance $747.00   Title -REAL Credit™ Discount    What is this? ($200.00)        E.                Taxes and Other Government Fees .   Government recording charges $120.00   Recording Fees: Deed:$60.00 Mortgage: $60.00 Release:$0.00     Transfer taxes $1,650.00   County Transfer Tax $550.00 (included in total of transfer taxes above)     State Transfer Tax $0.00 (included in total of transfer taxes above)     State Recordation Tax $1,100.00 (included in total of transfer taxes above)     TOTAL GOVERNMENT RECORDING AND TRANSFER CHARGES $1,770.00        H.                Other .   Location Survey $195.00   Title -Owner's Title Insurance (Enhanced Coverage) $582.00   TOTAL TITLE CHARGES (includes all charges above with the identifier of "Title") (Note: Consumers should use this amount to assist them in shopping for and comparing title charges among settlement/title service providers) $2,404.00 TOTAL CHARGES (from sections C., E. and H. above) $4,369.00 * Federal Title’s Settlement Fee includes closing and escrow services, title search, title insurance binder, notary services, courier/overnight, document storage, e-recording service, and costs of wiring funds.

[Anonymous]

Wait wait, $500 for title insurance is too high? On my estimate with a USDA loan, purchase price of $190,000 the Lender title insurance is $1088. So I'm assuming that's astronomically high?

[StartingOver10]

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@Anonymous wrote:

Wait wait, $500 for title insurance is too high? On my estimate with a USDA loan, purchase price of $190,000 the Lender title insurance is $1088. So I'm assuming that's astronomically high?

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Yes. Get title quotes. 

You need to price out separately:

Owners title costs (sometimes the owner pays - sometimes the buyer pays)  The rate on this is government regulated (promulgated rate) Here is a rate calculator for one of the large title insurance underwriters so you can see:  http://www.oldrepublictitle.com/newnational/resources/locations.asp

Lenders title policy is $25 when issued simultaneously with owners policy 

Plus whatever lender endorsements are required for the loan. Your LO can tell you which endorsements are required.  Then get the quote for the endorsement from the title company.

Settlement fee - this is wide open. Some title co's charge a lot (I see this with REO properties) and others don't.  Typical settlement fees for non-REO properties range from $450 to $550 in my area.  [Note: REO properties have a tie in with their own title co and generally charge double the going rate for the settlement fee in my area. It could be different in your area.]

Ask the title company to provide it to you in writing so you can compare.  

[Anonymous]

Well based on the calculator in that link you sent, it's actually about right since I don't see a spot for owners title insurance on the estimate so it's not being coupled with that.

[StartingOver10]

OP, I see you got a quote in writing. They still have not itemized out the endorsements that are required by your lender, if any. Have them itemize it for you.

If you are not getting an owner's title policy, then the lender's title policy will be higher.  Everyone here in my area gets owners title insurance - but not all the areas are the same. Check your contract to see who pays what for your title insurance.

Also, shop additional title companies.  In the P&S contract, there will be a paragraph that specifies who pays for owners title insurance and who gets to select the settlement company. In my county, the seller pays for owners title typically, but in the county to the north and to the south, the buyer pays.  It is negotiated in each contract. Check your contract to see who pays.

[StartingOver10]

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@Anonymous wrote:

Well based on the calculator in that link you sent, it's actually about right since I don't see a spot for owners title insurance on the estimate so it's not being coupled with that.

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When you go to the link, go to your state and then input your sales price and mortgage amount.  It will show the lender's policy (with endorsements included) in the middle column and a separate column for lenders including owners policy on the far right of that box.   Go to the bottom of that box and you will see a notation for the owner's policy as a footnote. You will see that calculator already builds in a profit for the title co. Title companies are service providers just like anyone else. Their services can be negotiated. The cost of the policy is government regulated but the settlement fees and junk fees on the settlement statement are not.

It behooves you to have accurate info so you know what you pay - and then negotiate with the title co the other fees.

I believe in the title co making a profit - just not an obscene profit. JMO.

Did your disclosure show a settlement fee? Or any other fee in the title/settlement process?

[Anonymous]

Yea in "Services you can shop for" there are quite a few fees here.