LE on 30 yr VA_ Is this high?

[MauiMan85297]

Services you can shop for:

Title-CPL Fee- $25

Title-eDoc Fee- $75

Title-Endorsement Fee $150

Title-Lender Title Insurance $1601

Title-Settlement/Closing Fee- $496

[StartingOver10]

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@gsully00 wrote:

Services you can shop for:

Title-CPL Fee- $25

Title-eDoc Fee- $75

Title-Endorsement Fee $150

Title-Lender Title Insurance $1601

Title-Settlement/Closing Fee- $496

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In my opinion the Lender title insurance is high. Ask your Realtor. In my geographic area the simultaneous issued title insurance (lender policy) varies from title company to title company and the company I use for closings now charges $25 for the lender policy.  The owner policy is based on the insured (mortgage) amount. Lenders also have endorsements that are required for their policy and those endorsements are charged on top of the simultaneous issue fee. Call the title company and ask for a breakdown.  Look at your contract to see who pays for the owners title policy.  If it is the seller and you are the buyer, then you should see a credit on the settlement statement for the sellers portion of the owners title policy.  This is negotiated in your Purchase and Sale Contract. 

[MauiMan85297]

It's a new constuction house and the sale price is $273,333 with a loan amount of $279,892 (VA funding fee incl), I don't think nor do I see where the builder will pay lender title insurance.

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@StartingOver10 wrote:

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@gsully00 wrote:

Services you can shop for:

Title-CPL Fee- $25

Title-eDoc Fee- $75

Title-Endorsement Fee $150

Title-Lender Title Insurance $1601

Title-Settlement/Closing Fee- $496

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In my opinion the Lender title insurance is high. Ask your Realtor. In my geographic area the simultaneous issued title insurance (lender policy) varies from title company to title company and the company I use for closings now charges $25 for the lender policy.  The owner policy is based on the insured (mortgage) amount. Lenders also have endorsements that are required for their policy and those endorsements are charged on top of the simultaneous issue fee. Call the title company and ask for a breakdown.  Look at your contract to see who pays for the owners title policy.  If it is the seller and you are the buyer, then you should see a credit on the settlement statement for the sellers portion of the owners title policy.  This is negotiated in your Purchase and Sale Contract. 

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[StartingOver10]

There are two title insurance policies:

1. Owners Title insurance- this is the one that is negotiable
2. Lenders policy - which is a simultaneous issue with the Owners Title Insurance and the buyer pays this one.

You should see a paragraph in your contract regarding who pays what for both owners policy and lenders policy.

However, with new construction contract, I almost always see where the builder pushes this owners title policy expense over to the buyers side - especially if the builder is contributing toward "your closing costs and pre-paid expenses".  Is the builder giving you anything toward your closing costs?

[MauiMan85297]

2% ($5049) towards closing and 8k in upgrades, so if I were paying for both policies would you say that $1600 is still to high or good.

[StartingOver10]

There is a cap on what the title company can charge for the title insurance policy (promulgated rate), but how title insurance companies get around it is by charging a bunch of other fees.  Get in touch with the title company and have them give you a complete breakdown of all of their fees.  

Based on the sales price and mortgage amount the figure you have seems reasonable if it is for both the Owners Title Insurance policy and the Lenders policy.