Settlement costs

[Anonymous]

Hi all,I have a question about settlement costs. Now that I somewhat know what they are, my seller agreed to pay 3k torwards my closing,I though I would be good because before I made an offer I called around and got some quotes on closing costs.I didn't really know that settlement costs were not grouped together with closing.I do now, but my question is about the charges, the house that I'm purchasing is 72,400, the total closing is 2100, the total settlement came out to about 2450.I thought that sounded kinda high,so I called a couple different banks just to get some ball park figures, and neither of the three banks said settlements should be that high, they said maybe around 1000-1500 total. Any andall inout is appreciated.Thanks in advance...

[cdtotten]

All depends on what the property taxes are like for your area and your insurance costs. In addition to closing costs that are paid to the broker, title co., appraiser, etc., you also must have impounds for property taxes and insurance. Depending on when your real estate taxes are due, they may collect the whole year up front (with it being pro-rated by the seller), and they will additionally collect a full years insurance up front. You also have to pay the daily interest for the remainder of the month you are closing in... so if you close on the 5th, you would have to pay 26 days interest this month, etc.

I don't see any issues with those closing costs, but your GFE will break things out for you and your HUD-1 settlement statement will show everything.

More than likely, the other brokers would pitch a "no closing cost" or "$299 closing costs, etc" deal that increases your interest rate and pays for the closing costs for you.