Closing costs??

Question

What am I looking at roughly in closing costs for a 350k home with a 300k mortgage...

Answer 1

It can vary quite a bit, but regardless of where you are, your lender will be required to give you a good faith estimate. When you receive this, ask them to go over the list one item at a time with you. They'll probably resist and tell you that no one else asks them to do that, but just tell them you're not everyone else - you have a right to know what the charges are.

Some of the items will be third party charges - these are things that are paid to parties other than the lender, like title charges, escrow fees, recording fee, etc. If you go through a broker, his cut will also be part of overall costs. You'll also have prepaids (tax, insurance, and interest). Prepaid interest is the only item going to the lender, but the amount of this will be entirely dependent upon the loan terms and the timing of when the loan closes. All of these charges are legitimate and are beyond the control of the lender.

However, there are other charges that will go directly to the lender. This includes an origination fee or points, as well as anything else, which can be termed a variety of things - doc fees, processing fees, etc. These items really just pad the amount the lender is already making on the deal. If they total more than a few hundred dollars, I'd question it - despite what you may be told initially, everything is negotiable. It's a tricky business, since costs sometimes well exceed what is represented on the good faith estimate, so it's buyer beware. Good luck.

Answer 2

You should talk to your real estate agen about the closing costs because it varies depending on what incentives you may have or what program you're using.

Some home builders will pay for part of or maybe even all of your closing costs, depending on what specials they may have if they really want to close out on your loan.

If you're buying a house from a home owner, you should ask to see if they'll pay for it. Every little bit helps. If they really want to sell (especially in today's market) you'll be surprised how many out there are willing to work with you.

For example, I personally went through this last year and our house was about $320K. Total closing costs minus the $2500 incentive from our home builder came out to be about $8000 out of our own pocket. Hope this helps...

Answer 3

There are lots of variables.. like..

1. what state and where you live
2. What is going into escrow
3. And how many fees are waived or picked up by seller..
4. What date in the month you close..the closer to the last day of month the less prepaid interest you pay.

For my recent place which is in your same range.. it cost about 3500 because are taxes and insurance were not in escrow and we closed on the 27th so only had to pay a few days interest.

Answer 4

Depends on the lender or the bank we spent 62K and one bank costs were4k and the other were only 1500. So it just depends.. Congrats on the new house.