closing cost question (Austin, Point, Wells: insurance, mortgage broker, credit)

[austin_c0wboy]

The closing costs related to a home purchase is this all coming from the lender? If so would getting a HUD loan ease up on the costs?

[o-state]

I don't have an answer, but have been wondering what title costs are associated with new homes in Austin. We get a 4k credit toward closing costs, but I think the lender just jacks up the prices in order to apply the credit. Any insight would be helpful.

also looking for any mortgage broker referrals?

[AZMonsoon]

I am a lender in AZ....and do 85% of my buisness in TEXAS. I can try to help you all out with these questions:

1: Typically....Lender Fees are usually range from $850.00 ( includes appraisal) plus an option of origination and discount points.
- For Example: $250 Processing, $250 Underwritng and $350 aprsl
- Points can range anywhere depending on the loan amount...but usually is 1% of the loan amount

2: 3rd Party Costs
- Title Companys in Texas are all about the same and again depends on the loan amount. For this example...let's say the home is $300K
- Title Insurance: about $1600....Closing Fee: $250.00...Attorney Fee: $75.00...Misc Costs: about another $500.00 ( include doc prep fee)

3. Pre-paids: If you are thinking of including taxes and insurance to your payment..then you need to set $$ on side to put in an escrow account. Again, it all depends when you close the loan that determins how many months of reserves required to be set aside. Texas has high property taxes and may come to a suprise when the number come on by. Please note that you will need an insurance premium as well

My ADVISE: Before you buy a home....do your research
1) Call a title company and ask them for their fees. THis way you know if the Lender/Broker is on target on the GFE

2) Lender/Broker. Well....everyone fishes from the same pool for rate. My point is that you may occur extra junk fees via a broker.

3) Find out property taxes in the area... make sure it is still in your budget.

and if you are going to ever take out $$ in the future on the property....make sure you know homestead property laws. Please ask me if you have any Q's

Regards,

Aaron Brown

[austin-steve]

I'm looking at the HUD1 (settlement statement) on a $245K cash deal I just closed today.

The Buyer side costs are $783 total.
$433 new survey
$250 Escrow fee. (varies from Title Co. - some are only $100)
$20 recording fee
$80.85 Title Insurance (Buyer's portion).

Seller side is:
$70 Doc Prep
$1617 Title Insurance
$1.00 Texas junk fee
$250 Escrow fee
$48 Tax Certificate
plus commissions

When there is no lender involved, the fees are pretty limited and simple to understand. On most of our deals with a loan, we usually see the 800 Section lender fees in the $1200 range, not including the loan origination fee. Other costs are prepaids like insurance and interest and those vary.

Steve
Steve

[austin_c0wboy]

SO would the closing cost from a HUD lender be different non-HUD lender such as Wells Fargo?

[austin-steve]

Originally Posted by austin_c0wboy

SO would the closing cost from a HUD lender be different non-HUD lender such as Wells Fargo?

I don't think so, but I haven't sold a HUD home in years. You'd have to ask a HUD lender.
Steve

[Elipar]

Originally Posted by austin-steve

I'm looking at the HUD1 (settlement statement) on a $245K cash deal I just closed today.

The Buyer side costs are $783 total.
$433 new survey
$250 Escrow fee. (varies from Title Co. - some are only $100)
$20 recording fee
$80.85 Title Insurance (Buyer's portion).

Seller side is:
$70 Doc Prep
$1617 Title Insurance
$1.00 Texas junk fee
$250 Escrow fee
$48 Tax Certificate
plus commissions

When there is no lender involved, the fees are pretty limited and simple to understand. On most of our deals with a loan, we usually see the 800 Section lender fees in the $1200 range, not including the loan origination fee. Other costs are prepaids like insurance and interest and those vary.

Steve
Steve

I'm considering whether to get a mortgage or do an all-cash transaction. My purchase price is ~$130,000. If the estimates of 2-6% for closing costs are true, it could cost between $2600 to $7800. If I do an all cash transaction, it could save most of that? Who handles an all-cash transaction --- the realtor, a title agent, etc?