Closing cost Estimate ? (Howe: sales, insurance, loan)

[jaylivg]

Does anybody know how much closing cost would be for a 240k house ?

thanks .

[cheryjohns]

So much depends on the lender and your insurance company. Decent closing costs will run about $2200-2500 plus your pre-paids ( one year + 3 months insurance, 3 months taxes) if you escrow.

I have sat across the table and have seen some extremely high closing costs to the buyer on the HUD, because of the lending fees from the lender they selected. Ditto on high insurance, when the house was not even in the flood zone.

If you do a VA loan, there is a VA funding fee, but it can be rolled in.

[Katy4life]

new or used? Some builders/lenders will cover most of the closing costs on new homes as an incentive.

[jaylivg]

@cheryjohns

thanks for the info !

@katy4life
it's a new house , the builders already agreed to pay $2500 for closing cost , i wish they would pay 100% for closing cost that'd be nice ..

[jtothemak]

My builder was willing to pay part of my closing at first for using their lender. However told them to pay all closing if they wanted me to buy the house. It also helped I did not have a Realtor for them to pay. Just depends on the builder and what they are will to pay.

2nd on closing cost can vary by lender and type of loan, call the lender you plan on using and have them estimate your closing cost is the best way to go.

[piyf]

2.2-2.5k seems rather low, no?


OP, make sure they find out if theres a WIC or MUD. And if the house is new your taxes will be wrong the first year so save some money or be hit with a high azz tax bill the following year.

[cheryjohns]

Originally Posted by danieloneil01

2.2-2.5k seems rather low, no?


OP, make sure they find out if theres a WIC or MUD. And if the house is new your taxes will be wrong the first year so save some money or be hit with a high azz tax bill the following year.

No, that's why I use the lender I do. He always beats out the builder lender, even after taking into consideration the fact that, if you use their in-house lender, they will pay $X closing costs and title cost - and then beats them on the interest rate, in addition.

On not using a Realtor on a new house - it's about the negotiation, not the fact a Realtor is involved. On the last one, we peeled $35K off the price, all closing costs were paid, stainless ref., blinds, and front-loading w&d included. It appraised $55K over the sales price - so he re-fied them 5 months later, and they were able to drop the PMI out of the picture, after only paying 5% down.

[houstonlol]

Originally Posted by danieloneil01

2.2-2.5k seems rather low, no?


OP, make sure they find out if theres a WIC or MUD. And if the house is new your taxes will be wrong the first year so save some money or be hit with a high azz tax bill the following year.

Doubleplusgood on that one. Also ask if there are any other out of pocket expenses, such as PID, which isn't a tax but has all the stripes of one.

[jaylivg]

Well wells fargo , the lender , gave us estimate , the money we need to bring to close on the house we're buying is 20k .

Isn't this a little bit too much ?

[jtothemak]

Originally Posted by jaylivg

Well wells fargo , the lender , gave us estimate , the money we need to bring to close on the house we're buying is 20k .

Isn't this a little bit too much ?

If that includes your down payment for a FHA loan that sounds about right. 3.5% plus closing. I would suggest to put 20% down plus closing and avoid PMI.