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Old 04-26-2010, 01:29 PM
 
Location: MASSACHUSETTS
747 posts, read 666,486 times
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I am buying a house for $78,000, the loan amount is $62,400. My total estimated settlement charges are $4965.02. Is this unusually high? These are closing costs, correct? Just wondering if I should shop around for another lender
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Old 04-26-2010, 02:01 PM
 
Location: Charlton, MA
1,392 posts, read 4,505,520 times
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I worked as a real estate paralegal in MA preparing settlement statements for several years before moving to NC.

The total settlement charges are not the same as closing costs. When a lender quotes you closing costs they are leaving out tax, insurance, & interest.

Closing costs are lawyer fees, recording costs, & lender charges. Lender charges may include application fees, origination points, discount points. appraisal fee, flood check fee, among many other various fees that have a myriad of names. And contrary to what you might think, a small loan such as yours is more expensive at closing time.

Settlement charges include : 1. closing costs as described above 2. taxes & insurance escrows 3. prepaid interest

P.S. No, $4965 doesn't seem unusually high to me.
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Old 04-26-2010, 02:53 PM
 
259 posts, read 768,350 times
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Seems high to me, although I understand that fees are higher since the mortgage meltdown.
Ours were $3100 on a $200K loan (2005, no points)
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Old 04-26-2010, 03:05 PM
 
110 posts, read 278,039 times
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KellyCrash, where in NC are you now ?
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Old 04-26-2010, 04:16 PM
 
Location: Charlton, MA
1,392 posts, read 4,505,520 times
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Quote:
Originally Posted by ysbelman View Post
KellyCrash, where in NC are you now ?
I'm in Cary, NC just outside of Raleigh.
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Old 04-26-2010, 07:04 PM
 
Location: MASSACHUSETTS
747 posts, read 666,486 times
Reputation: 513
Quote:
Originally Posted by KellyCrash View Post
I worked as a real estate paralegal in MA preparing settlement statements for several years before moving to NC.

The total settlement charges are not the same as closing costs. When a lender quotes you closing costs they are leaving out tax, insurance, & interest.

Closing costs are lawyer fees, recording costs, & lender charges. Lender charges may include application fees, origination points, discount points. appraisal fee, flood check fee, among many other various fees that have a myriad of names. And contrary to what you might think, a small loan such as yours is more expensive at closing time.

Settlement charges include : 1. closing costs as described above 2. taxes & insurance escrows 3. prepaid interest

P.S. No, $4965 doesn't seem unusually high to me.
Thank you very much kelly, should I request the seller cover some of these fees? Someone told me I should but I am clueless. he did tell me mortgage companies don't like small loans
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Old 04-26-2010, 07:22 PM
 
Location: Charlton, MA
1,392 posts, read 4,505,520 times
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Quote:
Originally Posted by sturmgeist View Post
Thank you very much kelly, should I request the seller cover some of these fees? Someone told me I should but I am clueless. he did tell me mortgage companies don't like small loans
Depends on what stage of the process you're in. Usually you ask for closing costs to be covered as a part of the offer or Purchase and Sales neogiations. You can ask, it surely can't hurt. When we sold our house here in NC our realtor told us that in a buyers' market like we're in that sellers are being asked to pay closing costs. I'm glad he had prepared us for it. I am not sure what the condition of the market is in MA to know whether sellers are paying closing costs for buyers.
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Old 04-26-2010, 11:08 PM
 
Location: NH
557 posts, read 1,182,488 times
Reputation: 499
I bought a house in December, $240,000, around 18k settlement costs.
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