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I'm in the process of buying my first home and new to this. My lender gave me a quote with all these.
Appraisal Fee + work order review $600.00
Origination 1% 1,559.03
Processing Fee $460.00
Underwriting Fee $395.00
Doc Prep $140.00 Total Lender Fees $3,154.03
Closing Fee $300.00
Title Search & Exam $150.00
Title Insurance-Lender&Owner $701.56
Name Search $35.00
Assessment Search $0.00
Recording Service Fee $50.00
Plat Drawing $65.00
Courier Fee & Wire $75.00 Total Title Company Fees $1,376.56
Recording Fee Fee $92.00
State Tax Fee ($2.40 per K) 1st mtg $374.17
Conservation Fee $5.00
Realtor Admin Fee $395.00 Total Government Fees $866.17
Total Closing Costs $5,396.75
Prepaids of Interest and Taxes/Insurance
Property taxes & homeowner's insurance collected at closing to establish a new escrow acct
6 mths prop taxes for esrow account $996.00
Association Dues- 2 mths $454.66
Interior Coverage 1 yr premium $375.00
Prepaid Interest/Estimate $418.46 Total Prepaids/Escrows $2,244.12
Are these fees all genuine, negotiable or any pf them avoidable?
Fees that go to a third party are generally firm. These include the title search, appraisal, attorney's fees, credit report and title insurance. It wouldn't be completely out of the ordinary, however, for a less-than-reputable lender to overcharge you for one of these services. If one lender charges $150 for a credit report and all of the others charge only $50, you should ask why.
Fees for services not performed by third parties — like courier, express mail and other administrative chores — can also be reduced.
Then there are the charges that the industry affectionately calls "garbage" or "junk" fees. These are the excessive processing and documentation fees charged by unscrupulous lenders. Examples include settlement costs, underwriting fees and application fees, which might be little more than alternative names for the same service. Should you come across these, immediately question your lender.
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Read more: Cut Your Closing Costs - Personal Finance - Real Estate - SmartMoney.com (http://www.smartmoney.com/personal-finance/real-estate/cut-those-closing-costs-13352/#ixzz1IBw2sNJp - broken link) Cut Your Closing Costs - Personal Finance - Real Estate - SmartMoney.com (http://www.smartmoney.com/personal-finance/real-estate/cut-those-closing-costs-13352/#ixzz1IBw2sNJp - broken link)
Maybe you can go with an Upfront Mortgage Broker?
The fees on my loan were about $500 less with them versus another discount lender, and more than $1,250 less than others.
Fees without an interest rate & terms of the mortgage are fairly useless. They give you a good idea of what the standard fees will be, and what the 3rd party fees are estimated at, but it's still useless if you are trying to figure out if it's a good offer or not. The interest rate could be 1%, 30-year fixed... then it'd be the deal of the century... or it could be a 15-year fixed at 6% and then it'd be a horrible deal.
In addition to the interest rate & loan terms you'll also need to lay out your scores & the sales price or down payment %.
None of the fees are alarming, but is it a good deal?
As Shane stated, depends on the interest rate you are getting. Getting an interest rate is like buying a car. You can get a Honda for $25,000 or a Bently for $300,000. They are both cars...get you to where you want to go. So why does anyone buy the Bentley? It is a better vehicle.
Same thing with attorneys, doctors, architects, atheletes... the better someone is the more they get paid.
The realtor admin fee has come under scrutiny in the past couple of years and should be negotiated. There was a lawsuit a couple of years ago and this is a link with some information:
I'm in the process of buying my first home and new to this. My lender gave me a quote with all these.
Appraisal Fee + work order review $600.00
Origination 1% 1,559.03 Depends on your rate
Processing Fee $460.00
Underwriting Fee $395.00
Doc Prep $140.00 Total Lender Fees $3,154.03
Closing Fee $300.00
Title Search & Exam $150.00
Title Insurance-Lender&Owner $701.56 THESE FEES DEPEND UPON THE
Name Search $35.00 TITLE COMPANY NAMED IN THE
Assessment Search $0.00 CONTRACT AND ARE 100%
Recording Service Fee $50.00 NEGOTIABLE IN MOST STATES
Plat Drawing $65.00
Courier Fee & Wire $75.00 Total Title Company Fees $1,376.56
Recording Fee Fee $92.00 Fees in red are typically cast in stone.
State Tax Fee ($2.40 per K) 1st mtg $374.17
Conservation Fee $5.00
Realtor Admin Fee $395.00 Between you and your Realtor Total Government Fees $866.17
Total Closing Costs $5,396.75
Prepaids of Interest and Taxes/Insurance
Property taxes & homeowner's insurance collected at closing to establish a new escrow acct
6 mths prop taxes for esrow account $996.00
Association Dues- 2 mths $454.66
Interior Coverage 1 yr premium $375.00
Prepaid Interest/Estimate $418.46 Total Prepaids/Escrows $2,244.12 These are what they are, they will be the same regardless of who you use as a lender.
Are these fees all genuine, negotiable or any pf them avoidable?
Please advise.
Please see above comments.......but overall, there's nothing that jumps out and screams, "sucker." In fact, all appears to be very much in line and typical for a closing. Yes, the Real Estate Admin fee has been controversial, but more charge it than not. All of the costs in the industry have gone up 200% (and more), yet the Realtor's commission has remained the same. And with values down, every business is getting by with less. I'm not advocating it, just explaining it because I understand it.
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